Economic Indicators | Jobs and Unemployment

Black Unemployment Rate Dips Below 10 Percent in 11 of 24 States Measured in Second Quarter

Press release

In June 2015, the national unemployment rate was 5.3 percent, down 0.2 percentage points since the end of the first quarter in March 2015. Yet, even as the recovery moves ahead slowly, conditions vary greatly across states and across racial and ethnic groups. In June, state unemployment rates ranged from a high of 7.4 percent in West Virginia to a low of 2.6 percent in Nebraska. Nationally, African Americans had the highest unemployment rate, at 9.5 percent, followed by Latinos (6.6 percent), whites (4.6 percent), and Asians (3.8 percent).

State unemployment rates, by race and ethnicity

Following is an overview of racial unemployment rates and racial unemployment rate gaps by state for the second quarter of 2015. We provide this analysis on a quarterly basis in order to generate a sample size large enough to create reliable estimates of unemployment rates by race at the state level. We only report estimates for states where the sample size of these subgroups is large enough to create an accurate estimate.

Trends among whites

In the second quarter of 2015, the white unemployment rate was lowest in Nebraska (1.8 percent) and highest in West Virginia (7.0 percent), as shown in the interactive map, which presents state unemployment rates by race and ethnicity. Nebraska also had the lowest white unemployment rate in the first quarter of 2015, while West Virginia surpassed Tennessee as the state with the highest white unemployment rate.

Interactive Map

State unemployment rates, by race/ethnicity and overall, 2015Q2

State All White Black Hispanic Asian
California 6.3% 4.9% 11.1% 7.7% 4.9%
Alabama 6.0% 4.2% 10.9% NA NA
Alaska 6.7% 5.1% NA NA NA
Arizona 5.9% 4.1% NA 8.5% NA
Arkansas 5.7% 4.6% 11.3% NA NA
Colorado 4.3% 3.7% NA 5.5% NA
Connecticut 6.0% 4.2% NA 12.7% NA
Delaware 4.6% 3.8% 7.9% NA NA
District of Columbia 7.3% 2.8% 14.2% 5.4% NA
Florida 5.6% 4.3% 10.3% 5.9% NA
Georgia 6.2% 4.6% 10.1% 4.4% NA
Hawaii 4.1% 4.8% NA NA 3.2%
Idaho 3.9% 3.5% NA 5.6% NA
Illinois 6.0% 4.6% 11.5% 7.9% 4.8%
Indiana 5.1% 4.9% 7.8% NA NA
Iowa 3.8% 3.5% NA NA NA
Kansas 4.4% 4.4% NA 4.5% NA
Kentucky 5.1% 4.5% NA NA NA
Louisiana 6.5% 5.4% 9.2% NA NA
Maine 4.7% 4.4% NA NA NA
Maryland 5.3% 3.3% 8.6% 6.4% NA
Massachusetts 4.6% 3.9% 7.6% 9.1% NA
Michigan 5.5% 4.6% 10.5% NA NA
Minnesota 3.8% 2.8% NA NA NA
Mississippi 6.6% 5.1% 9.3% NA NA
Missouri 5.8% 5.2% 11.1% NA NA
Montana 3.9% 3.4% NA NA NA
Nebraska 2.6% 1.8% NA NA NA
Nevada 7.0% 5.4% NA 7.7% 5.2%
New Hampshire 3.8% 3.8% NA NA NA
New Jersey 6.4% 4.9% 13.0% 8.1% 2.5%
New Mexico 6.3% 4.8% NA 5.6% NA
New York 5.6% 4.4% 8.7% 7.7% 4.7%
North Carolina 5.7% 4.1% 9.3% 10.1% NA
North Dakota 3.1% 2.8% NA NA NA
Ohio 5.2% 4.3% 11.0% NA NA
Oklahoma 4.3% 3.6% NA 4.9% NA
Oregon 5.3% 5.3% NA 5.3% NA
Pennsylvania 5.4% 4.3% 11.2% 9.2% NA
Rhode Island 6.0% 4.8% NA 9.8% NA
South Carolina 6.7% 4.3% 12.8% NA NA
South Dakota 3.7% 2.3% NA NA NA
Tennessee 5.8% 5.7% 6.9% NA NA
Texas 4.2% 3.2% 7.3% 4.6% 3.0%
Utah 3.5% 3.1% NA 5.3% NA
Vermont 3.6% 3.6% NA NA NA
Virginia 4.9% 3.6% 8.7% 6.7% 3.3%
Washington 5.4% 5.0% NA 6.2% 3.7%
West Virginia 7.2% 7.0% NA NA NA
Wisconsin 4.5% 4.0% NA NA NA
Wyoming 4.1% 3.8% NA NA NA
ChartData Download data

The data below can be saved or copied directly into Excel.

