UNEMPLOYMENT

The U.S. unemployment rate reached a post—World War II high of 9.7% in 1982. The U.S. Department of Labor's Bureau of Labor Statistics (BLS), which tracks such data in Employment and Earnings (January 2008, http://www.bls.gov/cps/cpsa2007.pdf), further notes that unemployment remained high at 9.6% in 1983 as a result of the most severe economic recession since the Great Depression of the 1930s. The unemployment rate then dropped, approaching 5% in 1989, but again began increasing, reaching 6.8% in 1991 and rising to 7.5% in 1992. As the economy began to improve, the rate fell to 6.9% in 1993. By 1998 the U.S. unemployment rate had dropped to 4.5% and in 2000 dropped to 4%, the lowest level in three decades.

With a creeping recession, unemployment once again began to rise in early 2001 and rose significantly following the terrorist attacks on the United States on September 11, 2001. In June 2003, 9.4 million people were out of work, and the national unemployment rate spiked to 6%. Between 2003 and early 2007 the unemployment rate generally declined. It then began to rise again in 2007. In January 2008 the unemployment rate was 4.9%. (See Figure 3.1.) The unemployment rate measures people without jobs who are looking for work and thus does not count workers who have lost their jobs and eventually stopped looking for work, such as those who have become discouraged or decided to retire.

FACTORS AFFECTING UNEMPLOYMENT RATES

Where You Live

Unemployment rates in the United States vary from state to state. In December 2007 the unemployment rate nationwide was 5%. (See Table 3.1.) Unemployment rates in some states, however, were at least one percentage point higher, including in Michigan (7.6%), Mississippi (6.8%), South Carolina (6.6%), Alaska (6.5%), California (6.1%), the District of Columbia (6.1%), and Ohio (6.0%). Other states with higher unemployment rates than the nationwide average included Arkansas (5.8%) and Nevada (5.8%).

On the other hand, some states had unemployment rates as much as two percentage points below the national average. Both Idaho and South Dakota had unemployment rates of only 3%. (See Table 3.1.) Wyoming (3.1%), Hawaii (3.2%), Nebraska (3.2%), Utah (3.2%), North Dakota (3.3%), and Virginia (3.5%) had unemployment rates one and a half percentage points or more below the national average. Other states with lower than average unemployment rates included Delaware (3.8%), Iowa (4%), Kansas (4.4%), Maryland (3.8%), Montana (3.6%), New Hampshire (3.6%), New Mexico (3.7%), Texas (4.5%), and Vermont (4%).

Metropolitan areas tend to have lower unemployment rates than states as a whole, indicating that unemployment is a bigger problem in rural areas. For example, notes the BLS in Metropolitan Area Employment and Unemployment: December 2007 (January 29, 2008, http://www.bls.gov/news.release/archives/metro_01292008.pdf), in December 2007 Mississippi had a high unemployment rate, at 6.8%; in the Mississippi city of Jackson, however, the unemployment rate was close to the national average, at 5.1%. South Carolina also had a high unemployment rate, at 6.6%, but the unemployment rate in the cities of Charleston (5%) and Greenville (5.5%) were much lower. The same held true in Alaska, where overall the unemployment rate was 6.5%. In Alaska's cities of Anchorage and Fairbanks, however, the unemployment rate was 5.7%, significantly lower than statewide. The exception to this rule is in Michigan. The unemployment rate in that state was 7.6%, but the unemployment rate in its two principal cities, Detroit (8%) and Flint (8.3%), was much higher. This is mainly due to the loss of industrial jobs in these once dominantly industrial cities.

The same pattern of lower unemployment rates in cities holds true for states with low unemployment rates as well. The BLS notes that the unemployment rate in Idaho in December 2007 was a low 3%; the unemployment rates of Boise (2.9%) and Idaho Falls (2.2%) were even lower. In South Dakota the unemployment rate of Rapid City matched that of the state as a whole (3%), but the unemployment rate of Sioux Falls was half a percentage point lower (2.5%). In Wyoming, where the unemployment rate of the state was 3.1%, the unemployment rate in Casper was 2.9%.

