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ECONOMY APPEARS TO BE IMPROVING; But When Will Black America Start to Benefit?

(November 5, 2009)

*The Commerce Department reported last week that the U.S. economy grew during the third quarter (July, August and September) signaling a possible end to the recession which has gripped the nation since December 2007.

The 3.5 percent expansion beat expectations and marked the first quarterly economic growth in over a year.

President Obama’s economic stimulus packages appear to be responsible for most of the growth. The business news website Bloomberg News said the gains were “propelled by stimulus-driven gains in consumer spending and home building.”

But when will Black America start to feel (in their pocketbooks) benefits from the expansion? Expert projections reviewed by Taylor Media Services suggest it may take another 6 to 12 months.

Historically, Blacks have lagged behind other population groups in the country when an economic expansion begins. The most recent figures (early October) from the Labor Department show the Black unemployment rate standing at 15.4 compared to an average 9.8 percent for the rest of the nation.

That rate may actually go higher before it starts to come down as employers remain cautious about hiring new people until they are sure an economic turnaround has begun.

We will get our first indication of whether employment has started to improve when the Labor Department releases its October unemployment numbers this coming Friday.

(Source: Taylor Media Services - www.freewebs.com/blacknewsjournal/)

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