Unemployment Watch: Mixed Unemployment Signals Amid Job Loss in March

4/4/2003

From: Imogen Gunn of the Institute for Women's Policy Research, 202-785-5100, E-mail: gunn@iwpr.org

WASHINGTON, April 4 -- The following "Unemployment Watch" report was released today by the Institute for Women's Policy Research:

Unemployment Watch: Mixed Unemployment Signals Amid Job Loss in March

By Vicky Lovell, Ph.D., and Meghan Salas

The unemployment rate among women heads of families remained much higher than rates among most other workers in March. The rate did decrease from 9.0 percent in February to 8.4 percent in March. In the first month of the reported onset of the recession, March 2001(FN1), their unemployment rate was 6.2 percent. A substantial number of women workers-3.8 million-are now jobless. Of these, 782,000 are heads of families.

The unemployment rate for all adult women remained the same in March as in the previous month, at 5.0 (see Table 1, below). Workers of color continue to experience very high unemployment: 8.4 percent of Black women workers are jobless (down from 9.0 in February), and Hispanic women's unemployment rate (not seasonally adjusted) increased to 8.7 percent from 8.2 percent in February.

The overall unemployment rate remained stagnant from February to March at 5.8 percent. As shown in Table 2, below, unemployment is substantially higher for all workers than it was two years ago in March 2001. At that time, the unemployment rate was 4.3 percent-just higher than the 30-year low of 3.9 percent experienced in 2000. Over two million more adults are out of work now than were unemployed in March 2001.

The unemployment rate for adult women (5.0 percent) is slightly lower than adult men's (5.3 percent), which also remained the same as last month's rate. However, the number of unemployed women rose to 3,250 million.

Women are particularly at risk when unemployment is high because they are less likely than men to receive unemployment insurance while searching for a new job. When they do qualify for unemployment insurance, their benefits are usually lower than men's because their wages are typically lower.

The Department of Labor reported on April 3rd that the seasonally adjusted number of new applications for unemployment insurance increased by 38,000, to 445,000 for the week ending March 29 (FN2). That may foretell higher unemployment rates next month.

Historically, women's employment has been less sensitive to the business cycle than men's-men tend to work in industries that react more strongly to economic slowdowns, like manufacturing and construction, while women's employment is concentrated in white collar work and in services, which are generally more resistant to economic contractions and expansions. As the economic downturn and the war continue, some of these patterns are changing. Table 3 contrasts unemployment rates in several industries that have high female employment. Some are experiencing very high unemployment: professional and business services (9.1), leisure and hospitality (8.9), and retail and wholesale trade (5.9) (43,000 retail jobs were lost in March, including 38,000 in eating and drinking places). Education and health services, which are important employers of women, continue to show very low unemployment at 2.9 percent. Although still low, government showed signs of growing unemployment related to budget woes, increasing from 2.4 percent in February to 2.6 percent in March.

"Women-heads of households are among the groups taking the hardest hit in this recession. We need to adjust our public policies to account for this disproportionate blow," said Heidi Hartmann, Director and President of the Institute for Women's Policy Research.

Table 1. Unemployment in February and March 2003

............................February........March ..............................2003..........2003 A: Unemployment Rate B: Number Unemployed (thousands) ........................-A-......-B-......-A-.....-B- ALL WORKERS..............5.8...8,450......5.8....8,445

ADULT WOMEN..............5.0...3,237......5.0....3,250 Adult white women.......4.2...2,194......4.4....2,269 Adult Black or African American women....9.0.....748......8.7......723 Adult Hispanic or Latina women (a)..........8.2.....577......8.7......619

Women who maintain families..................9.0.....837......8.4......782

ADULT MEN................5.3...3,962......5.3....3,944 Adult white men.........4.6...2,893......4.7....2,925 Adult Black or African American men......10.1.....736......9.3......669 Adult Hispanic or Latino men (a)..........7.3.....775......7.1......757

Notes: 1."Adults" are aged 20 years and older; "all workers" includes 16- to 19-year-olds. 2. Data are from the Bureau of Labor Statistics, U.S. Department of Labor, Current Population Survey of the civilian noninstitutional population, as published in the BLS series The Employment Situation. 3. Except as noted, all unemployment rate data are seasonally adjusted. (a) Not seasonally adjusted.

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Table 2. Unemployment in March 2001 and March 2003

.........................March...........March ..........................2001............2003 A: Unemployment Rate B: Number Unemployed (thousands) ........................-A-......-B-......-A-.....-B-

ALL WORKERS.............4.3....6,088.......5.8...8,445

ADULT WOMEN.............3.6....2,233.......5.0...3,250 Adult white women......3.1....1,593.......4.4...2,269 Adult Black or African American women...6.3......533.......8.7.....723 Adult Hispanic or Latina women (a).........n/a................8.7.....619

Women who maintain families.................6.2......532.......8.4.....782

ADULT MEN...............3.8....2,728.......5.3...3,944 Adult white men........3.3....1,991.......4.7...2,925 Adult Black or African American men......8.5......628.......9.3.....669 Adult Hispanic or Latino men (a).........n/a................7.1.....757

Notes: 1."Adults" are aged 20 years and older; "all workers" includes 16- to 19-year-olds. 2. Data are from the Bureau of Labor Statistics, U.S. Department of Labor, Current Population Survey of the civilian noninstitutional population, as published in the BLS series The Employment Situation. 3. Except as noted, all unemployment rate data are seasonally adjusted. (a) Not seasonally adjusted.

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Table 3. Unemployment Rates in Selected Industries

...............................February...........March .................................2003.............2003 A: Unemployment Rate B: Number Unemployed (thousands) . .............................-A-......-B-......-A-.....-B-

Retail/Wholesale Trade.........6.1...1,238......5.9...1,179 Information....................8.6.....321......7.4.....267 Professional and Business Services........................8.9...1,140......9.1...1,190 Education and health services..3.2.....576......2.9.....518 Leisure and Hospitality.......10.0...1,145......8.9...1,035 Other Services.................5.7.....331......6.1.....370 Government.....................2.4.....483......2.6.....526

Notes: 1. Not seasonally adjusted. 2. Data are from the Bureau of Labor Statistics, U.S. Department of Labor, Current Population Survey of the civilian noninstitutional population, The Employment Situation: March 2003.

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Footnotes:

(FN1). The National Bureau of Economic Research (NBER), the official arbiter of the business cycle in the United States, pronounced that a recession began in March of 2001. Although there was moderate positive growth in 2002, the NBER has yet to determine whether or not the recession is officially over. (FN2). Department of Labor: Employment and Training Administration. April 3, 2003. Unemployment Insurance Weekly Claims Report. Washington, DC.