Age

Unemployment does not occur evenly in all occupations or sectors of society. Workers under twenty-five years of age are far more likely than older workers to be unemployed. The jobs held by younger workers are often more marginal, younger workers tend to have less education than older workers, and they leave their jobs more often than older workers. In addition, workers under age twenty-five also have less seniority to protect them against layoffs. These workers have less work experience than older workers as well, which can work against them when looking for a new job.

During 2007, for example, as noted by the BLS in Employment and Earnings, the unemployment rate among those sixteen years of age and older was greatest among sixteen- to nineteen-year-olds (15.7% of those in the labor force). It was higher for men in that age group (17.6%) than it was for women (13.8%). In contrast, the unemployment rate for men ages twenty to twenty-four years old was 8.9%, and for men ages twenty-five to fifty-four years it was only 3.7%. The unemployment rate for women ages twenty to twenty-four years was 7.3%, and for those ages twenty-five to fifty-four years it was only 3.8%.

Race, Gender, and Marital Status

Unemployment does not affect all demographic groups equally. Many African-Americans, for instance, work in occupations that have suffered as the American economy has changed from an industrial to a service economy, and, as in the overall unemployment picture, the youngest workers are particularly affected. In addition, African-Americans sometimes face discrimination in employment that can keep them from finding employment as quickly as members of other groups. According to the BLS in Employment and Earnings, African-American teenagers aged sixteen to nineteen experienced an unemployment rate of 29.4% in 2007, compared with an unemployment rate of 13.9% for white teenagers and 12.7% for Asian teens. African-American male teenagers (33.8%) were more likely to be unemployed in 2007 than were African-American female teenagers (25.3%), although the rates for both were very high.

Table 3.2 shows unemployment rates for men and women of different races and ethnicities. Among all ages, African-Americans and Hispanics were more likely than non-Hispanic whites or Asians to be unemployed. In 2007 African-American men age sixteen and older had an unemployment rate of 9.1%, while African-American women had an unemployment rate of 7.5%. Among Hispanics age sixteen and older, 5.3% of males and 5.9% of females were unemployed. In contrast, among non-Hispanic whites age sixteen and older, 4.2% of males and 4% of females were unemployed in 2007. Among Asians age sixteen and over, only 3.1% of males and 3.4% of females were unemployed. Among all men and women age sixteen and over, unemployment rates were similar in all ethnic groups except among African-Americans, where women were much less likely to be unemployed than were men in 2007.

Among men and women age twenty-five and over, unemployment rates for non-Hispanic whites were the same for men and women (3.3%). (See Table 3.2.) Among African-Americans, the unemployment rate for women was again lower than for men (5.8% and 6.6%, respectively). Among Asians and Hispanics, however, women age twenty-five and over were more likely to be unemployed than were men of the same age. Asian men had an unemployment rate of 2.7% in 2007, while Asian women had an unemployment rate of 3%. Hispanic men had an unemployment rate of 4.2%, while Hispanic women had an unemployment rate of 5.1%.

Marital status is also correlated with unemployment. A married person was much less likely to be unemployed than a single, widowed, or divorced individual in 2007. This observation held true across all races and ethnic groups. In 2007 single, never-married males aged sixteen and over had more than three times the unemployment rate of married males of the same age (8.8% and 2.5%, respectively). (See Table 3.2.) Widowed, divorced, or separated males (5.3%) had more than twice the unemployment rate of married men. Although only 2.4% of white, married men were unemployed in 2007, 7.8% of never-married white men and 4.9% of widowed, divorced, or separated white males were out of work. Among African-Americans, 4.3% of married men aged sixteen years and older were unemployed in 2007, compared with 7.5% of widowed, divorced, or separated men and 15% of never-married men.

The same correlation between marital status and employment was true for women. Although only 2.8% of married women age sixteen and over were unemployed in 2007, the unemployment rate of widowed, divorced, or separated women was 5%. Among never-married females, 7.2% were unemployed in 2007. (See Table 3.2.) This pattern held true across all races and ethnic groups. For example, never-married white women over the age of sixteen were markedly more likely to be out of work than married white women (6.3% and 2.6%, respectively), and never married African-American women were significantly more likely to be unemployed than married African-American women (10.8% and 4.3%, respectively).

