CHAPTER 3
LABOR FORCE PARTICIPATION

A HISTORICAL PERSPECTIVE OF MINORITIES IN THE LABOR FORCE

Minorities and ethnic groups have always been an important part of the American labor force. In many instances, groups were allowed, or even encouraged, to immigrate to the United States to fill specific labor needs. Perhaps the most obvious example is the involuntary immigration of Africans, who provided slave labor for southern plantations as early as the seventeenth century. Later, Asians and Hispanics were sought to mine resources, farm land, and build railroads.

African-Americans

Since 1619, with the arrival of the first slave ships to North American shores, African-Americans have been part of the labor force. While virtually all worked as unpaid slaves on southern plantations, a few were allowed to work for pay in order to purchase their freedom and that of their families, an effort that often took many years. In addition to farm and household labor, some developed talents in masonry, music, or other skills and were hired out by their owners.

In 1890, less than thirty years after President Abraham Lincoln issued the Emancipation Proclamation (which freed the slaves in the Confederate states) and the Thirteenth Amendment (which outlawed slavery in the United States), approximately three million African-Americans worked in the paid labor force. Between 1890 and 1930 this figure almost doubled to 5.5 million, a result not only of the growth in population, but also of the increase in the number of unskilled jobs that became available during and immediately following World War I (1914–18). Job prospects were best in the North, and hundreds of thousands of African-Americans left their rural southern homes, migrating north in search of unskilled work in factories and homes. During the 1940s, arms production for World War II (1939–45) again attracted hundreds of thousands of African-Americans to the North, bringing about a moderate increase in the number of African-American workers. These migrations of African-Americans from the South to the North following both World Wars were the largest movements of people within the United States and did much to influence recent American history.

Throughout the twentieth century, African-Americans slowly but steadily became a bigger part of the labor force. In 1900 nonwhite workers of all races made up 12 percent of the labor force. By 1999 African-Americans alone made up 12 percent of the workforce, according to the U.S. Department of Labor.

Asian-Americans

Chinese immigrants came to the United States, not only because of the gold rush in California, but also to work on railroads, on farms, and in construction and manufacturing, mostly in the West. During the first decade of the twentieth century, almost 130,000 Japanese came to the rapidly expanding sugarcane plantations of Hawaii and the fruit and vegetable farms of California. President Theodore Roosevelt and the Japanese government, however, in the "Gentleman's Agreement" of 1907, agreed to stop the flow of Japanese workers to the United States by withholding passports, thus cutting the flow to a trickle. The most recent wave of Asians came to the United States in the 1970s and 1980s, when more than a million Indo-Chinese refugees were admitted from Vietnam, Cambodia, Thailand, and Laos following the Vietnam War.

Hispanic Americans

Many Hispanic Americans can trace their roots to the time when the southwestern states were still a part of Mexico. The ancestors of most Hispanic Americans, however, arrived after Mexico surrendered much of its territory following its defeat in the Mexican-American War of 1846–48. The U.S. policy toward Hispanic American workers (mainly from Mexico) has alternately encouraged and discouraged immigration, reflecting the nation's changing needs for labor. Prior to the start of the twentieth century, although there was little demand in the Southwest for Mexican labor, Mexicans moved back and forth across completely open borders to work in the mines, on ranches, and on the railroad.

As the Southwest began to develop, however, and Asian immigration slowed, the demand for Mexican labor increased. According to the U.S. Immigration and Naturalization Service (INS), fewer than 1,000 Mexicans legally immigrated to the United States between 1891 and 1900. The need for Mexican labor, however, was so great that during World War I the INS exempted many Mexicans from meeting most immigration conditions, such as head taxes (paying a small amount to enter the country) and literacy requirements. Between 1921 and 1930, approximately 460,000 Mexicans came, primarily in search of work. While legal immigration rose, a large amount of illegal immigration also occurred. Historians have estimated that during the 1920s there were at least as many illegal as legal Mexican immigrants in the country.

During the Great Depression of the 1930s, when jobs became scarce, many Americans believed the nation's unemployment situation was significantly compounded by illegal aliens. As a result, thousands of Mexicans, both legal immigrants and illegal aliens, were repatriated (sent home). During this time, the Mexican population in the United States fell by almost one-half.

When World War II began in Europe in 1939, the United States needed workers to help in its role as supplier to the Allied countries, primarily Great Britain. When the lure of better-paying factory jobs brought many rural workers to the city, the nation looked to Mexico to fill the need for agricultural workers. The Bracero Program (1942–64) permitted entry of Mexican farm workers on a temporary contract basis with U.S. employers. While the program was considered an alternative to illegal immigration, it likely contributed to it since there were more workers who wanted to participate in the program than there were openings.

