HispanicBusiness

The Hispanic unemployment in October dropped to 4.7 percent from September's 5.4 percent, according to data released today by the U.S. Department of Labor. The overall U.S. unemployment rate dropped as well, to 4.4 percent from 4.6 percent in September, narrowing the gap between the two rates to 0.3 percentage points.

U.S. Hispanics gained 292,000 jobs in October. This absorbed an increase into the labor force of 155,000 and decreased the number of unemployed by 137,000. The increase into the labor force came from two sources: the U.S. Hispanic civilian population increased by 92,000 and 63,000 Hispanics who were previously considered "not in the labor force" decided to look for work.

On an annual basis, employment of Hispanics increased by 977,000 jobs, bringing the Hispanic unemployment rate down from 5.9 percent in October 2005 to the current 4.7 percent. Overall, the U.S. economy added 2,662,000 jobs since October 2005. Hispanics filled 36.7 percent of those new positions, despite being only 13.7 percent of the total U.S. labor force.

Looking at October's seasonally unadjusted data for Hispanic sub-groups, the unemployment rate for Hispanic men 20 and older dropped to 3.4 percent from 3.7 percent in September. Hispanic men gained 172,000 jobs, decreasing the number of unemployed by 28,000 and absorbing an increase in the labor force of 144,000.

Hispanic men have one of the highest labor force participation rates of any group, 84.9 percent in October. By comparison, only 76.2 percent of all men age 20 and over were in the labor force.

The unemployment rate for Hispanic women also dropped in October to 4.9 percent from 6.1 percent in September. Hispanic women gained 214,000 jobs during the month. This absorbed an increase into the labor force of 127,000, as well as decreasing the rolls of the unemployed by 87,000 Hispanic women.

In October, the unemployment rate for Hispanic teenagers (age 16 to 19) dropped dramatically -- to 13.2 percent from 17.1 percent in September. Hispanic teens gained 55,000 new jobs, which absorbed an increase into the labor force of 17,000, as well as drawing down the number of unemployed by 37,000 (discrepancy due to rounding).

Teenagers typically have the highest unemployment rates due to fewer job skills and less experience. Therefore, they may have difficulty being hired. They also tend to be less attached to the labor market, often entering and exiting as their school enrollment status and geographic location change. For example, the labor force participation rate of Hispanic teens was only 36.3 percent in October.