Black Unemployment Dips to 7-Year Low
The Black unemployment rate tumbled to 9.1 percent in July, the lowest rate for Black workers in seven years, according...
The Black unemployment rate tumbled to 9.1 percent in July, the lowest rate for Black workers in seven years, according to the latest jobs report from the U.S. Labor Department.
Even though the Black jobless rate has slowly ticked down to 2008 levels, some economists expressed concerns about the labor force participation rate, the measure of people who are employed or looking for jobs. The Black labor force participation rate decreased from 61.7 percent in June to 61.5 percent in July, which could indicate that the unemployment rate fell because some people simply gave up looking for work.
By comparison, the White unemployment rate and the labor force participation rate remained unchanged from June levels, 4.6 percent and 62.8 percent, respectively.
Valerie Wilson, an economist at the Economic Policy Institute, a Washington, D.C. based think tank focused on low- and middle-income families, found that Tennessee had the lowest Black jobless rate (6.9 percent) in the second quarter of 2015, which was almost the same as the highest White unemployment rate (7 percent in West Virginia).
Wilson also reported that the African American unemployment rate “was at or below its pre-recession level in eight states”: Michigan, Indian, Ohio, Tennessee, Mississippi, Texas, Illinois, and Missouri.
In the press release on her analysis of state unemployment rates by race and ethnicity, Wilson said that even though the Black unemployment rate has returned to pre-recession levels in those eight states, the states that are seeing improvements, with the exception of Texas, had the highest Black unemployment rates in the nation before the recession.
“African Americans are still unemployed at a higher rate than their white counterparts in almost every state,” Wilson said. “We need policies that look beyond simply reducing unemployment to pre-recession levels as an end goal.”
The national unemployment rate was 5.3 percent and 215,000 jobs were created in July.
Economic indicators for Black male workers over 20 years old followed the same pattern as Black workers in general. The Black male unemployment rate plunged to 8.8 percent from 9.5 percent the year before, but the participation rate also decreased from 67.6 percent in June to 67 percent in July.
On the other hand, Black female workers not only saw a slight increase in their month-over-month jobless rate as it edged up from 7.9 percent June to 8 percent in July, their labor force participation rate also increased from 62 percent to 62.1 percent, which could signal that Black women are entering the labor force and finding work.
In a statement about the jobs report, Rep. Robert C. “Bobby” Scott (D-Va.) said that the report showed that economy is still improving, growing and heading in the right direction.
“With the sixty-fifth consecutive month of private sector job growth, and the unemployment rate holding at 5.3 percent, our nation continues to recover from the 2008 economic recession,” said Scott. “Americans are finding more opportunities to get back to work, and put more money into their pockets.”
He also said, “While this is excellent news, our efforts to rebuild our economy are not complete until every person who wants a job is able to find a stable one.”
Connie Razza, the director of Strategic Research for the Center for Popular Democracy (CPD), a group focused on racial justice that describes itself as “pro-worker” and “pro-immigrant,” said that the latest job numbers show that flat wages and a sluggish recovery continue to threaten the livelihood of working families.
“Federal Reserve officials must look beyond the topline employment figures to determine whether the economy has truly recovered,” said Razza in a statement. “Even the state with the lowest rate of Black unemployment still has a rate equivalent to the state with the highest White unemployment rate.”
Razza continued: “With Black families still out of work and wage growth nowhere to be found, the economy is simply not ready for the Fed to slow it down.”
She warned the Federal Reserve against raising interest rates in 2015.
“While there are reports of the Fed staff suggesting one interest rate hike to 0.35 percent in the fourth quarter, compared to the [Federal Open Market Committee] forecasts of two hikes in the year achieving 0.65 percent, the Fed Up campaign remains convinced that the only humane, inclusive, and economically sound approach from the Fed would be to write off increasing interest rates for 2015, and instead to commit to wage targeting,” said Razza. “Resilient as our communities are, families are still hurting in this economy. The Federal Reserve can and should reduce inequalities in our economy.”
Source: The Dallas Weekly
The dollar is ticking down
“Jerome Powell’s most important qualification is that he served with Janet Yellen. His confirmation should depend on...
“Jerome Powell’s most important qualification is that he served with Janet Yellen. His confirmation should depend on his willingness to follow in Yellen’s footsteps on both monetary and regulatory policy,” Shawn Sebastian, co-director of Fed Up, a campaign from the Center for Popular Democracy, told the Washington Post.
Yellen nudges up traders' view on year-end United States rate hike
Yellen nudges up traders' view on year-end United States rate hike
Federal Reserve Chair Janet Yellen said Friday that the case for raising interest rates has strengthened in light of a...
Federal Reserve Chair Janet Yellen said Friday that the case for raising interest rates has strengthened in light of a solid job market and an improved outlook for the US economy and inflation.
