WASHINGTON, April 22, 2021 / PRNewswire / – The percentage of black Americans unable to find decent paid work has climbed to its highest level in six months, even as other segments of the population have seen marginal improvement, according to an analysis released today hui by the Ludwig Institute for Shared Economic Prosperity (LISEP).
In its monthly report on the real unemployment rate (TRU), LISEP determined that as of March, 31.8% of black workers are “functionally unemployed,” defined as seeking but unable to find full-time employment that raises them above the federal poverty line. This is an increase of 1.7 percentage points from February and the highest black URR rate since the 32.7% reported in September 2020.
This contrasts sharply with the official unemployment report released by the Bureau of Labor Statistics (BLS), which pegged the March black unemployment rate at 9.6%, an improvement of 0.3 percentage points from to February. One possible explanation for the disparity between the LISEP TRU and the unemployment rate reported by the BLS is that if more black workers find jobs, those new jobs are largely low-wage positions that fail to uplift workers. above the federal poverty line, according to LISEP. .
“We continue to see a huge gap between the reported economic figures and the reality for the majority of Americans,” said the president of LISEP Gene Ludwig. “Policymakers should not be fooled by a bullish stock market or what appears to be driving unemployment rates down. The economic crisis continues for so many American families.”
The overall TRU improved from February to March, from 25.1% to 24.4%, while the BLS rate also improved, from 6.2% to 6.0%. LISEP reports an improvement in the ERR for the other demographic groups: Whites (22.8%, vs. 23.0%); Hispanics (30.9% to 28.5%); men (20.8% to 20.3%); and women (30.0% to 29.3%).
“What these numbers show is a troubling trend towards an uneven economic recovery, with a quarter of the workforce still unable to find a job that will support a family,” Ludwig said. “The jobs package envisioned by Congress is a step in the right direction, because a sustainable recovery needs more than jobs – it needs quality jobs.”
When the new statistical measure was announced in October, LISEP published the white paper “Better measurement: the development of data on the“ real rate of unemployment ”as a basis for social and economic policy”. The document and methodology can be viewed here. LISEP issues TRU one to two weeks after the release of the BLS Unemployment Report, which takes place on the first Friday of each month. The TRU rate and supporting data are available on the LISEP website at http://www.lisep.org.
LISEP was established in 2019 by Ludwig and his wife, Dr. Carol Ludwig. LISEP’s mission is to improve the economic well-being of middle- and low-income Americans through research and education, and seeks to advance the dialogue around policy solutions to improve the well-being of all. Americans.
About Gene Ludwig
In addition to his role as president of LISEP, Gene Ludwig is the founder of the Promontory family of companies and of Canapi LLC, a financial technology venture capital fund. He is CEO of Promontory MortgagePath, a technology-based mortgage solutions and fulfillment company and President of Promontory Financial Group. Ludwig is the former Vice President and Chief Control Officer of Bankers Trust New York Corp., and was the US Comptroller of the Currency from 1993 to 1998. He is also the author of the book The endangered American dream, which studies the economic challenges facing low- and middle-income Americans. It was published in September 2020 by Disruption Books.
SOURCE Ludwig Institute for Shared Economic Prosperity