Minorities in the Labor Force - Labor Force Participation And Unemployment

Participation in the labor force means that a person is either employed or actively seeking employment. Those who are not looking for work because they are "going to school" or "unable to work" are not considered part of the labor force. The labor force increases with long-term growth of the population. It responds to economic forces and social trends, and its size changes with the seasons.

To be classified as unemployed, a person must:

• Not have worked in the week specified for the survey.
• Have actively sought work sometime during the four weeks preceding the survey.
• Be currently available to take a suitable job.

In November 2005, 1.8 million (10.6%) African-Americans in the civilian labor force were unemployed, a proportion more than 2.5 times higher than the white population. (See Table 4.1.) Among Hispanics, 1.2 million (6%) Hispanics in the civilian labor force were unemployed. (See Table 4.2.) The lowest unemployment rate was among Asians and Pacific Islanders. Approximately 239,000 (3.6%) Asians and Pacific Islanders in the civilian labor force were unemployed in November 2005. (See Table 4.1.)

African-Americans

Historically, African-American workers have participated in the labor force in larger proportions than whites, primarily because African-American women were more likely to be working than their white counterparts. The increased entry of white women into the labor force since the 1970s, however, has narrowed the gap between the two races. The U.S. Department of Labor (February 2003, http://www.bls.gov/webapps/legacy/cpsatab2.htm) reports that in 1972 twenty-six million (42.7%) white women participated in the labor force, compared with 3.6 million (51.2%) African-American women. By November 2005, 53.1 million (59.9%) white women over age twenty were in the civilian labor force, which was still proportionately lower than the 8.7 million (64.9%) African-American women over age twenty who participated in the labor force. (See Table 4.1.)

Conversely, the labor force participation rate of African-American men twenty years and older has declined since the 1970s. According to the Department of Labor (February 2003, http://www.bls.gov/webapps/legacy/cpsatab2.htm), in 1972, 4.4 million (78.5%) African-American men twenty years and older were employed; in 2005 7.6 million were employed (dropping the rate to 70.3%). In comparison, 63.8 million (76.1%) white men twenty years and older were in the civilian labor force in 2005. The overall participation rate for all African-Americans (men and women) was 64.1% (17.1 million) in 2005, compared with 66.3% (122.8 million) among all whites. (See Table 4.1.)

Although unemployment rates rise and fall with the strength of the economy, for several decades the unemployment rates for African-Americans have run twice as high than for whites. Often having fewer marketable skills and less education than whites, African-Americans are more likely to remain unemployed for longer periods, especially during a recession. As a result, they are more likely to be labeled as "long-term unemployed" (those without work for at least twenty-seven weeks).

In November 2005 the unemployment rate for African-American men twenty years and older (705,000, 9.3%) was nearly triple that of white men (2.3 million, 3.7%) in the same age group. African-American women age twenty and older (791,000, 9.1%) had more than twice the unemployment rate of white women twenty years and older (2.1 million, 3.9%). (See Table 4.1.)

Given the difficulties many African-Americans encounter when trying to find employment, many of them have stopped looking for jobs because they do not think they can find them. In this case they are classified as "discouraged workers" (people not in the labor force who want jobs but have stopped looking for them). Discouraged workers are not included among the unemployment figures.

Hispanic Americans

The U.S. Department of Labor's Bureau of Labor Statistics (BLS) began maintaining annual employment data on Hispanics in 1973. In November 2005, 20.2 million (68.4%) Hispanics were employed or actively looking for work. (See Table 4.2.) As of the fourth quarter of 2005 Mexican Americans had the highest overall participation rate (12.8 million, 68.7%), followed by Cuban Americans (792,000, 62.6%) and Puerto Ricans (1.6 million, 62%). Men twenty years and older in all three groups had a much higher labor force participation rate than did women of the same age. Among Mexican Americans, 7.4 million (85.8%) men and 4.5 million (56.5%) women participated in the labor force; among Cuban Americans, 439,000 (74.9%) men and 322,000 (52.8%) women participated in the labor force; and among Puerto Ricans, 841,000 (74.8%) men and 712,000 (56.1%) women participated in the labor force. (See Table 4.3.)

