While the U.S. unemployment rate took a slight dip to 7.3% while adding 169,000 new jobs to the economy, Latino unemployment inched down a tenth of a percent to 9.3% for August. This year the lowest Latino unemployment rate was recorded in April at 9.0%.
It’s being reported that the reason for the drop in the country’s unemployment rate is because the labor force participation rate is down. According to the Wall Street Journal:
“The drop in the main unemployment rate was driven almost totally by negative factors. The number of people employed fell by about 115,000. The only reason the rate declined is that the overall labor force dropped by a larger 312,000, a possible sign of discouraged long-term jobless dropping out.
The labor force participation rate, which is the percent of the population either working or looking to work, took a tumble to 63.2% — its lowest level since 1978.”
In August, the Latino civilian labor force participation rate was 66.3%, which is slightly higher than the national average. This could be because the Latino population is relatively younger.