Note: The map only reports unemployment rates for state subgroups with sample sizes large enough to create accurate estimates.

Source: EPI analysis of Bureau of Labor Statistics Local Area Unemployment Statistics (LAUS) data and Current Population Survey (CPS) data

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As shown in Table 1, which displays changes in state unemployment rates by race and ethnicity from the fourth quarter of 2007 to the second quarter of 2015, Louisiana is the state where the white unemployment rate remains most elevated above its pre-recession level—3.2 percentage points higher than in the fourth quarter of 2007. On the other hand, the white unemployment rate is at or below its pre-recession level in 14 states: Arkansas, Iowa, Kentucky, Maine, Massachusetts, Michigan, Minnesota, Nebraska, Ohio, Oregon, Rhode Island, Texas, Vermont, and Wisconsin. The white unemployment rate is within 1 percentage point of its pre-recession level in another 28 states.

Trends among African Americans

During the second quarter of 2015, the national African American unemployment rate dipped below 10 percent for the first time in seven years. The African American unemployment rate was lowest in Tennessee (6.9 percent), surpassing Virginia as the state with the lowest black unemployment rate (a distinction Virginia had held since the third quarter of 2014), and highest in the District of Columbia (14.2 percent). By way of comparison, although 6.9 percent is the lowest black unemployment rate in the country, it is essentially the same as the highest white unemployment rate (West Virginia’s). Tennessee was one of only 11 states where the African American unemployment rate was below 10 percent in the second quarter of 2015. As shown in Table 2, which displays the black–white and Hispanic–white unemployment rate ratios in the second quarter of 2015, Tennessee’s black–white unemployment rate gap was the smallest in the country. In that state, the black unemployment rate was 1.2 times the white rate, as both groups saw improvements in their unemployment rates over the last quarter. The largest gap was in the District of Columbia, where the black unemployment rate was 5.1 times the white rate.

With regard to recovery, the African American unemployment rate is at or below its pre-recession level in eight states: Michigan, Indiana, Ohio, Tennessee, Mississippi, Texas, Illinois, and Missouri. But this numerical recovery must be put in proper context because with the exception of Texas, each of these states also had black unemployment rates that were among the highest in the nation before the recession. The unemployment rate remains most elevated above its pre-recession level in Alabama (5.6 percentage points higher). Before the recession, the African American unemployment rate in Alabama was 5.3 percent—nearly half of what it is now.

Trends among Hispanics

The Hispanic unemployment rate was highest in Connecticut (12.7 percent) and lowest in Georgia (4.4 percent) for the second consecutive quarter. These states previously replaced Rhode Island and the District of Columbia as the places with the highest and lowest Hispanic unemployment rates, respectively.

The Hispanic unemployment rate is at or below its pre-recession level in Georgia and Texas. In Texas, the Hispanic unemployment rate was also lower than the national average in the fourth quarter of 2007, and remains so currently. The Hispanic unemployment rate is the same as the white rate in Georgia, Oregon, and Kansas, while the Hispanic–white unemployment rate gap is largest in Connecticut, where the Hispanic unemployment rate is 3.0 times the white rate.

Trends among Asians

The Asian unemployment rate was lowest in New Jersey (2.5 percent) and highest in Nevada (5.2 percent). The Asian unemployment rate remains most elevated above pre-recession levels in Nevada (2.1 percentage points). The Asian unemployment rate was within 1 percentage point of pre-recession levels in California, Hawaii, New Jersey, Texas, and Washington.

Methodology

The unemployment rate estimates in this issue brief are based on the Local Area Unemployment Statistics (LAUS) and the Current Population Survey (CPS) from the Bureau of Labor Statistics. The overall state unemployment rate is taken directly from the LAUS. CPS six-month ratios are applied to LAUS data to calculate the rates by race and ethnicity. For each state subgroup, we calculate the unemployment rate using the past six months of CPS data. We then find the ratio of this subgroup rate to the state unemployment rate using the same period of CPS data. This gives us an estimate of how the subgroup compares to the state overall.

While this methodology allows us to calculate unemployment-rate estimates at the state level by race by quarter, it is less precise at the national level than simply using the CPS. Thus, the national-level estimates may differ from direct CPS estimates.

In many states, the sample size of these subgroups is not large enough to create an accurate estimate of their unemployment rate. We only report data for groups which had, on average, a sample size of at least 700 in the labor force for each six-month period.

