(ThyBlackMan.com) Hidden in the announcement of the recent Bureau of Labor Statistics (BLS) report on unemployment for October was the increase in the African American male and female unemployment rates. While the national rate dropped to 5.0 percent from 5.1 percent, the rates for black males and females ticked higher; black men ticked up to 9.2 percent from 8.9 percent and black women moved higher to 8.1 percent from 8.0 percent. However, black teenagers saw some respite in their draconian rate as it felled from 31.5 percent to 25.6 percent. The national rate for black unemployment held steady at 9.2 percent. In comparison, the white unemployment rate for the same period was 4.4 percent.
The talking heads on the cable television channels, especially the channels devoted to business heralded these numbers as being remarkably great, saying the national job market has now reached “full employment.” They emphatically felt interest rates which have been near 0 percent since the 2008 Great Recession should be raised at the next Federal Reserve Open Market Committee meeting (Fed) in December. Increasing interest rates tend to create layoffs and raise the unemployment rate as businesses seek to reduce their cost of doing business as money becomes more expensive.
When you consider the national economy created 271,000 jobs in October, which is above 250,000, a figure suggested by economists
as indicative of a healthy economic recovery; you can somewhat understand their optimism about the strength of this economy even though the African American unemployment rate fell short. Yet, if these unemployment and job creation numbers are so great, why isn’t anyone from the Obama administration taking victory laps? You would think Democratic candidates in this election cycle would be openly more embracing of the economic policies of Mr. Obama’s administration and the Democratic Party’s role as architects of this remarkable recovery. Yet, we see none of this.
We don’t see the kinds of reactions mentioned above because the actual function of informing the American public about the nation’s employment situation has been politicized. The objectivity and who is measured when it comes to being unemployed in the current statistical BLS report is the subject of much criticism. Even the Fed Chairwoman herself often refers to the “slack in the economy” when commenting about unemployment. In saying that, she is referring to the measurement of the available amount of labor that could be put to productive use in this economy. In other words, what is the true amount of idle laborers in our economy who want to work? Pinpointing that percentage is made difficult, if official BLS unemployment statistics are understated.
To understand exactly what I mean, go to the following link at the BLS web site and see for yourself the range of “Alternative Measurements of Unemployment” ( http://www.bls.gov/news.release/empsit.t15.htm ). As you will see, there are six categories and depending on which category is used, presidential administrations can manipulate “official” reported unemployment numbers for their own political purposes.
Since the Clinton administration, the category that has been used in statistically reporting unemployment rates is U-3. It was during Mr. Clinton’s administration that the redesign of the categories was done. When you read the description of who is measured when it comes to the unemployed, U-3 is not extensive and leaves a lot to be desired. U-3 measures the total unemployed as a percentage of the labor force. Currently, U-3 as mentioned earlier, is the official measurement of unemployment in the United States and places the October unemployment rate at 5.0 percent.
However, when the more extensive measurement of the U-6 category is used, a true and clearer picture of the nation’s unemployment situation emerges. U-6 measures the total unemployed, “plus” all persons marginally attached to the labor force, “plus” total employed part time for economic reasons, as a percent of the civilian labor force “plus” all persons marginally attached to the labor force (Note: Persons marginally attached to the labor force are those who currently are neither working nor looking for work but indicate that they want and are available for a job and have looked for work sometime in the past 12 months. Persons employed part time for economic reasons are those who want and are available for full-time work but have had to settle for a part-time schedule).
Knowledgeable and experienced people who follow these numbers see the U-6 category as being more reflective of the “real unemployment situation” of the U.S. economy. The national rate of unemployment for October when the U-6 category’s measurements are used is 9.8 percent; a far cry from the 5.0 percent we see reported by the media. If 9.8 percent is the official national rate of unemployment as many experts think, then the true national rate of African American unemployment is much higher; perhaps officially as high as 17.0 percent!
Now, you understand why there are no celebratory tours by this administration, no rush on behalf of political candidates to conclude the job market has reached “full employment” and the hesitancy of the Fed to raise interest rates in December. Nevertheless, I fully expect the Fed to raise interest rates in December due in part to political pressure. However, the added adverse hardship this increase will bring to an African American community already under significant economic pressure is unsettling. Additionally, when you see this kind of manipulation of factual statistics, it becomes clear the distrust of traditional and professional politicians at the national level is well deserved and has merit.
Staff Writer; James Davis
This talented brother is a graduate of Florida A. and M. University(FAMU), a former stockbroker, and a human rights activist who resides in Sanford, Florida. He was awarded the prestigious Governor Haydon Burns Scholarship to attend FAMU and while at FAMU was awarded the first Martin Luther King Scholarship. He is also author of three books, among them are “The Fix This Time,” Expanding Social Security Benefits to Create Jobs and Spur Demand( http://www.amazon.com/dp/B00MI3PD2M ) and “Hey…God’s Talking To You,” The Study Book ( http://www.amazon.com/dp/B00GYI3VQW ).
He can be reached through his blog @, (http://www.thefixthistime.com).
