Association for Public Policy Analysis & Management

For low-wage and African American workers in particular, much is at stake in whether the economy genuinely reaches full employment. For example, evidence from the last four recoveries strongly suggests that on average the black unemployment rate and wages of black workers are more volatile with respect to aggregate labor market changes. However, publicly released data on employment, unemployment and wages provide only a partial picture of labor market trends and persistent underlying racial disparities in labor market outcomes. Trends in work hours only capture those that earned some wages over the course of a year. Similarly, only those who have looked for work during the past month are counted as unemployed. In this paper, we present a detailed demographic analysis of trends in work hours, unemployment and labor market disconnection. Our analysis provides important context for the kinds of full employment policies needed to eliminate racial disparities and improve economic outcomes for African Americans and low-wage workers. Additionally, it provides an evidence-based counter-narrative to negative stereotypes and misperceptions about low-wage and African American workers in particular.