Immigration researchers have estimated that more than one million undocumented Hispanics entered the United States in the early 1980s. A major downturn in the Mexican economy led to a surge in Mexican immigrants, and several hundred thousand other Hispanics arrived from Central America, most notably from El Salvador and Guatemala, in order to escape bloody civil wars and repressive regimes. Overall, Hispanics accounted for approximately one of every three legal immigrants to the United States during this period. In 1986 the Immigration Control and Reform Act (PL 99-603) gave more than two million Mexicans legal status in the United States. Since that time, Hispanics from Cuba, Central and South America, and Mexico have continued to enter the United States, legally and illegally.

"Get Tough" Policy

To stem the flow of undocumented workers, a "get tough" policy was initiated in 1994, but in the opinion of critics the money spent on installing infrared sensors, cameras, and stadium-level lighting along the Mexican border was essentially wasted. Instead of crossing at more populated and better-secured areas, illegal immigrants crossed into the United States through mountains and deserts, facing dangerous conditions, and many have died.

While arrests of illegal aliens along the southwest border increased, enforcement in the workplace was rare. The U.S. economy, in fact, became so dependent on a pool of low-wage workers that mass deportation of undocumented workers was not a realistic option. In January 2004 President Bush proposed a guest-worker program that would grant a three-year work permit to millions of undocumented workers, renewable for at least three more years, with a chance to apply for a green card in order to gain permanent residency. In addition, workers in other countries could apply for work permits to take jobs that no American citizen wanted. The administration's proposal faced opposition from both the left and right of the political spectrum. Republican officeholders in states with small Hispanic populations were not supportive, and Democrats were quick to point out that the proposal offered no increased chance for permanent residency status, let alone citizenship. Undocumented workers were also split on the proposal. While they welcomed the chance to visit their home countries without fear of being unable to return to the United States, they were also wary of providing information about themselves to the government, fearful that they could more easily be deported once their permits expired.

LABOR FORCE PARTICIPATION

Participation in the labor force means that a person is either employed or actively seeking employment. Those who are not looking for work because they are "going to school" or "unable to work" are not considered part of the labor force. The labor force increases with long-term growth of the population. It responds to economic forces and social trends, and its size changes with the seasons.

African-Americans

Historically, African-American workers have participated in the labor force in larger proportion than whites, primarily because African-American women were more likely to be working than their white counterparts. The increased entry of white women into the labor force since the 1960s, however,

has narrowed the gap between the two races. In 1960 white women had 36.5 percent participation, compared to 48.2 percent participation among African-American and other minority women. According to the Department of Labor, by December 2003, 59.8 percent of all white women over age twenty were in the civilian labor force, which was still somewhat less than the 63.1 percent participation of African-American women over age twenty. (See Table 3.1.)

Conversely, the labor force participation rate of African-American men twenty years and older has declined since the 1950s. In 1948, 87 percent of all African-American males twenty years and older were employed or actively looking for work. By 1970 that share had fallen to 76.5 percent, and by December 2003 it had dropped to 71.2 percent. In comparison, 76.2 percent of all white males twenty years and older were in the civilian labor force in December 2003. The overall participation rate for all African-Americans (male and female) was 63.2 percent in December 2003, compared with 66.3 percent among all whites. (See Table 3.1.)

Hispanic Americans

The U.S. Bureau of Labor Statistics began maintaining annual employment data on Hispanics in 1973. In December 2003 overall, 67.7 percent of Hispanics participated in the labor force. (See Table 3.2.) As of 2002, Mexican Americans had the highest overall participation (70.3 percent), followed by Puerto Ricans (62.2 percent) and Cuban Americans (55.6 percent). (See Table 3.3.)

As of 2002, in a survey of civilians twenty-five years and older, a higher proportion of Hispanic Americans participated in the labor force than African-Americans and whites. Approximately 71 percent of Hispanics participated in the labor force, compared with 67.6 percent of African-Americans and 67 percent of whites. (See Table 3.4.)

Asian-Americans and Pacific Islanders

In March 2002, 66.9 percent of Asians and Pacific Islanders (APIs) age sixteen and over were in the civilian labor force. (See Table 3.5.) The percentage of API women in the civilian labor force was 59.3 percent in

March 2002, compared with 59.9 percent of white non-Hispanic women in the civilian labor force. Approximately 75.1 percent of API men were in the labor force in March 2002, compared with 73.4 percent of non-Hispanic white men.

Older APIs tend to work longer because of the strong work ethic in Asian cultures and frequently because of economic need. Often they are employed in family businesses that do not offer early retirement packages. Depending on the time of their immigration and their work history, APIs age sixty-five and older may not be entitled to adequate Social Security benefits. Also, some may have immigrated under circumstances that prevented them from retaining any wealth they might have accumulated in their native lands.

Native Americans/Alaska Natives

Gathering accurate statistical data on the labor force participation rates of Native Americans/Alaska Natives is very difficult. They are often counted as "other" in Bureau of Labor Statistics and Census Bureau data, making specific information hard to obtain. About 22 percent of Native Americans live on reservations and trust lands. In 1990 labor force participation varied among the different reservations from a high of 86.2 percent for the Zuni Pueblo of Arizona and New Mexico, to a low of 64.7 percent at Fort Apache, Arizona.