At a gathering of central bankers from round the world in Jackson Hole, Wyoming, Yellen said improvements in the USA labor market and expectations for moderate economic growth have boosted the case for a rate rise, supporting what the rate futures market has been pricing in for some time. The gains were all but erased after Fed Vice Chairman Stanley Fischer said her remarks leave open the possibility of boosting rates in September.
The economy is "nearing" the Fed's goals of full employment and stable prices, share said.
With an interest rate hike unlikely in the immediate future, the dollar is struggling to gain traction.
Still Yellen declined to hint at whether the Fed might raise rates at its next policy meeting, September 20-21, or at its subsequent meetings in early November and mid-December.
The head of America's central bank said the case for an interest rate hike had strengthened but stopped short of indicating any timetable for a move.
"Yellen's speech at Jackson Hole today didn't necessarily offer much in the way of surprises", said OANDA senior market analyst Craig Erlam.
"New policy tools, which helped the Federal Reserve respond to the financial crisis and Great Recession, are likely to remain useful in dealing with future downturns", Yellen said. Although setting a hawkish tone and perhaps trying to sound balanced, Yellen did issue a few cautionary words, but for the most part, she indicated that more rate hikes were on the horizon.
Although US government data earlier on Friday showed the economy growing only sluggishly in the second quarter, Yellen said a lot of new jobs were being created and economic growth would likely continue at a moderate pace.
Yellen's words returned a measure of clarity on the intentions of U.S. monetary policymakers, who have been publicly at odds in recent months over the need to raise rates in the near-term. "On balance, it strengthened the case for a December move", said Bill Northey, chief investment officer for the private client group at U.S. Bank in Helena, Montana.
Prices for fed funds futures implied investors saw about even odds that the Fed will raise rates in December, largely unchanged from before Yellen's remarks.
The dollar eased to 100.47 yen from 100.55 yen Thursday in NY, while the euro nudged up to US$1.1291 from US$1.1281.
In a meeting, members of the groups Fed Up and the Center for Popular Democracy told Fed policymakers that the assessment that the USA was approaching full employment did not reflect life for many blacks and Latinos looking for work. The dollar's 5 percent loss this year reflects a dimming outlook for the US central bank to reduce stimulus and diverge from unprecedented easing in Europe and Asia.
In afternoon trading, the dollar index, which measures the greenback versus six major currencies, rose 0.8 percent at 95.563.
By Adam Cater
Source
Why the Fed should target underemployment, not unemployment, as it sets interest rates
Why the Fed should target underemployment, not unemployment, as it sets interest rates
Members of the Fed Up Coalition protest during the Jackson Hole economic symposium in 2015....
Members of the Fed Up Coalition protest during the Jackson Hole economic symposium in 2015.
See the photo here.
The Price of Defunding the Police
A new report fleshes out the controversial demand to cut police department budgets and reallocate those funds into...
A new report fleshes out the controversial demand to cut police department budgets and reallocate those funds into healthcare, housing, jobs, and schools. Will that make communities of color safer?
Read the full article here.
The Activists Who Helped Shut Down Trump’s CEO Councils
The CEOs who made up two White House advisory councils have fled like rats on a sinking ship. Their exodus — a dramatic...
The CEOs who made up two White House advisory councils have fled like rats on a sinking ship. Their exodus — a dramatic rebuke of Donald Trump — came within 48 hours of the incendiary August 15 press conference where the President praised some of the participants of last week’s white supremacist rampage in Charlottesville, Virginia.
But many of the CEOs on these councils had been under heavy pressure to disavow Trump’s agenda of hate and racism even before Charlottesville. That pressure came from grassroots activists.
The Center for Popular Democracy, Make The Road New York, New York Communities for Change, and several other immigrant and worker advocates had led that activist campaign, targeting the leaders of nine major corporations affiliated with the Trump administration. The campaign, working through a web site called Corporate Backers of Hate, detailed the connections between the nine companies and the Trump administration and encouraged people to send emails to both the CEOs involved and members of their corporate boards.
Read the full article here.
Tipped Workers Fight for Higher Wages
Amsterdam News - July 17, 2014, by Stephon Johnson - Last week, a new coalition of food delivery workers, low-wage...
Amsterdam News - July 17, 2014, by Stephon Johnson - Last week, a new coalition of food delivery workers, low-wage tipped workers and women’s rights leaders across New York called for an end to subminimum wages for tipped workers. This campaign begins right when Gov. Andrew Cuomo’s administration is preparing to appoint a Wage Board charged with recommending an increase in the minimum wage for tipped workers.
The broad coalition fighting for subminimum wage workers includes Make the Road New York, the Center for Popular Democracy, Fast Food Forward, the Labor-Religion Coalition, the National Employment Law Project, New York Communities for Change, the Restaurant Opportunities Center of New York, Restaurant Opportunities Centers United, Strong for All, United New York and other community groups.