Education and Unemployment

The more education an individual possesses, the less likely it is that he or she will be unemployed. In the Occupational Outlook Quarterly (“More Education: Lower Unemployment, Higher Pay,” Fall 2004, http://www.bls.gov/opub/ooq/2004/fall/oochart.pdf), the BLS theorizes that potential employers are more likely to hire more educated applicants because they see the ability to earn an academic degree as “an indicator of assets—such as organizational skills and aptitude—that a potential worker will bring to the job.”

According to the BLS in Employment and Earnings, the unemployment rate of the population dropped with educational attainment. In 2007 high school dropouts with no diploma had an unemployment rate of 7.1%, while people with a bachelor's, master's, professional, and doctoral degrees had an unemployment rate of only 2%. High school graduates with no college had an unemployment rate of 4.4%, while those with some college, but no degree, had an unemployment rate of 3.8%.

People who achieve graduate degrees have even lower unemployment rates than people who have completed bachelor's degrees. The BLS notes in its Current Population Survey (“Education Pays,” April 15, 2008, http://www.bls.gov/emp/emptab7.htm) that in 2007 the unemployment rate for those with bachelor's degrees was 2.2%. People with master's degrees had an unemployment rate of 1.8%, people with doctoral degrees had an unemployment rate of 1.4%, and people with a professional degree had an unemployment rate of 1.3%.

Occupations and Industries

Workers in some occupations are more susceptible to unemployment than workers in others. In general, occupations that require more education have lower unemployment rates than occupations that have only basic educational requirements. For example, in 2007 the unemployment rate for people employed in managerial and professional specialties (2.1%) was much lower than the rate for people employed in production, transportation, and material moving occupations (5.8%). (See Table 3.3.)

Within each occupational grouping, significant differences can exist. In natural resources, construction, and maintenance occupations, 6.3% of workers were unemployed overall. (See Table 3.3.) The unemployment rate was highest in the farming, fishing, and forestry occupations (8.5%), while the rate was quite low in the installation, maintenance, and repair occupations (3.4%). Even within the professional ranks, unemployment was comparatively high for those in arts, design, entertainment, sports, and media occupations (4.4%), while it was comparatively low among health care techs and practitioners (1.3%).

Gender also plays a role in variations of unemployment rates in different occupations. In 2007 women in sales occupations had an unemployment rate of 5.7%, compared with a rate of only 3.8% for men. (See Table 3.3.) Although women and men had similar unemployment rates in managerial and professional specialty fields, more female workers in production, transportation, and material moving occupations were out of work (7.3%) than their male counterparts (5.4%). Similarly, 10.4% of women workers in natural resources, construction, and maintenance occupations were unemployed in 2007, compared with only 6.1% of men in that category. It may be that because women traditionally did not work in these fields, at times of high unemployment, women are more likely to lose their jobs and be unable to find another.

Unemployment also varies by industry. The BLS breaks down nonagricultural private wage workers into eleven industry categories: mining, construction, manufacturing (durable and nondurable goods), wholesale and retail trade, transportation and utilities, information services, financial activities, professional and business services, education and health services, leisure and hospitality, and other services. According to the BLS in Employment and Earnings, workers in leisure and hospitality suffered from the highest unemployment rate in 2007 (7.4%), while people in the finance industry (3%) and education and health services (3%) faced the lowest unemployment rates.

In the industries with low unemployment rates, women and men faced similar unemployment rates. On the other hand, in industries suffering from high unemployment rates, women usually had higher than average unemployment rates. For example, the BLS reports in Employment and Earnings that in manufacturing, the unemployment rate among women was 5.4% in 2007, while the unemployment rate for men was 3.8%. In the wholesale and retail trade, the unemployment rate for women was 5.4%, while the unemployment rate for men was only 4.2%. In transportation and utilities, the unemployment rate for women was 4.5%, while the unemployment rate for men was 3.8%. The exception to this rule was in construction, where women suffered a high unemployment rate of 6.6% in 2007, but men faced an even higher unemployment rate of 7.5%.

HOW LONG DOES UNEMPLOYMENT LAST?

