The latest jobs report from the U.S. Bureau of Labor Statistics revealed that the Black unemployment rate fell slightly in August, suggesting good news for Black workers and the overall economy. However, economists tell theGrio the latest report is cautiously optimistic.
The jobless rate for Black Americans in August stood at 5.3%, barely a change from the July rate of 5.8% but lower than the unemployment rate for Blacks a year ago (6.4%). The national rate slightly rose to 3.8%, which the White House and economists noted isn’t necessarily bad news since most of the increase was a result of more Americans joining the labor force participation and actively looking for work.
President Joe Biden used the August jobs report on Friday to boast the strength of the U.S. economy, including the fact that the unemployment rate remained below 4% for 19 straight months.
While delivering remarks at the White House Rose Garden, the president also noted that since taking office, “we’ve seen record lows in unemployment for African Americans, Hispanic workers…veterans, [and] workers without high school diplomas.”
The Black unemployment rate has been relatively low compared to its historical levels, which is something that is welcomed by economists. However, given interest rate hikes instituted by the Federal Reserve, there is concern that the economy is cooling to the point that unemployment could rise again for Black Americans.
“The slight decline in unemployment is encouraging,” Andre Perry, economic researcher and senior fellow at the Brookings Institute, told theGrio. Perry added, “But we are starting to see some stabilization – a new baseline that is lower than pre-pandemic levels.”
Harry Holzer, professor of public policy at Georgetown University and senior fellow in economics studies at Brookings, told theGrio, “I think the labor market is still strong but is clearly slowing….
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