Solid job growth in December helped cap a year which saw the unemployment rate for Black workers decline from 7.1% to 5.7%, according to U.S. Labor Department.
The unemployment rate among Black workers dropped more than the rate among white workers in 2022, but white workers still experience much lower levels of unemployment overall.
Over the course of 2022, the unemployment rate for Black workers declined from 7.1% to 5.7%, while unemployment for Latinx workers declined from 4.9% to 4.1%.
The unemployment rate for Asian workers fell from 3.8% a year ago to 2.4% in December 2022. The unemployment rate for white workers in December 2022 was 3.0% only slightly lower than the 3.2% rate a year before.
In December, the United States added 223,000 jobs, exceeding expectations by more than 21,000. The unemployment rate fell to 3.5%, its lowest level in 54 years. Overall, Black employment held steady at 5.7%, while the unemployment rate for Black men declined to 5.1% from 5.4% last month.
The Labor Dept. reported that Black women saw unemployment increase to 5.5% last month, up 0.3 percentage points from 5.2% in November.
Latino men saw unemployment rise to 4% in December, an increase of 0.4 percentage points from 3.6% the prior month. The overall unemployment rate ticked up to 4.1% from 4.0%. Unemployment among Latino women also ticked up to 3.7% from 3.6%.
Structural racism plays a role in the continuing gap in unemployment levels between Black and white workers, according to AFL-CIO chief economist William Spriggs, former chair of Howard University’s economics department.
“A lot of people find jobs, but a bigger share of those who went out looking didn’t. So, the Black unemployment rate has been going up because employers are still passing over Black workers,” Spriggs told CNBC.
“When you see Black workers struggling but the labor market doing well, that’s a sign of employers showing their preference. When you look at those numbers, it’s clear employers are saying, ‘We want workers, but not exactly.’”
Last year, 4.5 million new jobs were created. President Joe Biden stated that his first two years in office saw the highest levels of job growth in history.
“We are witnessing the transition to steady and stable growth that I have been predicting for months,” Biden said.
“We still have work to bring down inflation and help American families feeling the cost-of-living squeeze. However, we are on the right track.”
According to the White House, the unemployment rate for Black and Hispanic Americans has dropped to “near-record lows,” even though there is an unemployment disparity.
The unemployment rate for disabled people hit a new low, while hourly wages for all workers rose slightly in December after five months of increases in real wages.
Manufacturing employment increased by 8,000 jobs last month, bringing the total number of manufacturing jobs created since Biden’s election to 750,000.
In addition, administration officials say that people in their prime working years have continued to join the workforce faster than in previous recoveries.
“These historic job and unemployment gains are giving workers more power and breathing room for American families,” Biden said.
“Real wages are up in recent months, gas prices are down, and we are seeing welcome signs that inflation is coming down as well. It’s a good time to be an American worker.”
“We have more work to do, and we may face setbacks along the way,” the president said, “but it is clear that my economic strategy of growing the economy from the bottom up and middle out is working.”
“We are just getting started,” he said.
“This month, we are capping the cost of insulin for seniors at $35 per month. We are lowering energy and utility bills for Americans,” Biden said.
“And shovels are hitting the ground all around the country to rebuild our infrastructure, supply chains, and manufacturing here at home.
“That is how we will build an America in which we can all be proud, where working families have good jobs and more breathing room, and the economy grows from the bottom up and middle out over time.”
Stacy M. Brown, NNPA senior correspondent contributed to this report
