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Who's unemployed? Men, blacks, teens © image100/Corbis

The Basics

Who's getting hit most by layoffs

Your likelihood of job loss depends a lot on your gender, your race and your age. And the outlook for displaced workers isn't good.

By MarketWatch

The current recession is hitting workers in just about every industry, but men are taking a much bigger hit than women.

The 2.3-percentage-point gap between men's June unemployment rate of 10.6% and women's 8.3% rate was just below May's 2.5-point gap, the largest since records started being kept in 1948. The gap first hit 2 points in March.

The overall unemployment rate rose to 9.5% in June, from 9.4% in May. The economy lost a more-than-expected 467,000 jobs in June. (See full story.)

"The gap between female and male unemployment has never been as large as it is now," said Sophia Koropeckyj, an economist with Moody's Economy.com.

It's not hard to see why. Two male-dominated industries -- construction and manufacturing -- account for about half of the 6 million jobs lost since the recession started in December 2007, and both industries started shedding jobs before that.

"Every industry is contracting, but these industries have taken the brunt," Koropeckyj said. Given that men account for 87% of workers in manufacturing and 71% in construction, it's not surprising that men's unemployment is rocketing past women's.

Health care, education jobs gaining

The only two private-sector industries to show a net increase in jobs from the start of the recession are health care and education -- and female workers are highly concentrated in both.

Health care logged a net gain of about 542,000 jobs from December 2007 through May, and private education showed a net gain of about 102,000 jobs in that period.

Eighty-one percent of health care workers are women, and 61% of workers in private education are women, Koropeckyj said. Also, government has shown a net job gain of 259,000 in that period, and 57% of government workers are women.

That's not to say women are escaping unscathed. Unemployment has skyrocketed for both sexes. Women's unemployment rate was 4.7% in January 2008; men's was 5.1%.

And lower-income and less-educated workers, no matter their sex, usually face steeper job losses than others in recessions, and this one's no different.

"It's not as if women are not suffering," said Eileen Appelbaum, an economist and visiting scholar at the Center for Economic and Policy Research and director of Rutgers University's Center for Women and Work.

"Less-educated women are certainly feeling it, but to the extent that they have been employed in (health care and education), they have not felt the brunt of it, at least so far," Appelbaum said.

That may change.

Heidi Shierholz, an economist at the Economic Policy Institute, said the net gain in health care jobs is slowing, partly because millions of Americans have lost not only their jobs but their employer-provided insurance and thus are ratcheting down their health care spending.

The education sector is also looking less solid, due mainly to state budget crises. "Education is losing jobs now," Shierholz said, though "not nearly as dramatically as other" industries.

Age- and race-based differences

The differences in unemployment rates are even more dramatic when broken down by race and age. For example, white men's unemployment rate in June was 9.5%, while black men's was 17.8%. For white women it was 8%, and for black women, 13.1%, according to the U.S. Labor Department's Bureau of Labor Statistics.

Teens have a harder time during recessions too. Here's a sampling of unemployment rates in June for various groups:

  • Black men 20 and older: 16.4%.

  • Black women 20 and older: 11.3%.

  • White men 20 and older: 9.2%.

  • White women 20 and older: 6.8%.

  • Black males age 16 to 19: 50%.

  • Black females age 16 to 19: 40.6%.

  • White males age 16 to 19: 26.5%.

  • White females age 16 to 19: 23.5%.

But these wide variations are not unique to this economic downturn. "So far, the especially high unemployment rates for teens, and the increase in the size of the unemployment rate gap between whites and blacks for both males and females is consistent with previous recessions and periods of high unemployment," said Ron Laschever, assistant professor of economics at the University of Illinois at Urbana-Champaign.

Teens get hit because they're less educated and are competing for jobs with older, more experienced people. But "educational differences do not completely explain the black-white unemployment rate gap," Laschever said. "Some studies show that part of the gap is correlated with residential segregation: Blacks, on average, are more likely to live in neighborhoods where there are fewer jobs available."

