Managing Editor
Economists generally say that the recession ended a year ago and economic growth began after what most consider the worst recession since the Depression.
Job growth hasn’t kept an optimistic pace, however. The overall U.S. unemployment rate was 9.5 percent in June, down slightly from May but still significantly higher than 5.5 percent two years ago as the recession tightened its grip.
Friday, the U.S. Labor Department reported that the number of unemployed people was 14.6 million, while nonfarm payrolls declined because of the end of the 2010 Census workforce. Private-sector payrolls rose, however.
“This has been a brutal recession, and employment is coming back very slowly,” said Candace Moody, communications vice president for the WorkSource job service.
At midyear, and as the recovery struggles, a closer look at the almost 40-page report reveals differences among those unemployed.
Keep in mind that the unemployment rate measures those who are in the workforce, meaning they are people looking for work. It does not count the discouraged workers, who are those who say they have stopped looking for a job.
In general, women have lower unemployment rates than men, whites have lower rates than blacks and teenagers have the worst rates of all.
Here are the general unemployment rates among some groups as of June.
• Men age 16 and older: 10.5 percent.
• Men age 20 and older: 9.9 percent.
• Women age 16 and older: 8.3 percent.
• Women age 20 and older: 7.8 percent.
• Teens 16-19: 25.7 percent.
• Whites: 8.6 percent.
• White men age 20 and older: 8.9 percent.
• White women age 20 and older: 7.1 percent.
• Blacks: 15.4 percent.
• Black men age 20 and older: 17.4 percent.
• Black women age 20 and older: 11.8 percent.
• Black teens 16-19: 39.9 percent.
• Hispanics: 12.4 percent.
The report also showed unemployment rates by educational attainment for people age 25 and older. The higher the educational level, the lower the unemployment rate and the higher the participation rate.
The participation rate is the share of people in their categories who are working or looking for work. While just 45 percent of people with less than a high-school diploma are in the labor force, the rate rises to 77 percent of those with a college degree.
The unemployment rates for those in the labor force:
• Less than a high school diploma: 14.1 percent.
• High school graduate, no college: 10.8 percent.
• Some college or associate degree: 8.2 percent.
• Bachelor’s degree and higher: 4.4 percent.
“The data ... on the effect of education on unemployment has been consistent through recent history,” said Moody. “It’s the reason WorkSource has focused on training as a response to the current economic conditions. Educational attainment is one of the best predictors of success over a person’s lifetime.”
Moody said WorkSource encourages “everyone who can to consider going back to school: finishing a degree or certification or adding one that will make you more marketable.”
The national jobs report looks at military veterans as well, and their participation rates in the labor force declined with age. While just over half of all veterans 18 and older were in the workforce, those of both eras of the Gulf War participated at higher than 80 percent, while those of World War II, the Korean War and the Vietnam-era veterans participated at 36 percent.
The overall unemployment rate for veterans was 8 percent, including 11.5 percent for Gulf War – Era II veterans and 7.8 percent for Gulf War – Era I veterans.
The unemployment rate for older veterans was 6.9 percent.
A closer look at the 14.6 million people who are unemployed finds that a strong majority, 12.7 million, want to work fulltime. The remainder seeks part-time work.
Among industries, the highest rates of unemployment were 20.1 percent among construction workers, 12.3 percent for leisure and hospitality workers, 11.7 percent for agricultural workers, and just over 10 percent each for durable-goods manufacturing employees and professional and business services employees.
The number of long-term unemployed people, meaning they were jobless for 27 weeks or longer, remained at 6.8 million in June. They accounted for almost half, at 45.5 percent, of the unemployed.
As for those who don’t have jobs and quit looking, about 2.6 million are considered “marginally attached,” meaning they were not in the labor force, but wanted a job, were available for a job and had looked for a job the past year, but not within the four weeks preceding the survey.
Of those, 1.2 million were discouraged workers, and there were 414,000 more than the year before. These are workers not looking for work because they believe no jobs are available.
At least some undocumented immigrants are likely included in both of the two surveys the government uses to measure unemployment, although the U.S. Department of Labor says neither survey is designed to identify the legal status of workers.
U.S. JUNE UNEMPLOYMENT RATES
Source: U.S. Department of Labor Bureau of Labor Statistics
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