Explaining Southern California's economy

Even if we can reduce unemployment, we'll still struggle with African-American joblessness

Brian Watt and Madeleine Brand reported today on the final stop of the Congressional Black Caucus' jobs tour, which took place in Los Angeles. As they point out, the unemployment rate among African-Americans is around 16 percent, far higher than the national rate of 9.1 percent. In California, the rate for African-Americans is over 20 percent, while the overall rate is 12 percent.

If you think about this, we really have two problems rolled up into one: in California, we urgently need to reduce high general unemployment; but we also need to address the the problem of black unemployment, which is always higher than the general level. This is from the Economic Policy Institute -- in January of 2008, almost a year before the financial crisis hit:

In the best of times, many African American communities are forced to tolerate levels of unemployment unseen in most white communities. The 2001 recession pushed the white annual unemployment rate up from a low of 3.5% in 2000 to a high of 5.2% in 2003. During the same period, the black unemployment rate shot up from 7.6% to 10.8%. National recessions take African Americans from a bad situation to a worse one....In 2007, the black unemployment rate was 8.3%. This figure is still above the pre-recession low and more than twice the white unemployment rate. Goldman Sachs estimates that a new recession would increase the national unemployment rate to 6.4% by 2009. For African Americans, the unemployment rate would be expected to rise to 11.0%.

Read More...