{"id":150909,"date":"2024-01-05T13:29:10","date_gmt":"2024-01-05T18:29:10","guid":{"rendered":"https:\/\/ncrc.org\/?p=150909"},"modified":"2024-01-05T13:29:10","modified_gmt":"2024-01-05T18:29:10","slug":"2023-ends-with-a-strong-labor-market-for-black-workers-race-jobs-and-the-economy-update-for-december-2023","status":"publish","type":"post","link":"https:\/\/ncrc.org\/2023-ends-with-a-strong-labor-market-for-black-workers-race-jobs-and-the-economy-update-for-december-2023\/","title":{"rendered":"2023 Ends With A Strong Labor Market For Black Workers: Race, Jobs And The Economy Update For December 2023"},"content":{"rendered":"

The labor market continues to show strengths not seen in decades, with unemployment rates below the 4% threshold defined as \u201cfull employment\u201d for the past two years. This strong labor market has shrunk the historic racial disparities in topline jobless rates. The African American unemployment rate is now roughly 1.5 times that of Whites, down from a long-term trend of roughly doubling the White unemployment rate.<\/span><\/p>\n

The <\/span>Bureau of Labor Statistics (BLS) monthly jobs report<\/span><\/a> and the <\/span>ADP National Employment Report<\/span><\/a> provide a deep look into employment and income. The December BLS report has the unemployment rate at 3.5% for White workers, 5.2% for Black workers, 3.1% for Asian workers and 5.0% for Hispanic workers.<\/span><\/p>\n

In this edition of our <\/span>Race, Jobs and the Economy series<\/span><\/a>, we overview the most recent BLS and ADP jobs numbers alongside inflation data, and preview our upcoming work on Black wealth.<\/span><\/p>\n

Analysis of Topline Figures in January BLS Report<\/b><\/p>\n

The economy added 216,000 jobs in December, slightly below the 2023 average of 225,000 per month but smashing the consensus prediction of 158,000. Unemployment stayed unchanged at 3.7% in December.\u00a0<\/span><\/p>\n

The 0.6% reduction in the Black unemployment rate was the largest monthly drop in 2023 and is entirely attributed to Black men whose rate declined from 6.3% to 4.6%. It is also tied with last April\u2019s 4.6% as the lowest rate on record. This massive drop is due to the large numbers of Black men going from unemployed to employed \u2013 two statistical statuses tied only to those who are actively seeking work. The jump shows up in the broader employment-to-population ratio as well, which for Black men jumped from 64.9% to 66% in December. Industries that employ large numbers of Black workers had differing job growth in December: Public-sector employment rose while the trade and transportation sector shed jobs. Future reports can help determine if this observation is a peculiarity or a trend that will persist throughout 2024.<\/span><\/p>\n

Jobs & Sectoral Trends<\/b><\/p>\n

The industries with the largest employment gains were: government (+52,000), leisure and hospitality (+40,000), healthcare (+38,000), and social assistance (+21,000). While retail trade added 17,000 jobs, department stores lost 13,000 jobs, indicating that retailers scaled back this holiday season. On this latter point, the growth of holiday spending was <\/span>slower<\/span><\/a> than usual but still strong. There was a large increase in online shopping which can take away foot traffic and may explain the slow department store hiring.<\/span><\/p>\n

The report notes that unlike other major sectors, leisure and hospitality is still 1% below its pre-pandemic level. This is a concern because the industry is one of the largest in the economy and a major employer of women. The sector\u2019s lag helps explain why the economy fell short of the nearly 400,000 overall monthly jobs average witnessed in 2022.<\/span><\/p>\n

December was one of the rare months where the <\/span>ADP report<\/span><\/a> and BLS report came to similar conclusions. ADP reported 164,000 private sector jobs were created in December with similar industry gains compared to BLS. Chief Economist Nela Richardson noted that the labor market was returning to pre-pandemic hiring trends.<\/span><\/p>\n

Slowing Inflation<\/b><\/p>\n