Welcome to the Small Business Rundown. Each day, we bring you stories that impact small business owners and their workforce.
Small Business News Highlights for June 5:
- May jobs report show surprising rebound
- Economic data shows minorities still lag behind in recovery
- California group raising $1 billion for small businesses impacted by tumult of 2020
Unemployment rate fell to 13.3%
“There is no underselling it, this was a huge surprise.”
The Bureau of Labor Statistics announced today that the unemployment rate fell to 13.3% and that 2.5 million jobs were added to the economy last month, shocking economists and pundits, alike.
While the drop in unemployment represents the biggest since the Bureau of Labor Statistics started tracking the information in 1939, economists do note that the misclassifications of workers last month do skew the numbers and that 1 in 6 Americans still can’t find work.
Economic data shows minorities still lag behind in recovery
“One thing we’ve talked about this week with police protests is that we’ve left African Americans behind in a lot of things. The jobs-day numbers reflect that. Whenever we have a recovery, blacks are always left behind.”
Despite the overall decrease in the unemployment rate, economists report a troubling rise in the unemployment rates for some minorities.
In fact, “Of particular concern to economists as the country has seen an outburst of anti-racism protests is that black Americans saw their unemployment rate, already higher than that of white people, increase. Whereas the unemployment rate for whites went down from 14.2 percent to 12.4 percent, the unemployment rate for blacks ticked up, from 16.7 to 16.8 percent.”
While Asian Americans saw their unemployment rate rate rise half a point, the rate of unemployed Hispanic workers fell from 18.9% to 17.6%.
California group raising $1 billion in capital to help SMBs
“We can’t address the economic issues of COVID-19 and the George Floyd murder without being able to provide jobs in these [low-income] communities. And the only people that hire people in these communities are microbusinesses.”
And now for some truly good news. A newly-formed group in California has set out to raise $1 billion in capital to help small businesses survive the fallout of the COVID-19 pandemic, curfews, looting and vandalism.
The group, called the California Small Enterprise Task Force, is a “consortium of legal, financial, and nonprofit professionals working together to connect California small businesses with the resources they need during the COVID-19 pandemic.”
They initially formed as a resource for small business owners but expanded their mission to include raising cash for small businesses once the limits of the federal government’s efforts became apparent.