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Young Money: Economy Rebounds In June, But Not For Black And Latino Youth

The economy added 287,000 jobs in June.

CREDIT: Pexels.

In June, the economy rebounded from a worrisome May, adding 287,000 jobs (compared to just 38,000 jobs added in May). Still, the unemployment rates increased slightly: the national unemployment rate rose to 4.9 percent, and the youth unemployment rate (measuring those aged 16-24) climbed to 10.7 percent. These rates, however, are fairly consistent with 2016 year-to-date averages, which hover around 4.9 percent and 10.5 percent for the national and youth rates, respectively. Meanwhile, black and Latino youth continue to face significantly higher unemployment rates than white and Asian youth.

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The black youth unemployment rate reached 22.4 percent in June, marking the highest unemployment rate for black youth (and any youth) since June 2015. The black youth unemployment rate continues to remain approximately twice as high as the white youth unemployment rate, which was 10.6 percent in June 2016. This gap–the discrepancy between the white and black youth unemployment rate–was the largest it had been in a year in June, stretching 11.4 percentage points. Meanwhile, the Latino youth unemployment rate also jumped, from 10.2 percent in May to 12.3 percent in June. The Asian youth rate remained below average, at just 8.6 percent in June.

JobsDay_June2

 

The youth and national labor force participation rates remained largely unchanged in June: for youth 16-24, the LFPR dropped from 55.1 percent in May to 55 percent in June, and rose from 62.6 percent to 62.7 percent for all workers 16 and older. As the graph below shows, however, the youth labor force participation rate has yet to recover from the effects of the recession, while the overall rate was not nearly as severely impacted.

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