June 2, 2018

AP on Record-Low Black Jobless Rate: Employers Are ‘Taking Chances’ on the ‘Previously Ignored’

In his coverage of Friday morning’s stellar jobs report, the Associated Press’s Chris Rugaber came up with a couple of doozies aimed at curbing readers’ enthusiasm. The AP economics writer half-expected that employers would rein in their hiring over confrontational rhetoric President Donald Trump and other foreign leaders have recently engaged in over trade and tariffs. He also implausibly framed the record-low black unemployment rate of 5.9 percent merely as evidence that employers are just now finally “taking chances” with potential workers “they had previously ignored.”

Rugaber waited until his 19th paragraph to get around to introducing black unemployment, thereby treating it as less important than President Donald Trump’s protocol-breaking “Looking forward to seeing the employment numbers at 8:30 this morning” tweet (brought up in Paragraphs 10 through 14) posted an hour before the jobs report’s release.

He also presented the record-low rate in about the most negative way imaginable:

APonBlackUnempRate060118

“Ignored”? Good grief, man:

BlackUnempRate2000toMay2018

The black unemployment rate never fell below its previous 2000 low of 7.0 percent until five months ago.

Robust hiring of blacks has occurred since the beginning of 2017, but especially during the past 13 months. May’s black unemployment rate was 25 percent lower than it was in April 2017. During those 13 months, black employment has increased by 585,000. That’s a very disproportionate 26 percent of the 2.313 million Household Survey jobs added during that period. Roughly 12.6 percent of the total U.S. population is black.

Rugaber also failed to note that the Asian unemployment rate dropped to a record-low, microscopic 2.1 percent. That rate is low enough to lead one to question whether economists’ traditional definition of “full employment,” which has ranged from about 3.5 percent to 5.5 percent during the past 60 years, is too high. (5.5 percent was the rate Moody’s Mark Zandi suggested in early September 2014, perhaps in the interest of making the economy seem better than it really was ahead of that November’s congressional elections.)

Rugaber’s obsession over trade was present in both the headline and content of his pre-release narrative, where he predicted that Friday’s report would be strong “despite uncertainty caused by trade disputes,” and carried into his post-release report. Trade maneuvering bears watching, but the distance from the current strident bickering to steep, potentially economy-harming tariffs and trade wars is quite far.

Perhaps the press would be less obsessed with the trade issue if more business journalists had reported on all of what J.P. Morgan CEO Jamie Dimon, a longtime Democrat donor, said at an investor conference on Friday. Many press outlets took note of Dimon’s concern about trade — “I do think that this trade stuff is a negative” — but almost all of them missed his crucial point about the impact of last December’s U.S. corporate income-tax rate cut and its long-term impact on America’s trade position:

JamieDimonOnUScorpTaxRate060118

CNBC’s Rick Santelli understood the significance of Dimon’s statement, and brought it up (paraphrased, based on a colleague’s earlier tweet) after Friday afternoon’s market close:

Transcript:

RICK SANTELLI: Finally, the biggest thing of the day in my opinion, Jamie Dimon.

Here’s what he said: “Lower U.S. tax rates are making foreign competitors nervous about keeping up.”

You’re darned tootin’! And we talked about that when they were working on the tax rate. You either empower or you discourage. It’s about small businesses. They’re empowered. The rest of the globe? Not so much.

Of course they’re going to come around. Once again, the U.S. is going to turn the global market.

Cross-posted, with potential revisions, at NewsBusters.org.

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6 Comments

  1. The AP is also covering up the fact that illegal immigration is and was taking jobs from Blacks. It’s a racial issue in that the Democrat Party and their liberal elite friends disadvantaged Blacks for more than twenty years to get cheap labor into the country from south of the border. Liberal elites are racist and greedy, the proof is right there in front. Otherwise why would the AP cover up the reason why Black unemployment has coincidentally plummeted when Trump took office???? The only color that matters is that of money.

