Since January, women have lost 338,000 jobs, while men have added 183,000 jobs. As of June, the national unemployment rate stands at 4.1%. Yet, beneath the surface, concerning trends are rearing their heads for certain communities—most explicitly Black Americans, whose unemployment rate has reached 6.8%. That is the most since January 2022.
New jobs report, posted on [insert date] shows the U.S. economy added 147,000 jobs in June. Yet this picture is still one of recovery in the storm of adversity, extraordinary challenges and all. While this alternative data points to a period of sustained job creation, it sheds light on troubling gender disparities and a worrisome rise in long-term unemployment. The average length of unemployment jumped from 21.8 weeks to 23 weeks. It’s the third straight month that 23.3% of unemployed workers have been jobless for 27 weeks or more.
Of particular interest is the spike in unemployment of Black workers, which jumped from 6% to 6.8%. While the economy continues to recover, this dramatic increase highlights deep, ongoing inequities in the labor market. For Black Americans, the picture couldn’t be any more different in stark contrast to national labor force trends. Though male participation has gone up, their experiences vary greatly.
The other notable data point in the report is a modest drop in the average workweek. In June, it fell by a tenth of an hour, a move down to 34.2 hours. Manufacturing employment took it on the chin, giving up 7,000 jobs in the process. These changes bring into question the sustainability of sectors like construction and manufacturing within our nation’s economy.
We’re particularly pleased to see wage growth take center stage in this report. Average hourly earnings rose by a modest 0.2% in June, but we still have an impressive annual growth rate of 3.7%. What’s notable about this wage increase is that it’s not just a bump – it outpaces inflation. It gives workers added comfort, even as they continue to face the challenges of seeking quality, stable work.
Outside forces have played a role in creating the current labor market situation. Tariffs levied under 301s, Section 232s, and other administration policies have forced countless companies to put key decision-making processes—including hiring processes—on ice. This type of stagnation can exacerbate other pre-existing problems created by the labor market’s inequities.
This makes sense—over the past three years, the U.S. has experienced an unprecedented decline in the size of its foreign-born workforce. In just the last quarter, more than 1 million of them did so. This loss may deepen workforce shortages across industries that count on this demographic – the leading source of skilled labor – to fill their ranks.