Erika Eichelberger

Erika Eichelberger

Reporter

Erika Eichelberger is a reporter in Mother Jones' Washington bureau. She has also written for The NationThe Brooklyn Rail, and TomDispatch. Email her at eeichelberger [at] motherjones [dot] com. 

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July Jobs Report: More Deceptively Positive Numbers

| Fri Aug. 2, 2013 10:35 AM EDT

The economy added 162,000 jobs in July and the jobless rate fell to 7.4 percent, according to new numbers released Friday by the Labor Department. But the drop in unemployment is mostly due to the fact that fewer people were seeking work last month, and thus were not officially counted as unemployed by the government; the total share of Americans with jobs actually shrunk.

As in recent months, employment rose in low-wage jobs like retail and food services. Retail added 47,000 jobs in July, and jobs in food service and at bars increased by 38,000. Employment also edged upward in the financial sector and manufacturing. July was the 34th month in a row in which the economy gained jobs.

But the labor force participation rate—the total share of Americans who are working—declined from 63.5 percent to 63.4 percent. Here is a chart that the liberal nonprofit Center on Budget and Policy Priorities released recently showing how the drop in unemployment does not translate into a healthier workforce:

Ezra Klein and Evan Soltas explained why this is happening at the Washington Post Friday:

Unemployment has fallen 2.5 percent from its post-recession peak, but the share of working-age adults with jobs has barely budged….The popular (well, popular among depressed econ wonks) image of discouraged workers sighing and deleting their Monster.com account once and for all is wrong. The rate of labor force exit is actually lower than it was in the aftermath of the 2001 recession. It's labor force entry that's suffered.

In particular, it's suffered among women—and it's really suffered among young women—who are a lot less likely to enter the labor force than they were in 2002 and 2003.

That is, in certain ways, a more encouraging trend: Discouraged workers who leave the labor force typically see their skills erode. Young people who delay entry are often staying in school longer, gathering skills that will ultimately prove valuable to them (and student loan debt that will prove burdensome).

But that comforting possibility surely doesn't explain all of the drop in entry we’re seeing among younger people. And it doesn’t really explain any of the drop in entry we're seeing among older people.

If the US economy keeps adding jobs at the current rate, it will take about seven years to get back to the pre-recession jobs level, according to the Hamilton Project at the Brookings Institution.

That could be likely, given other economic indicators and expected policy. New numbers show that GDP growth was slower than expected in the second quarter of this year. Personal disposable income declined for the first quarter of the year, according to the most recent report, and average hourly earnings fell in June. Another budget impasse in Washington this fall may mean that sequestration cuts continue through this year and beyond. And the Federal Reserve could soon cut back on its economic stimulus measures given the recent superficially positive jobs numbers.

Charts: Racial Polarization Increasing in Higher Education

| Thu Aug. 1, 2013 2:16 PM EDT

College attendance rates for African-American and Latino students have been increasing steadily in recent years. But here's the bad news that comes along with that: those students are mostly attending non-selective four-year colleges and community colleges, while whites are increasingly attending prestigious colleges and universities, the Washington Post reports.

A study released Wednesday by the Georgetown University Center on Education and the Workforce found that between 1995 and 2009, college enrollment more than doubled for Latinos and jumped 73 percent for African Americans, while only increasing 15 percent for whites. During that period, 80 percent of white college freshman enrolled in the nation's top 468 colleges, while only 13 percent of Latinos and nine percent of African-Americans went to those selective four-year schools. More than two-thirds of African Americans and almost three-quarters of Hispanics went to non-selective schools. Look:

It's not because minority students are less qualified. Thirty percent of African-American and Hispanic students who had an A average in high school attend community colleges, compared with 22 percent of whites, according to the report, which says that unequal educational outcomes for minorities can be attributed to things like family income, and peer expectations, but also to simply not being white.

"The higher-education system is colorblind in theory but in fact operates, at least in part, as a systematic barrier to opportunity for many blacks and Hispanics, many of whom are college-qualified but tracked into overcrowded and under-funded colleges, where they are less likely to develop fully or to graduate," Anthony Carnevale, one of the report's authors, told the Post.

Here's how unequal college paths for whites and non-whites contributes to growing inequality in America, via the Post:

Students at the nation's top 468 colleges are the beneficiaries of much more spending—anywhere from two to five times as much as what is spent on instruction at community colleges or other schools without admissions requirements. And students at top schools are far more likely to graduate than students at other institutions, even when they are equally prepared, according to the report. In addition, graduates of top schools are far more likely than others to go on to graduate school.

The financial implications of those differences are huge: A worker with an advanced degree is expected to earn as much as $2.1 million more in his or her lifetime than a college dropout, the report said. Also, the report said graduates of selective colleges earn an average of $67,000 a year 10 years after graduation, about $18,000 a year more than their counterparts who graduate from non-selective schools.

The report's authors say that in order to combat growing racial polarization in higher education, more resources need to be directed to improve students' academic experiences at non-selective schools, which often struggle with over-crowded classrooms and outdated materials. The authors say that colleges and lawmakers should also do more to bring black and Hispanic students into top schools.

The report comes just as the Supreme Court recently dealt a blow to affirmative action. In June, the high court allowed affirmative action to survive, but made it harder to institute as part of the admissions process, ruling that schools must first prove there are "no workable race-neutral alternatives" to achieve diversity on campus.

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