5 Employment
Jobs as the Magic Bullet
In the early years of the Office of Economic Opportunity (OEO), many believed that providing jobs would effectively reduce poverty, though certain groups would need additional support. This idea persisted through the 1970s, even as intellectual circles began questioning it. Despite significant federal investments in job programs, amounting to over $76 billion from the mid-1960s to 1980, and enrolling around 32.6 million individuals, the effectiveness of these programs was mixed. Most funding focused on disadvantaged youth, particularly those aged 21 and younger. However, despite the vast resources and efforts directed to help, poverty rates among this priority group worsened, highlighting the complexity of addressing poverty beyond just providing jobs.
Black Unemployment Rates: A Peculiarly Localized Problem
Black youth unemployment has been a significant issue from the early 1950s to the late 1970s. Initially, black youths had similar unemployment rates to whites, but this changed in the late 1950s when the loss of agricultural jobs in the South heavily impacted them. By the early 1960s, the unemployment rate for black youths stabilized, but at a high level, causing concern among policymakers. While unemployment among older black job entrants improved during the Vietnam War, black youth unemployment sharply increased again in the late 1960s and continued rising through the 1970s. Notably, older black males experienced significant employment gains, contrasting with the younger age groups, which faced worsening unemployment rates, indicating a localized problem affecting younger blacks specifically.
Black Youth Versus White Youth: Losing Ground
Young black youths are facing higher unemployment rates compared to young whites, especially from the late 1960s, even with government programs meant to help them. The ratio of black to white unemployment for new job seekers shows that black youths did worse, even during good economic times and with major federal support for jobs and education. Many reasons, like competition or technology changes, do not fully explain why young blacks struggled while older black workers actually improved their job situations.
The Anomalous Plunge in Black Labor Force Participation
Labor force participation (LFP) is often overlooked in media compared to unemployment statistics, but it provides essential insight into the economy. While unemployment measures how many people are out of work, LFP reflects people's willingness and intention to work when opportunities arise. The Great Society reforms prioritized increasing LFP among disadvantaged groups, highlighting that many of the unemployed had lost hope in finding work, making it crucial to engage them back into the labor force.
Historically, LFP for black males was similar to that of white males up until the mid-1960s. However, starting in 1966, black male LFP began to decline significantly faster than that of white males, leading to a noticeable gap by the early 1970s. From 1954 to 1965, the reduction in LFP for black males was already larger than for whites. This unexpected and significant decline indicated a troubling trend of able-bodied men withdrawing from the labor market, particularly during a period of low unemployment overall.
The decline was most pronounced among younger black males, echoing patterns seen in unemployment rates. This group saw a more substantial drop in LFP compared to their white counterparts. There are two possible explanations for the fall in LFP: one is that the young black males were staying in school rather than entering the job market, and the other is that they became discouraged due to high unemployment rates. However, evidence suggests that increased school enrollment does not explain much of the LFP decline, especially since white males in similar age groups increased their participation even with more schooling.
On the other hand, while some discouraged young black males may have ceased job searching, this alone cannot account for the long-term trend. The participation rate for young black males actually decreased the most during economically strong times, which raises questions about the shifting motivations and opportunities within this demographic. Overall, the disparity between LFP rates for black and white males suggests a complex socio-economic issue that is not solely tied to education or short-term economic conditions.
A Question of Generations
The age breakdowns show a pattern where younger generations grow older and face different experiences in the labor market. Black males born after 1950 entered the workforce under different conditions than their older relatives. Despite positive changes like more training programs and better equal opportunity rules, young black men from the 1950s acted differently than older generations and their white peers. This change in behavior reflects a generational shift in how they approached work and their opportunities.
Escaping Stereotypes
Many stereotypes exist about unemployment, such as the idea that unemployed individuals are either lazy welfare recipients or constantly seeking work without success. However, these do not accurately reflect the reality of unemployment. In 1979, most unemployed people were young, often under 25, and half were teenagers looking for part-time jobs while attending school. Many had not lost previous jobs but were entering the workforce for the first time or returning after a break. This situation hindered their ability to gain essential skills and work experience.
Federal involvement in job training began in the 1960s with initiatives like the Area Redevelopment Act and the Manpower Development and Training Act, ultimately leading to a variety of programs aimed at helping disadvantaged individuals find work. These programs evolved over the years to include both skills training and direct employment opportunities for youth.
