UNEMPLOYMENT AND WAGE GROWTH

UNEMPLOYMENT BY STATE

The WSJ continues its coverage of unemployment (see Unemployment and Poverty in Cities.*). Ten states have unemployment rates under 4%.** (see table)  In addition:   Another 10 states have unemployment rates under 4.5% (not shown).    Quotes are in italics in the following discussion: Among [political battleground states], North Carolina posted the biggest drop in unemployment over the past year, with the rate falling a full percentage point to 4.7% in September.

 (Click on figure to enlarge)(For more states, see reference.)

Unemployment fell by eight-tenths of a point to 5.8% in both Nevada and West Virginia. It fell half a point in Georgia (5.1% in September), Michigan (4.6%) and Wisconsin(4.1%). It dropped fourth-tenths in Arizona (5.5%), Florida (4.7%) and New Hampshire(2.9%).
Meanwhile, the jobless rate rose eight-tenths of a point in Pennsylvania (5.7%), sixth-tenths in Iowa (4.2%) and two-tenths in Ohio (4.8%)**.

WAGE GAINS BY RACE

Though all races have shown sharp wage gains The recent gains mean the increase in earnings for blacks since the recession ended in mid-2009, 15.7%, is now outpacing the gain for whites, 13.3%, and Latinos, 15.5%. But bulk of the improvement for blacks and Latinos has occurred in the past two years.*** (see figure)

 (Click on figure to enlarge)

Despite recent gains, the pay gap between races is wide. Median weekly pay for blacks in the third quarter of 2016 was $685, versus $854 for whites and $632 for Latinos.  The data is  [SIC] consistent with the argument put forth by some economists that wage gains for minority groups tend to be most pronounced when the economy is near full employment.***  Looking at the figure above, it looks like Asians have had the most difficult recovery from the Great Recession.  The wage gains come alongside lower levels of unemployment and stronger labor-force participation among blacks.

* http://stopcontinentaldrift.blogspot.com/2016/10/unemployment-and-poverty-in-cities.html
** http://blogs.wsj.com/economics/2016/10/21/unemployment-fell-in-nine-of-12-swing-states-from-a-year-ago/?mod=djemRTE_h
*** http://blogs.wsj.com/economics/2016/10/20/black-workers-see-fastest-wage-growth-in-more-than-15-years/?mod=djemRTE_h