According to historical data compiled by the BLS from the Current Population Survey (http://www.bls.gov/webapps/legacy/cpsatab9.htm), the average length of unemployment in 2007 was 16.8 weeks, down from 19.6 weeks in 2004, but up from 12.6 weeks in 2000. The median duration of unemployment in 2007 was 8.5 weeks. (See Table 3.4.) In 2007 about 2.5 million of the nation's 7.1 million unemployed workers (35.9%) had been unemployed for less than five weeks, and 2.2 million (31.5%) had been out of work for five to fourteen weeks. About 2.3 million unemployed workers (32.5%) had been out of work for fifteen weeks or more. Over one million of these workers had been out of work for twenty-seven weeks or more. However, these statistics varied by gender, age, race and ethnicity, marital status, occupation, and industry.

Gender and Age

Both gender and age have some effect on the length of unemployment. Women typically spent less time unemployed than did men. In 2007 men were unemployed for an average of 17.3 weeks, while women were unemployed for an average of 16.2 weeks. (See Table 3.4.) In addition, generally the older the job seeker, the longer it took to find work. Because better-paying jobs usually take longer to find, men forty-five years and older, who are most likely to be seeking higher-paying employment than either women or younger people, remained unemployed longer. Young men and women aged sixteen to nineteen years old were unemployed an average of 11.6 weeks and 10.6 weeks, respectively, compared with 23.4 weeks for men and 20 weeks for women who were aged fifty-five to sixty-four.

Race and Ethnicity

Race and ethnicity also affects the duration of unemployment. Hispanic workers were unemployed, on average, for the least amount of time in 2007 (14.9 weeks), possibly because Hispanic workers tend to be concentrated in low-paid service occupations, a growing industry. Unlike in other race and ethnic groups, Hispanic women spent a longer average time unemployed than did Hispanic men—15.5 and 14.6, respectively. (See Table 3.4.)

Whites spent the next shortest average time unemployed in 2007 (15.7 weeks). (See Table 3.4.) White women spent an average of 15.1 weeks unemployed, while white men spent an average of 16.3 weeks unemployed. Asians spent an average of 17.5 weeks unemployed; Asian men spent on average a slightly longer time than Asian women looking for work (17.8 weeks and 17.2 weeks, respectively). African-Americans spent the longest time looking for work; their average length of unemployment, 20.7 weeks, was nearly six weeks longer than the average length of unemployment for Hispanics. African-American men spent, on average, 21.6 weeks unemployed, while African-American women averaged 19.8 weeks unemployed.

Marital Status

Although never-married persons have a higher unemployment rate than married persons, married persons spend, on average, a longer time unemployed than do never-married persons. Widowed, divorced, or separated persons spend the longest average time unemployed of all. Among never-married men, the average length of a stint of unemployment was 16.7 weeks in 2007. (See Table 3.4.) Married men, on the other hand, spent an average of 17.6 weeks unemployed, while widowed, divorced, or separated men spent, on average, 19.3 weeks unemployed.

A similar pattern was true among women. Never-married women spent an average of 14.9 weeks unemployed in 2007. (See Table 3.4.) Married women spent, on average, a week and a half longer unemployed (16.6 weeks). Widowed, divorced, or separated women were unemployed longest of all; they spent, on average, 18.2 weeks unemployed, more than three weeks longer than never-married women did.

Occupation and Industry

People working in management, professional, and related occupations and production, transportation, and material moving occupations had a longer average duration of unemployment than did people in other occupations in 2007. Professionals averaged 18.1 weeks out of work, while managers averaged 17.6 weeks out of work. (See Table 3.5.) Those in production occupations averaged 18.1 weeks out of work, while those in transportation and material moving occupations averaged 17.7 weeks out of work. Natural resources, construction, and maintenance occupations had a relatively low average duration of unemployment (15.1 weeks). People working in sales averaged unemployment durations of 16.9 weeks, while those in service occupations averaged 16.3 weeks out of work. People with no previous work experience averaged a duration of 17.3 weeks looking for work.

