Friday, February 26, 2016

[NJFAC] Black imprisonment effect on unemployment data

America has locked up so many black people it has warped our sense of reality, Guo, Wash. Post, 2/26/16
....  

The most recent report puts the white unemployment rate at around 4.5 percent. The black unemployment rate? About 8.8 percent.

But the economic picture for black Americans is far worse than those statistics indicate. The unemployment rate only measures people who are both living at home and actively looking for a job. The hitch: A lot of black men aren't living at home and can't look for jobs — because they're behind bars.

Though there are nearly 1.6 million Americans in state or federal prison, their absence is not accounted for in the figures that politicians and policymakers use to make decisions. As a result, we operate under a distorted picture of the nation's economic health.

There's no simple way to estimate the impact of mass incarceration on the jobs market. But here's a simple thought experiment. Imagine how the white and black unemployment rates would change if all the people in prison were added to the unemployment rolls.

According to a Wonkblog analysis of government statistics, about 1.6 percent of prime-age white men (25 to 54 years old) are institutionalized. If all those 590,000 people were recognized as unemployed, the unemployment rate for prime-age white men would increase from about 5 percent to 6.4 percent.

For prime-age black men, though, the unemployment rate would jump from 11 percent to 19 percent. That's because a far higher fraction of black men — 7.7 percent, or 580,000 people — are institutionalized.

    ....  June Zaccone