Beautiful Virgin Islands

Tuesday, Jun 03, 2025

America's unemployment problem is much worse than it seems

America's unemployment problem is much worse than it seems

The national unemployment rate is masking how much some groups are still struggling in the pandemic economy. That's why the Federal Reserve looks at more than just the average jobless numbers to determine the nation's economic health.
"When we say maximum employment is a broad and inclusive goal, we don't only look at the headline numbers," Fed Chairman Jerome Powell said in his semi-annual testimony to the Senate Banking Committee on Tuesday.

Some groups are bearing the brunt of the pandemic fallout, facing unemployment rates still higher than the national average, Powell told the committee.

Although the national jobless rate dropped to 6.3% in January, unemployment is much lower for White workers — at 5.7% — than for other groups: The Black unemployment rate was 9.2% in January, and the Hispanic jobless rate was 8.6%, according to the Bureau of Labor Statistics.

The jobless rate for women over the age of 20 is the same as that for men: 6%. But this too doesn't tell the whole story. The pandemic has forced some women to drop out of the workforce to take on family care responsibilities, and they aren't counted in the unemployment rate.

Meanwhile, of the 140,000 jobs lost in the US in December, all were held by women.

Powell said he hoped these effects would be temporary, adding that it limited these workers' ability to fully contribute to the economy.

At the end of the day, "policies that bring the pandemic to an end would help," he said.

Senator Pat Toomey, the ranking member of the committee, said at the hearing's start that he would prefer that the Fed did not stray from its core objectives of price stability and full employment to focus on racial inequality and climate change.

And while Powell acknowledged that fiscal policy, and not the blunt tools of monetary policy, are more appropriate to target issues of inequality, he continued to stress that added support for some groups is still necessary.

"The economic recovery remains uneven and far from complete, and the path ahead is highly uncertain," Powell said in his prepared remarks to the committee.

"The single best thing [the Fed] can do about that is to keep monetary policy accommodative," he told the senators.

The Fed has repeatedly signaled that it won't raise interest rates as the unemployment situation remains grave and inflation is nowhere near its target of around 2%. But inflationary pressures could mount as the economy reopens fully this year. This expectation led to a rise in Treasury bond yields in recent days, which in turn caused some wobbles in the stock market. Bond prices and yields move inversely to one another.

Powell will return to Capitol Hill Wednesday to testify before the House Financial Services Committee.
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
China Accuses US of Violating Trade Truce
Panama Port Owner Balances US-China Pressures
France Implements Nationwide Outdoor Smoking Ban to Protect Children
German Chancellor Merz Keeps Putin Guessing on Missile Strategy
Mandelson Criticizes UK's 'Fetish' for Abandoning EU Regulations
British Fishing Boat Owner Fined €30,000 by French Authorities
Dutch government falls as far-right leader Wilders quits coalition
Harvard Urges US to Unfreeze Funds for Public Health Research
Businessman Mauled by Lion at Luxury Namibian Lodge
Researchers Consider New Destinations Beyond the U.S.
53-Year-Old Doctor Claims Biological Age of 23
Trump Struggles to Secure Trade Deals With China and Europe
Russia to Return 6,000 Corpses Under Ukraine Prisoner Swap Deal
Microsoft Lays Off Hundreds More Amid Restructuring
Harvey Weinstein’s Publicist Embraces Notoriety
Macron and Meloni Seek Unity Despite Tensions
Trump Administration Accused of Obstructing Deportation Cases
Newark Mayor Sues Over Arrest at Immigration Facility
Center-Left Candidate Projected to Win South Korean Presidency
Trump’s Tariffs Predicted to Stall Global Economic Growth
South Korea’s President-Elect Expected to Take Softer Line on Trump and North Korea
Trump’s China Strategy Remains a Geopolitical Puzzle
Ukraine Executes Long-Range Drone Strikes on Russian Airbases
Conservative Karol Nawrocki wins Poland’s presidential election
Study Identifies Potential Radicalization Risk Among Over One Million Muslims in Germany
Good news: Annalena Baerbock Elected President of the UN General Assembly
Apple Appeals EU Law Over User Data Sharing Requirements
South Africa: "First Black Bank" Collapses after Being Looted by Owners
Poland will now withdraw from the EU migration pact after pro-Trump nationalist wins Election
"That's Disgusting, Don’t Say It Again": The Trump Joke That Made the President Boil
Trump Cancels NASA Nominee Over Democratic Donations
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OnlyFans for Sale: From Lockdown Lifeline to Eight-Billion-Dollar Empire
Mayor’s Security Officer Implicated | Shocking New Details Emerge in NYC Kidnapping Case
Hegseth Warns of Potential Chinese Military Action Against Taiwan
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Jamie Dimon Warns U.S. Bond Market Faces Pressure from Rising Debt
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Taylor Swift Gains Ownership of Her First Six Albums
Bangkok Ranked World's Top City for Remote Work in 2025
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
×