On July 10, Domino’s delivery workers rallied outside of a Manhattan Domino’s restaurant to call for an end to subminimum wages for tipped workers, citing wage theft, and demanding an administrative wage order that requires companies to directly pay tipped workers the state’s minimum wage, with tips as an addition.
“The public might think we do well, but the reality is that many times we don’t even get a tip,” said Alfredo Franco, a tipped Domino’s delivery worker in New York City. “Delivery fees are often confused with a tip for the drivers. We never see a penny of that. Many of us have to work two or three jobs just to get by, sacrificing everything, including time with our families. We need a reliable income. The tipped [sub]minimum wage has to go.”
According to a report released on July 9 by the National Employment Law Project, a wage order eliminating the tipped subminimum wage would benefit close to 229,000 low-wage tipped workers in New York. Women make up more than 70 percent of the low-wage work force. The wage order would benefit working women and, according to the report, make progress in addressing the gender pay gap in New York.
Michael Stewart, executive director of United NY, released a statement championing the NELP’s report. “As New York faces one of the worst economic inequality crises in the nation, it should put an end to the subminimum wage for tipped workers that leaves so many of our neighbors living in extreme poverty,” said Stewart. “The minimum wage is already too low. Allowing employers to pay below it does further damage to workers and our economy.”
As a result of legislation signed by Cuomo last year, New York’s minimum wage is scheduled to go up to $9 an hour by Dec. 31, 2015, and the minimum wage for tipped food service workers is still stuck at $5 an hour, with tipped hotel workers earning slightly more at $5.65 an hour.
Zenaida Mendez, president of the National Organization for Women of New York State, said the gender pay gap needs to close, and no longer allowing the subminimum wage for tipped workers would help it along.
“The poverty rate for waitresses is three times the rate for the American workforce as a whole,” said Mendez. “For this reason, the National Organization for Women is seeking to eliminate the subminimum wage for tipped workers. This pay inequality must end.”
Source
I Was Detained in a Hellish Private Prison—And Wall Street Corporations Are Behind It All
I Was Detained in a Hellish Private Prison—And Wall Street Corporations Are Behind It All
As a report, “Bankrolling Oppression,” from the Center for Popular Democracy, Make the Road New York, New York...
As a report, “Bankrolling Oppression,” from the Center for Popular Democracy, Make the Road New York, New York Communities for Change, Enlace International, and The Strong Economy for All Coalition, uncovers, these corporations provide large loans and a revolving line of credit to private prison companies, which depend on debt to sustain their business model. JPMorgan alone holds $167 million in debt, which is 62 percent larger than the second biggest lender to these companies. And these companies’ shareholdings in GEO and CoreCivic have increased enormously since Trump’s election.
Read the full article here.
As the Stock Market Swings
Yet it’s hard to escape a vague sense of unease. The swoon that began a week before last was quickly attributed, at...
Yet it’s hard to escape a vague sense of unease. The swoon that began a week before last was quickly attributed, at least in part, to China’s economic problems. Just as quickly, many investors and policy makers concluded that China’s leaders would manage those problems in ways that would allow the global economy to chug along. But what if they don’t? A prolonged slowdown is more likely to provoke social unrest in China than in other developed economies, because stability there has been based on high growth rather than political and other institutional arrangements. The prospect of social unrest, in turn, raises economic and national-security concerns not raised by economic crises elsewhere.
Closer to home, market volatility has significantly reduced the odds that the Federal Reserve will begin to raise interest rates at its next meeting in mid-September. A delay is nothing to lament, because the still significant slack in the labor market would make an increase this year premature. The Fed has generally played down the potential impact of China and other international headwinds, while asserting that the negative effects of low oil prices and a strong dollar were likely to be temporary. But these forces are proving potent and long lasting — further reason to give the Fed pause.
Renewed stock market downdrafts could disrupt the economy, and the Fed’s plans, in other ways. The recovery in housing is an important gauge of economic health. But this year, the big increases in sales and prices have come at the high end of the market, where investment wealth is assumed to be more of a factor in the decision to buy than wages and salary. The very real possibility is that if the stock market falters again, so too will the housing market.
Economic fundamentals today are no different than they were before the market took a walk on the wild side. Inflation is well below the Fed’s target of 2 percent. Unemployment is still higher than it was before the last recession and wages have shown no signs of rising. The economy is being propelled forward by consumers and other advantages, and being held back by insufficient government spending and other disadvantages.
It all works out to an economy growing at 2.5 percent. At that modest pace, the United States cannot be of much help if other economies falter. But it can rebound from a market swoon, at least for now.
Source: New York Times
Why the Phrase 'Late Capitalism' Is Suddenly Everywhere
An investigation into a term that seems to perfectly capture the indignities and absurdities of the modern economy......
An investigation into a term that seems to perfectly capture the indignities and absurdities of the modern economy...
Read the ful article here.
5 days ago
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