    I would remind everyone that we in the Conservative movement decried George W Bush’s continuation of lacks border enforcement from the Clinton Administration. The failure to build the fence when authorized by Congress is the proof that Democrats (and liberal Republicans) are racists since they knew illegal immigrants were taking jobs from Blacks. When you knowingly approve or condone a policy that results in racial effects against your own countrymen, that makes you a racist in fact. Please note that it is settled law for any employer who shows a pattern of racial disparity in hiring practices even coincidentally, how much more so when politicians allow it!!! Kanye West has become woke… Rep. Barbara Jordan was woke decades ago.

    Comment by dscott — June 3, 2018 @ 9:20 am

  2. And let’s not let it be forgotten that lowered corporate taxes were matched by increased income tax revenue from individual filers who became employed or got raises and bonuses from those very corporations. There was net wash in tax receipts benefiting the people at the bottom of the economy.

    Who gives a crap about the people on the bottom? Trump does by his actions. Democrats and liberals don’t by their raving cries against Trump’s tax cuts. Get Woke!

    Comment by dscott — June 3, 2018 @ 9:25 am

  3. Great point about immigration, esp illegal immigration. Also, how much better would these numbers be if H-1b and (esp for blue-collar/pink-collar jobs) H-2b visas were appropriately curbed?

    Comment by Tom — June 3, 2018 @ 9:28 am

  4. Here’s another proof of liberal racism:

    Automation reshapes national political debate

    https://www.axios.com/automation-reshapes-national-political-debate-7d349776-a2ea-445a-b2d5-f8a1104e5168.html

    Even before the technologies of the future come to fruition, they’re igniting ethical, economic and political debates at the Capitol and around the country. A quick look at the debates ahead:

    Universal basic income: This would provide a guaranteed cash benefit to the millions who could be put out of work by automation. “Silicon Valley is in the midst of a love affair with it, arguing that when robots come to take all of our jobs, we’re going to need stronger redistributive policies to help keep families afloat,” Annie Lowrey, who has a book on the subject coming July 10, wrote in New York magazine.

    Liberals are so racist that in the midst of 3.8% unemployment rate are now talking Universal Basic Income as a means to justify continue flooding the economy with illegals under the cover of blaming automation. Remember Obama tried to blame ATM’s for high unemployment at one point in an attempt to cover up for his lacks border enforcement and insistence of keeping illegals here.

    It’s a theme with these greedy jerks. Keeping people poor and disadvantaged is their end game. Universal basic income is the acceptance of slavery by the State, complete dependence with zero opportunity for upward mobility. This is just another ploy by the haves to keep down the have nots. Just like big business loves regulations because they kill off small competitors via compliance costs. It is small businesses who cut into their (big business) bottom line and keep them honest via competition. Sleazy greedy liberals.

    Comment by dscott — June 3, 2018 @ 9:53 am

  5. And we know liberals are talking out of both sides of their mouths because:

    US Fertility Rates Have Plummeted Into Uncharted Territory, And Nobody Knows Why

    https://www.sciencealert.com/us-birth-rate-hits-record-low-fertility-plummets-uncharted-territory-cdc-decline

    How can anyone be calling for Universal Basic Income from a dearth of jobs when in fact we are supposedly facing a demographic crisis of declining birth rates???? IF declining birth rates will cause a worker shortage then why all the sky is falling talk about automation is such a threat to talking jobs?

    Every time these people blabber about needing workers, we need to throw this back in their faces in addition to their racist policies.

    Comment by dscott — June 3, 2018 @ 10:04 am

  6. Big cos-little cos on regulation and Silicon Valley’s reax to automation is a great analogy.

    There is NO reason to believe that other types of jobs won’t appear to replace the ones lost to automation. Of course, retraining is an issue, but as Walter Williams pointed out many years ago, we once had 400,000 telephone operators. Now there are barely any. Other jobs appeared. Otherwise, we wouldn’t have record employment.

    Comment by Tom — June 3, 2018 @ 10:09 am

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