The unemployment rate for Hispanics in November 2005 was 6% (1.2 million). (See Table 4.2.) The unemployment rate varies among Hispanic people depending on country of origin. In the fourth quarter of 2005 the Puerto Rican-origin population had the highest rate of unemployment at 7% (115,000). Mexican Americans had an unemployment rate of 6.2% (816,000), and Cuban Americans had the lowest rate of unemployment at 3% (24,000). (See Table 4.3.)

Asians and Pacific Islanders

In November 2005, 6.6 million (66.1%) Asians and Pacific Islanders age sixteen and over were in the civilian labor force. (See Table 4.1.) In 2004, 2.8 million (59.5%) Asian-American women and 3.3 million (78.4%) Asian-American men age twenty and older were in the labor force. A higher percentage of Asian-American men age TABLE 4.1 Employment status of the civilian population by race, sex, and age, 2004–05twenty and older were participating in the labor force than either white men (62.9 million, 76.2%) or African-American men (7.4 million, 70.9%). However, a lower percentage of Asian-American women age twenty and older were participating in the labor force than either white women (52.2 million, 59.7%) or African-American women (8.5 million, 64.2%). (See Table 4.4.)

TABLE 4.1
Employment status of the civilian population by race, sex, and age, 2004–05
[Numbers in thousands]
Employment status, race, sex, and age	Not seasonally adjusted			Seasonally adjusteda
	Nov. 2004	Oct. 2005	Nov. 2005	Nov. 2004	July 2005	Aug. 2005	Sept. 2005	Oct. 2005	Nov. 2005
White
Civilian noninstitutional population	183,340	185,028	185,187	183,340	184,490	184,669	184,851	185,028	185,187
Civilian labor force	121,590	122,900	122,880	121,606	122,383	122,668	122,817	122,797	122,839
Participation rate	66.3	66.4	66.4	66.3	66.3	66.4	66.4	66.4	66.3
Employed	116,247	117,898	117,921	115,966	117,149	117,471	117,317	117,356	117,580
Employment-population ratio	63.4	63.7	63.7	63.3	63.5	63.6	63.5	63.4	63.5
Unemployed	5,342	5,002	4,959	5,640	5,234	5,197	5,500	5,441	5,259
Unemployment rate	4.4	4.1	4.0	4.6	4.3	4.2	4.5	4.4	4.3
Not in labor force	61,751	62,128	62,307	61,735	62,107	62,001	62,034	62,231	62,348
Men, 20 years and over
Civilian labor force	63,264	64,041	63,896	63,225	63,700	63,894	63,824	63,903	63,834
Participation rate	76.2	76.4	76.1	76.2	76.2	76.4	76.2	76.2	76.1
Employed	60,742	61,871	61,674	60,565	61,353	61,510	61,248	61,457	61,488
Employment-population ratio	73.2	73.8	73.5	73.0	73.4	73.5	73.1	73.3	73.3
Unemployed	2,522	2,170	2,223	2,660	2,346	2,384	2,576	2,446	2,346
Unemployment rate	4.0	3.4	3.5	4.2	3.7	3.7	4.0	3.8	3.7
Women, 20 years and over
Civilian labor force	52,587	53,164	53,238	52,443	52,757	52,762	52,973	52,990	53,056
Participation rate	59.9	60.1	60.1	59.8	59.8	59.8	59.9	59.9	59.9
Employed	50,585	51,090	51,292	50,318	50,674	50,781	50,850	50,836	50,972
