“That’s bad news and it’s reflective of a long history of racial discrimination, which we are still living with, he said.”
Black Ohioans accounted for 25.6% of statewide initial unemployment claims in June, according to data from the Ohio Department of Job and Family Services. This is up from 19.7% of claims in May and 14.8% in April.
Also in June, Black residents filed about 22.9% of new claims seeking unemployment compensation in Butler, Champaign, Clark, Greene, Miami, Montgomery and Warren counties, according to this newspaper’s analysis of state data.
Black workers in the seven-county region submitted 18.6% of first-time unemployment applications in May and 15.1% of new claims in April.
This excludes claims where no race was specified. The number of new claims has been declining for workers of all races and ethnicities, but remains at an elevated level.
Why is this happening?
Black workers tend to be employed in industries that have been harder hit by COVID-19 job losses, said Bruce Weinberg, professor of economics and public administration at the Ohio State University.
Black workers also are more likely to work in jobs that cannot be done remotely, he said, which is a big disadvantage when record numbers of people are having to work from home because of the virus.
Some industry sectors with sizable shares of Black workers include air transportation (20% Black), taxi and limo services (30%) and accommodation (17.9%), according to the U.S. Bureau of Labor Statistics.
Demand for all of these services fell off a cliff during the outbreak. Most business and leisure trips were cancelled, and many hotels and motels laid off staff since so many of their rooms were empty.
Weinberg said his research found that Black workers are more likely to lose jobs during this crisis, which could be interpreted as discrimination, and they are less likely to be re-employed after a job loss.
Governments employ a sizable share of Black workers, and unless federal lawmakers soon approve rescue funding, many cities and other jurisdictions across the region, state and country likely will have to lay off workers, said Schiller, with Policy Matters Ohio.
Black workers account for 21.4% of general government and support employees, federal labor data show.
Federal lawmakers should extend the enhanced unemployment benefits for many reasons, including that it will help Black workers and their families at a critical time, Schiller said.
The extra $600 per week expired at the end of July.
Schiller said the enhanced payments were masking the true economic pain of the massive layoffs from this crisis. When they are gone, Ohioans are going to struggle to pay their bills and will have to cut spending, he said.
Jobless rate
The U.S. Black unemployment rate skyrocketed during the pandemic, after recently falling to historically low levels.
Black unemployment peaked at 16.8% in May, before declining slightly to 15.4% in June, the U.S. Bureau of Labor Statistics said. It was 5.8% in February.
White unemployment peaked at 14.2% in April, before dropping to 10.1% in June, the federal data show. White unemployment was 3.1% in February.
In Ohio, the Black unemployment rate was 6.7% last year, compared to 4% for white Ohio workers, according to the bureau’s data.
Black Americans have a less of a financial cushion when emergencies arise, like a job loss.
They on average have less savings and wealth than their white counterparts. They also are far less likely to be homeowners.
Black households are less likely to have multiple earners in their homes, meaning a job loss or wage reduction can be devastating, according to the left-leaning Economic Policy Institute.
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