Jobs as the Magic Bullet
In the early years of the Office of Economic Opportunity (OEO), many believed that providing jobs would effectively reduce poverty, though certain groups would need additional support. This idea persisted through the 1970s, even as intellectual circles began questioning it. Despite significant federal investments in job programs, amounting to over $76 billion from the mid-1960s to 1980, and enrolling around 32.6 million individuals, the effectiveness of these programs was mixed. Most funding focused on disadvantaged youth, particularly those aged 21 and younger. However, despite the vast resources and efforts directed to help, poverty rates among this priority group worsened, highlighting the complexity of addressing poverty beyond just providing jobs.
Black Unemployment Rates: A Peculiarly Localized Problem
Black youth unemployment has been a significant issue from the early 1950s to the late 1970s. Initially, black youths had similar unemployment rates to whites, but this changed in the late 1950s when the loss of agricultural jobs in the South heavily impacted them. By the early 1960s, the unemployment rate for black youths stabilized, but at a high level, causing concern among policymakers. While unemployment among older black job entrants improved during the Vietnam War, black youth unemployment sharply increased again in the late 1960s and continued rising through the 1970s. Notably, older black males experienced significant employment gains, contrasting with the younger age groups, which faced worsening unemployment rates, indicating a localized problem affecting younger blacks specifically.
Black Youth Versus White Youth: Losing Ground
Young black youths are facing higher unemployment rates compared to young whites, especially from the late 1960s, even with government programs meant to help them. The ratio of black to white unemployment for new job seekers shows that black youths did worse, even during good economic times and with major federal support for jobs and education. Many reasons, like competition or technology changes, do not fully explain why young blacks struggled while older black workers actually improved their job situations.
The Anomalous Plunge in Black Labor Force Participation
Labor force participation (LFP) is often overlooked in media compared to unemployment statistics, but it provides essential insight into the economy. While unemployment measures how many people are out of work, LFP reflects people's willingness and intention to work when opportunities arise. The Great Society reforms prioritized increasing LFP among disadvantaged groups, highlighting that many of the unemployed had lost hope in finding work, making it crucial to engage them back into the labor force.
Historically, LFP for black males was similar to that of white males up until the mid-1960s. However, starting in 1966, black male LFP began to decline significantly faster than that of white males, leading to a noticeable gap by the early 1970s. From 1954 to 1965, the reduction in LFP for black males was already larger than for whites. This unexpected and significant decline indicated a troubling trend of able-bodied men withdrawing from the labor market, particularly during a period of low unemployment overall.
The decline was most pronounced among younger black males, echoing patterns seen in unemployment rates. This group saw a more substantial drop in LFP compared to their white counterparts. There are two possible explanations for the fall in LFP: one is that the young black males were staying in school rather than entering the job market, and the other is that they became discouraged due to high unemployment rates. However, evidence suggests that increased school enrollment does not explain much of the LFP decline, especially since white males in similar age groups increased their participation even with more schooling.
On the other hand, while some discouraged young black males may have ceased job searching, this alone cannot account for the long-term trend. The participation rate for young black males actually decreased the most during economically strong times, which raises questions about the shifting motivations and opportunities within this demographic. Overall, the disparity between LFP rates for black and white males suggests a complex socio-economic issue that is not solely tied to education or short-term economic conditions.
A Question of Generations
The age breakdowns show a pattern where younger generations grow older and face different experiences in the labor market. Black males born after 1950 entered the workforce under different conditions than their older relatives. Despite positive changes like more training programs and better equal opportunity rules, young black men from the 1950s acted differently than older generations and their white peers. This change in behavior reflects a generational shift in how they approached work and their opportunities.
Escaping Stereotypes
Many stereotypes exist about unemployment, such as the idea that unemployed individuals are either lazy welfare recipients or constantly seeking work without success. However, these do not accurately reflect the reality of unemployment. In 1979, most unemployed people were young, often under 25, and half were teenagers looking for part-time jobs while attending school. Many had not lost previous jobs but were entering the workforce for the first time or returning after a break. This situation hindered their ability to gain essential skills and work experience.
Federal involvement in job training began in the 1960s with initiatives like the Area Redevelopment Act and the Manpower Development and Training Act, ultimately leading to a variety of programs aimed at helping disadvantaged individuals find work. These programs evolved over the years to include both skills training and direct employment opportunities for youth.