The length of unemployment also varied by industry. The construction industry averaged the shortest duration of unemployment in 2007, at 14.1 weeks. The leisure and hospitality industry and “other services” industry also averaged fairly short durations of unemployment in that year (15.2 weeks and 15.9 weeks, respectively). The information industry averaged the longest duration of unemployment, at 22.1 weeks, followed by the public administration industry (20.3 weeks) and manufacturing (19.5 weeks). (See Table 3.5.)

REASONS FOR UNEMPLOYMENT

In 2007 nearly 7.1 million workers experienced unemployment in the United States, according to the Bureau of Labor Statistics in Employment and Earnings. Nearly half of those had lost their jobs or had completed temporary jobs (3.5 million, or 49.7%), including 976,000 who were on temporary layoff. (See Table 3.6.) Another 2.1 million people (30.3%) had left the labor force at one time and were now returning and searching for work; the BLS calls these people “reentrants.” Another 793,000 people (11.2%) were unemployed because they had voluntarily left their jobs. Only 627,000 (8.9%) were new entrants to the labor force.

Reasons for unemployment varied greatly by gender. A larger proportion of men who were unemployed had lost their jobs permanently; 31.1% of unemployed men over the

age of twenty compared with 25.6% of unemployed women over the age of twenty were in this position, as indicated by Table 3.6. Women, on the other hand, were more likely to have voluntarily left their positions (12.9% of women who were unemployed and 11.4% of men who were unemployed). In addition, women were much more likely than men to be reentering the job market after some time away; 36.2% of unemployed women were reentrants, compared with only 22.2% of men. This reflects the reality that women workers often leave their jobs for a period of time to care for young children or elderly parents.

Duration by Reason of Unemployment

According to the BLS in Employment and Earnings, in 2007 people on temporary layoff were most likely to be out of work for less than five weeks, while people who had permanently lost their jobs were most likely to be out of work for fifteen weeks or more. In that year, slightly over one-third (37%) of workers aged sixteen and over who had lost their jobs or who had completed temporary jobs were unemployed less than five weeks, while 30.7% were unemployed fifteen weeks or more. More than one-half (55.8%) of those who were on temporary layoff were out of work for five weeks or less. Of those who had permanently lost their jobs in 2005, more than two out of five (41.3%) remained unemployed fifteen weeks or more.

A worker's age also had an impact on the amount of time spent unemployed. About two-thirds (62.9%) of all new entrants into the job market found work within four-teen weeks, 32.8% of them finding employment within five

weeks, according to the BLS. Younger unemployed people and temporary workers tended to find jobs more quickly than older workers. Among sixteen- to nineteen-year-olds, nearly two-thirds (61.9%) of those who had lost their jobs or who had completed temporary jobs had found work within five weeks or less. Men age twenty and over were more likely than women of the same age to spend fifteen weeks or more unemployed (35.2% and 33.8%, respectively), while women were more likely than men to find work within five weeks (35% and 33.2%, respectively).

WITHDRAWN FROM THE LABOR FORCE

In addition to people who are working, the labor force includes all of the unemployed people who are looking for work. People who stop looking for work are considered to have left the labor force, regardless of their age or reason for not looking for work. They are not counted among the unemployed by the Department of Labor. In 2007 more than half of the 78.7 million people who were not in the labor force were aged fifty-five or older (42.2 million, or 53.6%). (See Table 3.7.) Approximately 21.3 million (27.1%) were between the ages of twenty-five and fifty-four and another 15.2 million (19.3%) were aged sixteen to twenty-four. More than six of every ten people not in the labor force (61.9%) were women, reflecting the fact that many women take care of their families rather than work.

Most of the people not in the labor force (74 million, or 94%) did not want a job at the time they were surveyed by the U.S. Department of Labor. (See Table 3.7.) Of the approximately 4.7 million people who were out of the labor force but did still want a job, nearly two million (41.6%) had looked for work during the previous year. Men who were not in the labor force were more likely to want a job (2.1 million of 30 million, or 7.1%) than were women who were not in the labor force (2.6 million of 48.7 million, or 5.3%).

