Black unemployment rises in August jobs report despite more job seekers

“A lot of people find jobs, but a bigger share of those who went out looking didn’t. So, the Black unemployment rate has been going up because employers are still passing over Black workers,” Spriggs told CNBC on Friday. “When you look at those numbers, it’s clear employers are saying, ‘We want workers, but not exactly.'”

The unemployment rate across all races for people without high school diplomas who are 25 and over was 7%, while the jobless rate for Black people with high school diplomas in the same age category was 10%.

Spriggs’ comments refer to the widespread complaint among U.S. employers that they are unable to find workers to fill a record number of job openings. The Labor Department reported last month that job openings roared to a record 10.1 million on the final day of June.

Some employers, and especially restaurants, are scrambling to entice would-be workers with pay increases, signing bonuses and more generous benefit plans.

Walmart, for example, said Thursday it is raising hourly wages for more than 565,000 store workers by at least $1.These incentives have to be significant enough, though, to help ease the barriers that are keeping people from working, said Dr. Kristen Broady, a fellow in economics studies at the Brookings Institution and policy director of the think tank’s Hamilton Project.

“Is it enough to cover childcare?” she asked. “Are you increasing wages enough for people to be able to cover costs of being able to get to that job?”

Business leaders, including the CEO of the Chamber of Commerce, have blamed a lack of skilled labor, Covid-era jobless benefits and a lack of child care for employers’ struggles.

However, Spriggs said the stubbornly high unemployment rate among Black workers has one primary explanation — discrimination.

“When you see Black workers struggling but the labor market doing well, that’s a sign of employers showing their preference,” Spriggs said.

Article source: https://www.cnbc.com/2021/09/03/black-unemployment-rises-in-august-jobs-report.html