Source: Fortune.com
Summary
The July jobs report showed a decline in the unemployment rate for Black women, but a closer look at the data reveals a more complex story. While the unemployment rate fell from 7.07% to 5.73%, employment among Black women actually decreased by 212,000, and their labor force participation rate dropped by 387,000. This suggests that the decline in unemployment rate may be due to workers leaving the labor force rather than finding jobs.
Our Reading
The numbers tell one story.
The unemployment rate can be misleading, as it only counts people actively looking for work. Black women’s employment and labor force participation rates are declining, despite a falling unemployment rate. This discrepancy suggests that the labor market is not as strong as the headline numbers suggest. The data is warning us about the dangers of aggregation and the need to look beyond the surface-level numbers.
The unemployment rate is only good news if more people are actually working.
Author: Evan Null