Reasons for Not Working

The reasons people were not looking for work included school or family responsibilities, ill health or disability, and discouragement over job prospects. Women's reasons for being out of the labor force differed markedly from those reported by men. Of the 669,000 women who were available

to work but not currently looking for a job in 2007, 123,000 (18.4%) cited taking care of their home or family as their reason for not working; 78,000 (11.7%) were in school; and 58,000 (8.7%) were either ill or disabled. (See Table 3.7.) In contrast, among the 726,000 men who were available to work but out of the labor force in 2007, only 37,000 (5.1%) were taking care of their family or home; 102,000 (14%) were in school or training; and 57,000 (7.9%) were ill or disabled. Nearly a third (226,000 of 726,000, or 31.1%) of the men available to work but not currently looking for work reported discouragement over job prospects as the reason. Discouragement over job prospects was reported by only 143,000 of 669,000 women (21.4%) not currently looking for work.

CHAPTER 3
UNEMPLOYMENT

The United States unemployment rate reached a post–World War II high of 9.7 percent in 1982. It remained high at 9.6 percent in 1983 as a result of the most severe economic recession since the Great Depression of the 1930s. The unemployment rate then dropped, approaching 5 percent in 1989, but again began increasing, reaching 7 percent in 1991 and rising almost to 8 percent in 1992. As the economy improved, the rate fell to 6.9 percent in 1993. By 1998 the U.S. unemployment rate had dropped to 4.5 percent and in 1999 reached a low of 4.2 percent. By April 2000 unemployment had declined to 3.9 percent, the lowest level in three decades.

With a creeping recession, unemployment once again began to rise in early 2001 and rose significantly following the terror attacks on the United States on September 11, 2001. In June 2003, 9.4 million people were out of work, and the national unemployment rate reached a peak of 6.4 percent. As of February 2004 the national rate had gradually been reduced to 5.6 percent. (See Figure 3.1.) Not counted in the unemployment rate figures are some previously laid-off workers, especially those over 55 years old, who have stopped looking for work.

INTERNATIONAL UNEMPLOYMENT

In the third quarter of 2003 the United States, as compared to eight other countries, had the fourth lowest unemployment rate (6.1 percent). The United Kingdom (5 percent), Japan (5.2 percent), and Australia (5.9 percent) all had lower unemployment rates. Countries with higher unemployment rates at that time include Canada (7.2 percent), Italy (8.7 percent), Germany (9.1 percent), and France (9.3 percent). (See Table 3.1.)

BY STATES

Unemployment rates in the United States vary from state to state. In December 2003, the states with the highest unemployment rate were Alaska (7.7 percent), Oregon and Michigan (each 7.2 percent), Washington (6.8 percent), and Washington, D.C. (6.6 percent). North Dakota (3.2 percent), South Dakota (3.4 percent), Virginia (3.6 percent), and Nebraska (3.7 percent) had the lowest rates. (See Table 3.2.) The rates in Colorado and Washington, D.C., remained unchanged from 2002 to 2003, while Michigan had the highest increase (from 6.2 percent to 7.2 percent). Unemployment rates in six states—Mississippi, Utah, Idaho, Georgia, Arizona, and Pennsylvania—dropped by one full point or more.

AGE

Unemployment does not occur evenly in all occupations or sectors of society. Younger workers under 25

years of age are far more likely to be unemployed than older workers. Their jobs are often more marginal, and younger workers leave their jobs more often than older ones. They also have less seniority to protect themselves against layoffs.

While the annual average unemployment rate was 5.8 percent in 2002, those 16 to 24 years old experienced a rate of 12 percent. Young adults 20 to 24 years old (9.7 percent) had more than double the unemployment rate of workers 25 to 54 years old (4.8 percent). (See Table 3.3.)

RACE, GENDER, AND MARITAL STATUS

In September 2003 blacks (11.2 percent unemployment rate) and Hispanics (7.5 percent) were considerably more likely to be out of work than whites (5.3 percent). Many blacks work in occupations that have suffered as the American economy has changed from an industrial to a service economy. In September 2003 black teenagers experienced an unemployment rate of 32.8 percent as compared to 15.2 percent for white teenagers. Black male teenagers (34.2 percent) were more likely to be unemployed than black female teenagers (31.6 percent). (See Table 3.4.) In 2003, a greater percentage of men 16 years and older (6.3 percent) were unemployed than women (5.7 percent). (See Table 3.5.)