Continued: Outlook is murky at best

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Tuesday, July 14, 2009 6:45:26 AM
Demographics have little to do with the problem. Everyone is being hurt by unemployment, layoffs, closures, and bankruptcies. Statistics are great, glad the author took them, but you can skew numbers to represent anything you wish. Instead of numbers, replace the percentages with humans. Young and old, black and white, latinos and asians, we're all being hurt. We need jobs not welfare!
#2
Tuesday, July 14, 2009 7:04:55 AM
With the new socialist policys that have been forced upon us now,there will be more people on welfare.One way to increase those numbers is to tax and spend like never before.And that is exactly what is going on now.Things are going to get alot worse, like nothing we have seen in before in our history.
Tuesday, July 14, 2009 7:10:10 AM
The 20+ unemployment covers a large population. I am over 50 with over 25 years experience in my field and can't get an interview! The response to my application is usually 'we have filled the position with a person whose qualifications fit better'. In other words, we don't have to pay them for the experience. I always list "open" in salary requirements. I'm too young to retire (nothing left in the 401k anyway) and not old enough for Social Security. What happens to us when our unemployment benefits are gone with no options on the horizon? Got a bailout for "old, unemployable females" Obama?
Tuesday, July 14, 2009 7:24:56 AM

We've seen billions of dollars wasted on useless 'future' projects like green energy that won't result in jobs for years. If the current administration and Congress wanted to pass an unread 'emergency' stimulus bill it should have focused on cutting the unemployment rate NOW.

Last year, there were millions more jobs than are available now, but there are still millions of jobs open. Take the 'stimulus' passed back in February and re-balance the money to actually create jobs today. Cut taxes for business, give them tax breaks for hiring workers now, pass legislation that actually protects jobs and makes it expensive for employers to lay people off. Give the unemployed an ability to wage average for 3 years and let them have some of the taxes back that they paid in in the past to survive today. Unemployment isn't enough for someone that was making $100K.

Tuesday, July 14, 2009 7:36:27 AM

Here's a statistic they should be following: total payroll. This is an indication of not only how many people are employed but what they are getting paid. Inflation-adjusted wages have not been rising for some time and have been falling for the past few years. And, with the recession, worked hours are now the lowest it has been in 45 years.

 

The reality is that even professional people with college degrees are seeing their paychecks squeezed either because their contract rates have declined, their business income is down or because their bonuses and benefits have been reduced/eliminated.

 

The only people still making money are corporate executives, bankruptcy lawyers and the traders on Wall Street. And, they are making money by pulling it out of the pockets of workers and taxpayers.

 

Tuesday, July 14, 2009 7:38:07 AM

Here's a statistic they should be following: total payroll. This is an indication of not only how many people are employed but what they are getting paid. Inflation-adjusted wages have not been rising for some time and have been falling for the past few years. And, with the recession, worked hours are now the lowest it has been in 45 years.

 

The reality is that even professional people with college degrees are seeing their paychecks squeezed either because their contract rates have declined, their business income is down or because their bonuses and benefits have been reduced/eliminated.

 

The only people still making money are corporate executives, bankruptcy lawyers and the traders on Wall Street. And, they are making money by pulling it out of the pockets of workers and taxpayers.

 

Tuesday, July 14, 2009 7:39:54 AM
Its going to be a long long winter , when the temp summer jobs dry up and unemployment benifits continue to run out, I see nothing but even worse times ahead for us all. Hang on to your hats people the worst is yet to come. On that note "Have a nice day"Smile
Tuesday, July 14, 2009 8:14:28 AM

How come none of these news articles are about problem solving!

 

I mean real problem solving, not filling your head with wishful thinking! 

Tuesday, July 14, 2009 8:21:56 AM
The percentages listed don't seem correct, Do the reflect the difference in the size of the represented work forces? Or is it just a fudge of the numbers to make a story? 
#10
Tuesday, July 14, 2009 8:27:49 AM

I got hit by this depression July 1. My good job supporting manufacturing went to China. So I went to my State's Department of Economic Security web site to sign up for unemployment. I found out I will not be able to draw any.  It won't make sense to do the paper work. My point is not all job losses are reported and statistics are only as good as the sample data.

I think the economy is worse than reported. It will take longer to recover especially since we don't seem to want to really make anything in the United States anymore. I don't think a country that economic engine is fuelled by only stock brokers and insurance salesmen will be very robust.

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