Unemployment in February Remains Elevated Across the Board
The table below shows the current unemployment rate and the unemployment rate in 2007, along with the ratio of those two values, for various demographic and occupational categories. One thing that is immediately obvious from the table is that there is substantial variation in unemployment rates across groups. This is always the case—it was true in 2007, before the recession began, and it is true now. But the main point of the table is that the unemployment rate is between 1.4 and 1.7 times as high now as it was six years ago for all age, education, occupation, gender, and racial and ethnic groups. Today’s sustained high unemployment relative to 2007, across all major groups, underscores the fact that the jobs crisis stems from a broad-based lack of demand. In particular, unemployment is not high because workers lack adequate education or skills; rather, a lack of demand for goods and services makes it unnecessary for employers to significantly ramp up hiring.
Weak demand for workers has kept wage growth very sluggish. Average hourly wages for all private-sector workers grew by 2.2% over the last year, which is just slightly higher than the rate of inflation. The economic link between high unemployment and low wage growth is straightforward; employers do not need to pay sizable wage increases to get and keep the workers they need when job opportunities are so weak that workers lack other options.
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