A married person was much less likely to be unemployed than a single, widowed, or divorced individual. This observation held true across all races. In 2003, single, never married males (11 percent) had nearly triple the unemployment rate of married males (3.8 percent). Widowed, divorced, or separated males (7.3 percent) had nearly two times the rate of married men. While only 3.5 percent of white married men were unemployed, 9.7 percent of single white men and 6.9 percent of widowed, divorced, or separated white males were out of work.

Among blacks, 5.9 percent of married men 16 years and older were unemployed, compared to 9.8 percent of widowed, divorced, or separated men and 19 percent of singles. (See Table 3.5.)

The same situation held true for married, single, divorced, widowed, and separated women. While only 3.7 percent of married women and 6.1 percent of widowed, divorced, or separated women were unemployed, 9.1 percent of single females over 16 years of age were unemployed. Single white women over the age of 16 (7.4 percent) were more than twice as likely to be out of work as married white women (3.5 percent). Single black women (15.2 percent) were almost three times as likely to be unemployed as married black women (5.5 percent). (See Table 3.5.)

EDUCATION

The more education an individual has, the less likely it is that he or she will be unemployed. In 2002, while 8.4 percent of those with less than a high school diploma were unemployed, only 2.9 percent of college graduates were. High school graduates with no college had an unemployment rate of 5.3 percent, while those with some college, but no degree, faced a 4.5 percent unemployment rate. (See Table 3.4.)

OCCUPATIONS AND INDUSTRIES

Some occupations are more susceptible to unemployment than others. In 2003 the unemployment rates for people employed in managerial and professional specialties (3.1 percent) were much less than the rate for those in production, transportation, and material moving occupations (7.9 percent). Within each occupational grouping, differences exist. While sales and administrative service occupations had 5.5 percent of its workforce unemployed, those in sales occupations were more likely to be unemployed (5.9 percent) than those in office and administrative support occupations (5.2 percent). (See Table 3.6.)

Gender also plays a role. In 2003 women in sales occupations had an unemployment rate of 7.0 percent, compared to 4.8 percent for men. While women and men had similar unemployment rates in managerial and professional specialty fields, more female workers in production, transportation, and material moving occupations were out of work than were males in that occupational category. (See Table 3.6.)

In 2003 those working in management, administrative, and waste services occupations were most likely to find themselves without jobs. Those working in hospital health care occupations were among the least likely to be unemployed. (See Table 3.7.)

HOW LONG DOES UNEMPLOYMENT LAST?

In 2003 the average length of unemployment was 19.2 weeks, up from 13.2 weeks in 2001. The median duration of unemployment was 10.1 weeks. Almost one-third (31 percent) of the unemployed had been unemployed

for less than five weeks, and a little less than 30 percent had been out of work for five to 14 weeks. About 16 percent were out of work 15 to 26 weeks and 22 percent for 27 weeks and over. (See Table 3.8.)

Gender and Age

Men tended to stay unemployed somewhat longer (an average of 19.8 weeks) than women (18.4 weeks) in 2003. Generally, the older the job seeker, the longer it took to find work. Young adults 16 to 19 years old were unemployed an average of 11.7 weeks, compared to 26 weeks for those 55 to 64 years old. (See Table 3.8.)

Because better-paying jobs usually take longer to find, men 45 years and older, who were more likely to be seeking higher-paying employment than either women or younger people, remained unemployed longer.

Race and Ethnicity

Workers of Hispanic origin were unemployed for an average of 15.9 weeks in 2003, as compared to whites (18 weeks). African American workers remained unemployed 22.7 weeks on average. (See Table 3.8.)

Marital Status

Widowed, divorced, or separated women were unemployed somewhat longer (21.2 weeks) in 2003 than those who had never been married (16.2 weeks) or those who were living with their spouses (19.5 weeks). Married men living with their wives (21.4 weeks) and those who were widowed, divorced, or separated (21.5 weeks) were out of work longer than never-married men (18.1 weeks). (See Table 3.8.)

