Demographics of the Labor Force in the US.

Analysis of Disproportionate Unemployment and Underemployment Among U.S. Ethnicities

The labor market in the United States has historically shown significant disparities across racial and ethnic lines, resulting in higher rates of unemployment and underemployment for marginalized groups. This phenomenon is not random; rather, it is sustained by deep-seated, systemic factors.

The most commonly cited pattern in U.S. labor data is the "two-to-one rule," which refers to the trend that the unemployment rate for Black or African American individuals is typically around twice the rate for White individuals, even during economic expansions.

For instance, while a national unemployment rate might hover near 4%, the rates for major ethnic groups often look like this:

Ethnic Group

Typical Unemployment Rate (Hypothetical Example)

White 3.5%. - Asian American 3.8%

Hispanic or Latino 5.5% - Black or African American 7.0%

This gap persists across educational levels. For example, a Black individual with a college degree often faces an unemployment rate comparable to a White individual with only a high school diploma.

The term underemployment addresses the issue of workers being employed in jobs that do not utilize their skills or education (e.g., a college graduate working in a minimum-wage service job) or who are working part-time but desire full-time employment.

Disparities in underemployment are often even greater than in unemployment. Black and Hispanic college graduates are significantly more likely than their White counterparts to be working in jobs below their educational attainment, which leads to reduced lifetime earnings and wealth accumulation.