US black unemployment declines

The US black unemployment rate fell to 16.8 percent in May, and systematic racism and high unemployment among blacks and Hispanics slow down the US economy. This was stated by the head of the Federal Reserve Bank (FRB) Dallas Robert Kaplan in an interview with CBS.

He also noted that the US unemployment rate will remain high by the end of 2020, despite a gradual increase in employment. “We are now on our way down,” he said. According to Kaplan, the country will
a positive increase in the number of jobs in June and July, but even with this growth, the year will end with high unemployment.

According to his forecasts, by the end of the year it will be 8 percent. The unemployment rate jumped from the lowest level for 50 years at 3.5 percent in February to 14.7 percent in April. In early June, it was reported that this figure was at the level of 13.3 percent, while analysts expected higher rates. The recession in the US economy was caused by restrictive measures introduced to curb the spread of the new coronavirus.

Earlier, the authors of a study conducted by Bloomberg Economics, concluded that the current high level of unemployment in the United States may persist for a long time and in some sense become “eternal”. As a reason, they called the “redistribution shock” – a phenomenon in which new sectors appear in some sectors, while their number decreases in others. The problem lies in the fact that new places are created more slowly than old ones are being reduced.

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