The Department of Labor released data on Friday showing that the labor market has worsened for Hispanic workers, with their unemployment rate increasing more than the national rate. In October, the overall unemployment rate rose 0.1% to 3.9%, the highest level since January 2022, contrary to expectations of it staying at 3.8%. Among Hispanic Americans, the jobless rate rose 0.2% to 4.8%.
Black Americans, who consistently have the highest unemployment rate in the country, saw a 0.1% increase in their unemployment rate to 5.8% last month. Their record low was 5.4% in October 2019. Julia Pollak, ZipRecruiter’s chief economist, explained that when overall averages decrease, there tends to be a larger impact on low-wage and less-educated workers who face barriers to employment.
Both Black and Hispanic Americans were disproportionately affected by business shutdowns during the Covid-19 pandemic, with Black workers experiencing a peak unemployment rate of 16.8% in 2020 and Hispanic workers reaching a high of 18.8% unemployment. The overall unemployment rate reached its highest point of 14.7% in April 2020.
Asian Americans, on the other hand, had the lowest jobless rate among different demographic groups but saw the largest percentage increase in unemployment. Their rate rose 0.3% to 3.1% in October.
The Federal Reserve, responsible for maintaining full employment, has intentionally slowed the economy to address inflation. Fed Chair Jerome Powell stated earlier this week that slower growth and a softer labor market are still “likely” necessary to control price pressures.
Additionally, the labor force participation rate for Hispanic workers decreased to 66.9% in October from 67.3% in September. Overall, the labor force participation rate slightly declined to 62.7%, with a contraction of 201,000 workers.
The labor market data highlights the ongoing challenges faced by different demographic groups and the need for continued efforts to address inequality in employment opportunities.
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