The persistent disparity in the labor market was highlighted by the rise in Black men's unemployment rate in January.

• In January, the unemployment rate for black males aged 20 and above increased from 4.6% in December to 5.3%.
• In January, white men had a jobless rate of 3.3%, which remained unchanged from the previous month.
• Federal data from the last quarter of 2023 shows that the median weekly pay of white workers aged 16 and above was nearly 20% higher than that of their Black counterparts.

The U.S. labor market has continued to perpetuate disparities, with black men losing ground in the workforce last month.

In January, the unemployment rate for Black males aged 20 and above was 5.3%, an increase from December's 4.6%, according to seasonally adjusted data from the U.S. Department of Labor. This group had the highest unemployment rate among Black, Hispanic, and white workers based on gender.

In January, white men had a jobless rate of 3.3%, which remained the same as December. Meanwhile, the overall unemployment rate remained unchanged at 3.7%.

The only tracked racial group to see unemployment increase from December was the Black community, highlighting the impact of job losses among Black men, as the rate for Black women remained unchanged at 4.8% between December and January.

While the increase in the unemployment rate for Black men is something to keep an eye on, it may be due to an anomaly in December's low data, according to Elise Gould, senior economist at the Economic Policy Institute. January's 5.3% rate is consistent with the average monthly rate for 2023, while December's 4.6% was the lowest rate seen in the year.

The tight labor market during the Covid-19 pandemic helped close the gap in work-related opportunities among Black and white men, as the difference in unemployment rates between them shrunk to 2 percentage points in January from 4.1 percentage points in the same month in 2019.

The number of employed Black men and the ratio of those with jobs to the total population compared to the beginning of 2023 indicates progress, she stated.

While Gould emphasized that the persistent disparities in employment and compensation underscore the necessity for additional social advancement, he also maintained that a robust job market would not guarantee equality.

According to federal data from the last quarter of 2023, the median weekly pay of white workers aged 16 and above was nearly 20% higher than that of their Black counterparts. This disparity increased to almost 25% when considering male workers alone.

A stronger economy can benefit historically disadvantaged groups more as they are often left out and take longer to recover during tough times, according to Gould. While full employment is crucial for these groups to see a positive impact in the labor market, it is not the only factor.

Unions were cited by her as a positive force for Black workers, with wage transparency among members helping to close any racial pay disparities.

‘A canary in the coal mine’

In January, the unemployment rates of white and Asian workers decreased to their lowest levels since late fall, while the unemployment rate of Hispanics remained unchanged at 5%, and the share of jobless Black workers increased to 5.3% from 5.2%.

Gould advised that it's crucial to assess long-term trends before making conclusions about month-to-month fluctuations, as exemplified by the unemployment rate of Black men.

Even when broader employment data indicate a "hot" labor market, Gould emphasized the importance of examining employment patterns among Black workers and other marginalized groups for identifying major economic trends.

She stated, "The canary in the coal mine represents the recession signs that are not visible in the data currently, but it's essential to monitor."