Employment-population ratio	57.7	57.8	58.0	57.4	57.4	57.5	57.5	57.5	57.6
Unemployed	2,002	2,074	1,946	2,125	2,083	1,981	2,123	2,154	2,084
Unemployment rate	3.8	3.9	3.7	4.1	3.9	3.8	4.0	4.1	3.9
Both sexes, 16 to 19 years
Civilian labor force	5,738	5,696	5,746	5,938	5,926	6,012	6,020	5,904	5,949
Participation rate	45.5	44.8	45.1	47.0	46.7	47.3	47.3	46.4	46.7
Employed	4,920	4,937	4,955	5,083	5,121	5,181	5,219	5,063	5,121
Employment-population ratio	39.0	38.8	38.9	40.3	40.4	40.8	41.0	39.8	40.2
Unemployed	818	758	791	855	805	832	801	841	828
Unemployment rate	14.3	13.3	13.8	14.4	13.6	13.8	13.3	14.2	13.9
Black or African American
Civilian noninstitutional population	26,239	26,663	26,705	26,239	26,526	26,572	26,618	26,663	26,705
Civilian labor force	16,814	17,255	17,197	16,728	17,190	17,154	17,087	17,158	17,124
Participation rate	64.1	64.7	64.4	63.8	64.8	64.6	64.2	64.4	64.1
Employed	15,029	15,742	15,395	14,913	15,561	15,499	15,480	15,591	15,302
Employment-population ratio	57.3	59.0	57.6	56.8	58.7	58.3	58.2	58.5	57.3
Unemployed	1,784	1,512	1,802	1,814	1,628	1,655	1,607	1,567	1,823
Unemployment rate	10.6	8.8	10.5	10.8	9.5	9.6	9.4	9.1	10.6
Not in labor force	9,425	9,408	9,509	9,512	9,336	9,417	9,531	9,505	9,581
Men, 20 years and over
Civilian labor force	7,544	7,732	7,634	7,485	7,765	7,739	7,680	7,673	7,551
Participation rate	71.6	72.1	71.1	71.0	72.8	72.4	71.8	71.6	70.3
Employed	6,757	7,107	6,910	6,697	7,116	7,077	7,017	7,022	6,846
Employment-population ratio	64.1	66.3	64.3	63.5	66.7	66.2	65.6	65.5	63.7
Unemployed	788	625	724	788	650	662	664	650	705
Unemployment rate	10.4	8.1	9.5	10.5	8.4	8.6	8.6	8.5	9.3
Women, 20 years and over
Civilian labor force	8,471	8,779	8,735	8,438	8,609	8,604	8,674	8,728	8,732
Participation rate	63.9	65.3	64.9	63.6	64.3	64.2	64.6	64.9	64.9
Employed	7,719	8,123	7,960	7,675	7,900	7,902	7,970	8,060	7,941
Employment-population ratio	58.2	60.4	59.2	57.9	59.0	59.0	59.4	60.0	59.0
Unemployed	752	655	775	763	709	702	704	668	791
Unemployment rate	8.9	7.5	8.9	9.0	8.2	8.2	8.1	7.6	9.1

Unemploymet figures for Asians and Pacific Islanders are similar to those for non-Hispanic whites. In November 2005 the unemployment rate for Asians and Pacific Islanders was 3.6% (239,000), slightly lower than the 4% (4.9 million) figure for the white population. (See Table 4.1.) The low rate of unemployment among Asians and Pacific Islanders can be attributed, in part, to their TABLE 4.1 Employment status of the civilian population by race, sex, and age, 2004–05 [CONTINUED] "Table A-2. Employment Status of the Civilian Population by Race, Sex, and Age," in News Release, U.S. Department of Labor, Bureau of Labor Statistics, December 2, 2005, http://www.bls.gov/news.release/archives/empsit_12022005.pdf (accessed December 27, 2005)high educational attainment and their commitment to small family businesses.

