Statements
63
By June 2005 the economy as a whole seemed to be improving. The overall unemployment
rate dropped to 5.0 percent. However, the employment situation for blacks did not improve.
In fact, black unemployment actually increased to 10.3 percent, up from 10.2 percent the
previous year.
So, while white unemployment dropped from 5.0 percent to 4.3 percent and Hispanic
unemployment dropped from 6.9 percent to 5.8 percent, blacks saw their unemployment rate
increase.
Among the black unemployed are a disproportionate percentage of black high school
dropouts and graduates. In fact, during the 2003 recession, blacks aged 16–24 were nearly
two-and-a-half times more likely to be unemployed than white workers and, by a slight
margin black graduates, constituting 40 percent of the black population, were more adversely
affected than members of other groups. When job gains have occurred for blacks, it has been
disproportionately in dead end, low sector jobs.
Declining wages adversely impact low skill workers. A study published by the Pew Hispanic
Center in 2004 found significant employment gains for Hispanics in newly created low-wage
jobs although these gains were offset by reduced earnings for the newer immigrants who
were suffering a two-year decline in wages.
98
What accounts for high rates of black unemployment?
A few possible causes include:
a)
An oversupply of low-skilled workers
b)
Racial discrimination by employers
c)
Inadequate education and training
Let‘s look at each of these more closely. Dr. Steven Camarota has argued that the high black
and Hispanic unemployment rates can be partially attributed to the oversupply of low-skilled
immigrants arriving since 1990. These newcomers have increased the supply of labor by 25
percent for the kinds of jobs traditionally taken by high school dropouts and graduates.
99
While immigrant workers constitute 15 percent of the U.S. labor force, they are a whopping
40 percent of workers without high school diplomas.
100
Only 12 percent have greater than a
high school diploma.
101
As a consequence, the greatest competition occurs among people at
the margins of society, a group that includes poorly educated blacks, whites, and Hispanics
who compete against each other and against new immigrants for low-wage, low-skill jobs.
98
Rakesh Kochbar, ―Latino Labor Report, 2004: More Jobs for Immigrants but at Lower Wages,‖ Report of the
Pew Hispanic Center, 18.
99
Steven A. Camarota, Testimony for U.S. House Committee on Education and the Workforce, November 16,
2005.
100
Ibid.
101
Ibid.
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