Table 1

Change in state unemployment rates by race and ethnicity, 2007Q4–2015Q2 (percentage points)

State White Black Hispanic Asian
USA 0.3 1.1 0.8 0.4
Alabama 1.2 5.6 NA NA
Alaska 0.6 NA NA NA
Arizona 1.0 NA 3.0 NA
Arkansas 0.0 2.5 NA NA
California 0.3 1.3 0.8 0.2
Colorado 0.2 NA 0.3 NA
Connecticut 0.6 NA 4.4 NA
Delaware 0.8 2.9 NA NA
District of Columbia 1.1 4.5 NA NA
Florida 0.4 4.2 0.4 NA
Georgia 1.3 2.0 -2.6 NA
Hawaii 0.9 NA NA 0.8
Idaho 0.5 NA NA NA
Illinois 0.3 -0.7 2.2 1.3
Indiana 0.7 -3.5 NA NA
Iowa 0.0 NA NA NA
Kansas 0.9 NA NA NA
Kentucky -0.6 NA NA NA
Louisiana 3.2 1.2 NA NA
Maine -0.3 NA NA NA
Maryland 0.6 3.2 4.5 NA
Massachusetts -0.6 NA NA NA
Michigan -1.5 -4.8 NA NA
Minnesota -1.4 NA NA NA
Mississippi 1.3 -1.5 NA NA
Missouri 0.7 -0.5 NA NA
Montana 0.2 NA NA NA
Nebraska -0.8 NA NA NA
Nevada 1.0 NA 1.0 2.1
New Hampshire 0.4 NA NA NA
New Jersey 1.0 4.6 2.9 0.2
New Mexico 1.9 NA 1.4 NA
New York 0.7 0.9 0.8 1.5
North Carolina 0.1 1.1 3.7 NA
North Dakota 0.8 NA NA NA
Ohio -0.3 -2.7 NA NA
Oklahoma 0.7 NA NA NA
Oregon 0.0 NA NA NA
Pennsylvania 0.2 4.2 NA NA
Rhode Island -0.4 NA 2.4 NA
South Carolina 0.7 2.0 NA NA
South Dakota 0.3 NA NA NA
Tennessee 1.2 -2.4 NA NA
Texas -0.3 -0.8 0.0 0.0
Utah 0.7 NA 1.6 NA
Vermont -0.4 NA NA NA
Virginia 0.7 3.6 3.1 NA
Washington 0.3 NA 0.6 0.1
West Virginia 2.9 NA NA NA
Wisconsin 0.0 NA NA NA
Wyoming 1.4 NA NA NA

Note: The table only reports data for state subgroups with sample sizes large enough to create accurate estimates.

Source: EPI analysis of Bureau of Labor Statistics Local Area Unemployment Statistics (LAUS) data and Current Population Survey (CPS) data

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Table 2

Black–white and Hispanic–white state unemployment rate ratios, 2015Q2

State Black–white ratio Hispanic–white ratio
USA 2.3 1.6
Alabama 2.6 NA
Alaska NA NA
Arizona NA 2.1
Arkansas 2.4 NA
California 2.3 1.6
Colorado NA 1.5
Connecticut NA 3.0
Delaware 2.1 NA
District of Columbia 5.1 1.9
Florida 2.4 1.4
Georgia 2.2 1.0
Hawaii NA NA
Idaho NA 1.6
Illinois 2.5 1.7
Indiana 1.6 NA
Iowa NA NA
Kansas NA 1.0
Kentucky NA NA
Louisiana 1.7 NA
Maine NA NA
Maryland 2.6 1.9
Massachusetts 1.9 2.3
Michigan 2.3 NA
Minnesota NA NA
Mississippi 1.8 NA
Missouri 2.2 NA
Montana NA NA
Nebraska NA NA
Nevada NA 1.4
New Hampshire NA NA
New Jersey 2.6 1.6
New Mexico NA 1.2
New York 2.0 1.8
North Carolina 2.2 2.4
North Dakota NA NA
Ohio 2.6 NA
Oklahoma NA 1.4
Oregon NA 1.0
Pennsylvania 2.6 2.2
Rhode Island NA 2.0
South Carolina 3.0 NA
South Dakota NA NA
Tennessee 1.2 NA
Texas 2.3 1.4
Utah NA 1.7
Vermont NA NA
Virginia 2.4 1.8
Washington NA 1.2
West Virginia NA NA
Wisconsin NA NA
Wyoming NA NA

Note: The table only reports data for state subgroups with sample sizes large enough to create accurate estimates.

Source: EPI analysis of Bureau of Labor Statistics Local Area Unemployment Statistics (LAUS) data and Current Population Survey (CPS) data

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