Library Index :: Minorities: Race and Ethnicity in America :: Minorities in the Labor Force - A Historical Perspective, Labor Force Participation And Unemployment, Discriminatory Employment Practices, Workforce Projections For 2010

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.

User Comments Add a comment…