By Jeanette Brown
- In March, the national unemployment rate for Black workers decreased from 5.7% the prior month to 5%
- The unemployment rate for Black workers is higher than the national average, indicating persistent inequities in the nation’s economy
The Federal Reserve, “the Feds,” conducts the nation’s monetary policy to promote maximum employment, stable prices, and moderate long-term interest rates in the U.S. The reason the Feds are watching may differ from 2 Chainz, but one thing is for sure, they are. This is due to the fact that the unemployment rate for Black Americans just fell to an all-time low. Specifically, the national unemployment rate for Black workers decreased from 5.7% the prior month to 5% in March.
Why This Matters: A decrease in the national unemployment rate for Black workers signals a thriving job market despite a looming recession and banking disruptions.The Black unemployment rate has been double the white unemployment rate in the U.S. for years.
If we look at a state like Georgia, with its 33% Black population, the unemployment rate for Black workers is also higher than the overall state rate at 5.1%. These are economic data points that reflect the harsh reality of the racial income inequality gap.
However, there have been recent regulatory developments, including the Federal Trade Commission’s proposed ban on non-compete clauses in employment contracts. The FTC also wants to ban pay transparency in many local jurisdictions, along with new human capital disclosure mandates by the Securities and Exchange Commission. It’s possible these things will show an evolution in economics toward valuing workers.
Situational Awareness: The unemployment rate for Black workers is higher than the national average, indicating persistent inequities in the nation’s economy. With Fed officials set to raise interest rates at their May 2-3 meeting, we can see how decreasing unemployment and regulatory developments is enough to maintain the racial income disparities.
CBX Vibe: “Feds Watching” 2 Chainz