TABLE 4.1
Employment status of the civilian population by race, sex, and age, 2004–05 [CONTINUED]
[Numbers in thousands]
Employment status, race, sex, and age	Not seasonally adjusted			Seasonally adjusteda
	Nov. 2004	Oct. 2005	Nov. 2005	Nov. 2004	July 2005	Aug. 2005	Sept. 2005	Oct. 2005	Nov. 2005
aThe population figures are not adjusted for seasonal variation; therefore, identical numbers appear in the unadjusted and seasonally adjusted columns.
bData not available.
SOURCE:"Table A-2. Employment Status of the Civilian Population by Race, Sex, and Age,"in News Release, U.S. Department of Labor, Bureau of Labor Statistics, December 2, 2005, http://www.bls.gov/news.release/archives/empsit_12022005.pdf (accessed December 27, 2005)
Both sexes, 16 to 19 years
Civilian labor force	799	744	827	804	816	810	732	757	841
Participation rate	32.7	29.7	32.9	33.0	32.9	32.6	29.4	30.3	33.5
Employed	554	512	524	542	545	521	493	508	515
Employment-population ratio	22.7	20.5	20.9	22.2	22.0	20.9	19.8	20.3	20.5
Unemployed	244	232	303	263	270	290	239	249	326
Unemployment rate	30.6	31.1	36.6	32.7	33.1	35.8	32.6	32.9	38.8
Asian
Civilian noninstutional population	9,655	9,931	10,044	b	b	b	b	b	b
Civilian labor force	6,416	6,591	6,642	b	b	b	b	b	b
Participation rate	66.5	66.4	66.1	b	b	b	b	b	b
Employed	6,149	6,387	6,403	b	b	b	b	b	b
Employment-population ratio	63.7	64.3	63.7	b	b	b	b	b	b
Unemployed	267	203	239	b	b	b	b	b	b
Unemployment rate	4.2	3.1	3.6	b	b	b	b	b	b
Not in labor force	3,239	3,340	3,403	b	b	b	b	b	b

Older Asians and Pacific Islanders tend to work longer because of the strong work ethic in Asian cultures and frequently because of economic need. Often they are employed in family businesses that do not offer early retirement packages. Depending on the time of their immigration and their work history, Asians and Pacific Islanders age sixty-five and older may not be entitled to adequate Social Security benefits. Also, some may have immigrated under circumstances that prevented them from retaining any wealth they might have accumulated in their native lands.

Native Americans and Alaska Natives

Gathering accurate statistical data on the labor force participation rates of Native Americans and Alaska Natives is difficult. They are often counted as "other" in BLS and Census Bureau data, making specific information hard to obtain. In addition, the concepts that guide the assessment of labor force participation nationally are considered to be inappropriate for Native American population groups. According to Judith Kleinfeld and John A. Kruse in "Native Americans in the Labor Force: Hunting for an Accurate Measure" (Monthly Labor Review, July 1983, http://www.bls.gov/opub/mlr/1982/07/rpt3full.pdf), because few jobs are available on many reservations, adults do not actively seek work—but to exclude these individuals from the statistics on the labor force results in a serious underestimation of unemployment of Native Americans.

Stella U. Ogunwole, in We the People: American Indians and Alaska Natives in the United States (February 2006, http://www.census.gov/prod/2006pubs/censr-28.pdf), reports that in 2000, 33.5% of Native Americans and Alaska Natives lived in "American Indian Areas"—that is, reservations or trust lands. In 2001 Indian Population and Labor Force Report (2001), the Bureau of Indian Affairs reports that in 2001 labor force participation rates varied greatly between reservations; the Yakama tribe had the highest unemployment rate (86%).

In most cases reservations do not generate jobs necessary to support Native American families. This is a major reason that the leadership on Native American reservations has been so willing to introduce or expand casino gambling on their reservations. According to Anne Merline McCulloch in "The Politics of Indian Gaming: Tribe/State Relations and American Federalism" (Publius, June 1994), the opening of casinos on reservation lands seems to have greatly improved employment and economic autonomy of Indian tribes while reducing dependence on welfare.