UNEMPLOYMENT

To be classified as unemployed, a person must:

• Not have worked in the week specified for the survey
• Have actively sought work sometime during the four weeks preceding the survey
• Be currently available to take a suitable job.

In December 2003 approximately six million whites, or 5 percent of whites in the civilian labor force, were unemployed in the United States. Approximately 1.7 million African-Americans, or 10.3 percent of African-Americans in the civilian labor force, were unemployed. (See Table 3.1.) Among Hispanics, 1.3 million, or 6.6 percent of Hispanics in the civilian labor force, were unemployed in December 2003. (See Table 3.2.)

African-Americans

Although unemployment rates rise and fall with the strength of the economy, the unemployment rates for African-Americans have run twice as high as for whites for several decades. With fewer marketable skills than whites, African-Americans are more likely to remain

unemployed for longer periods, especially during a recession. As a result, they are more likely to be labeled long-term unemployed (those without work for at least twenty-seven weeks).

In December 2003 the unemployment rate for African-American men twenty years and older (9.3 percent) was nearly double that of white men (4.7 percent) in the same age group. African-American females age twenty and older (9.7 percent) had more than twice the unemployment rate of white females (4.3 percent) twenty years and older. (See Table 3.1.)

Large numbers of African-Americans are classified as discouraged workers—persons not in the labor force who want jobs but have stopped looking because they do not think they can find them. Discouraged workers are not included among the unemployment figures.

Unemployment among young African-Americans ages sixteen to nineteen was 27.3 percent. In comparison, the unemployment rate for white teens in the same age group was 14.8 percent in December 2003. (See Table 3.1.)

Hispanic Americans

The unemployment rate for Hispanics in December 2003 was 6.6 percent, compared to 5 percent for whites and 10.3 percent for African-Americans. (See Table 3.2.) That was an improvement over the 8 percent unemployment rate for Hispanics in December 2002.

The unemployment rate varies among Hispanic subsets. Of these groups, the Puerto Rican-origin population had the highest rate of unemployment in 2002 at 9.4 percent. Cuban Americans had the lowest rate of unemployment (6.7 percent), compared to 7.5 percent for Mexican Americans. (See Table 3.3.)

Asian-Americans and Pacific Islanders

Unemployment figures for Asian-American/Pacific Islanders are similar to those for non-Hispanic whites. In March 2002 the unemployment rate for APIs was 5.7 percent, somewhat below the 6.2 percent figure for the U.S. population. Non-Hispanic whites had an unemployment rate of 5.1 percent in March 2002. (See Table 3.6.) The low rate of unemployment among APIs can be attributed,

in part, to their high educational attainment and their commitment to small family businesses.

Native Americans

It is as difficult to determine the unemployment rate for Native Americans as it is to determine the employment rate. Based on data from the Bureau of Indian Affairs (BIA), the proportion of those unemployed and seeking work ranged from 12 percent in Texas to 74 percent in South Dakota. It should be noted that the population served by the BIA in South Dakota was 58,000, compared to only 1,320 in Texas. Those served by the BIA usually live either on or adjacent to reservations, especially in South Dakota, and, in most cases, reservations do not generate jobs necessary to support Native American families. This is a major reason that the leadership on Native American reservations has been so willing to introduce or expand casino gambling on their reservations.

PROJECTIONS FOR 2010

The Bureau of Labor Statistics projected that more Hispanics than African-Americans would enter the workforce between 2000 and 2010, causing the group to make up more of the workforce than African-Americans by 2010. The number of African-Americans in the labor force was expected to increase 20.7 percent, and the group would total more than twenty million workers, or 12.7 percent of the workforce. The participation rate among Hispanics was expected to grow 36.3 percent from 2000. They would number 20.9 million workers and were expected to make up 13.3 percent of the labor force in 2010, up from 10.9 percent in 2000. (See Table 3.7.) The growth of Hispanics in the workforce can be attributed to higher birth rates and increased immigration.

The proportion of "Asian and other" (which includes Asians, Pacific Islanders, American Indians, and Alaska Natives) in the labor force was expected to increase 44.1 percent between 2000 and 2010. Even growth of that proportion would still make this group only 6.1 percent of the labor force, up from 4.7 percent in 2000. (See Table 3.7.) As with most other minority groups, increases reflect continued high immigration and higher fertility rates.

The non-Hispanic white labor force was expected to grow more slowly than the overall labor force, causing the white proportion to decrease slightly from 73.1 percent in 2000 to 69.2 percent in 2010. (See Table 3.7.) The decrease is due to a relatively low immigration rate, projected lower birth rates, and declining participation by men, a reflection of the aging of the white male labor force.