Occupations

In 2003 more than 35 percent of those unemployed in service occupations were out of work less than five weeks, and more than a third were still looking for work after 15 weeks. Twenty-seven percent of those seeking managerial and professional positions were unemployed less than five weeks, and another 44 percent still lacked jobs after 15 weeks. (See Table 3.9.)

Workers in managerial and professional occupations had among the longest average duration of unemployment (22.6 weeks). Many of these had experienced the down-sizing of staff in major companies. They were often older workers looking for higher-paying jobs. Production workers

had an average duration of 22.4 weeks of unemployment; sales and office occupations workers were out of work for an average of 19.2 weeks; and employees in service occupations endured unemployment for an average of 16.5 weeks. (See Table 3.9.)

Industry

During 2003, 35 percent of construction workers, 29 percent of transportation and utilities laborers, and 27 percent of financial activities workers found employment within five weeks of being jobless. Almost one-third (31.9 percent) of construction workers still needed jobs after 15 weeks. Construction workers were out of work an average of 15.2 weeks. Durable goods manufacturing workers had the longest average duration of unemployment (25.4 weeks). The manufacturing labor force as a whole took an average of 24.5 weeks to find a job. Nearly one-quarter (24.6 percent) were unemployed for less than five weeks, and another 49.1 percent were unemployed more than 15 weeks. (See Table 3.9.)

REASONS FOR UNEMPLOYMENT

In 2003 most of those classified as unemployed had lost their jobs or had completed temporary jobs (55.1 percent). Slightly less than one-third (28.2 percent) had left the labor force and were returning. Only 7.3 percent were new entrants to the labor force. About 39 percent of the unemployed men and 33.2 percent of the unemployed women had lost their jobs permanently. (See Table 3.10.)

Duration by Reason of Unemployment

Less than one-third (30.7 percent) of workers who had lost their jobs or who had completed temporary jobs were unemployed less than five weeks. More than 40 percent were unemployed 15 weeks or more. One-half (50.8 percent) of those who were on temporary layoff were out of work for five weeks or less. Less than one-fourth (22.3) percent) of those who had lost their jobs found work in five weeks or less. (See Table 3.11.)

Younger unemployed people and temporary workers tended to find jobs more quickly than older workers. More than half (59.2 percent) of the 16- to 19-year-olds who had lost their jobs or who had completed temporary jobs had found work in five weeks or less. (See Table 3.11.)

JOB SEARCH

Unemployed workers use different methods to find new jobs. In 2003 most tried an average of 1.96 different techniques. Almost two-thirds (63.8 percent) approached an employer directly. More than one-half (54.6 percent) sent out resumes or filled out applications. Approximately

18.8 percent sought the help of friends and relatives. Just over 20.6 percent went to public employment agencies, and 8.2 percent visited private employment agencies. (See Table 3.12.)

New entrants to the job market were somewhat less likely to seek out employers directly (61.5 percent) than those who had lost their jobs or who had completed temporary jobs (66.2 percent). They were also less likely to use employment agencies than those who had been working and lost their jobs. (See Table 3.12.)

WITHDRAWN FROM THE LABOR FORCE

The labor force includes those working and those unemployed who are still looking for work. In 2003 more than half (53.4 percent) of those people who were not in the labor force were age 55 or older. More than six of 10 (62.2 percent) were women. (See Table 3.13.)

Reasons for Not Working

In January 2004, approximately 21 million people between the ages of 25 and 54 had been out of the labor force for all of 2003. (See Table 3.14.) Women accounted for nearly two-thirds of those individuals who were not actively participating in the labor force. The reasons they were not in the labor market differed from those reported by men. Of the women who were available to work but not currently looking for a job, 11 percent cited taking care of their home or family as their reason for not working; 10 percent were either ill or disabled, and 19 percent were in school. In contrast, among the men who were available to work but currently out of the labor force, 7

percent were taking care of their family or home, and 21 percent were in school or training. Discouragement over job prospects was the reason reported by 31 percent of men and 20 percent of women who were out of the labor force. (See Table 3.14.)

Still Wanted a Job

In 2003 only about 6.4 percent of those who were no longer part of the labor force still wanted a job, and 43.8 percent of those who wanted a job had looked for work during the previous year. (See Table 3.14.)