This Week in ESG and Impact Investing

The September 2026 employment report confirms what we have been w arning about for months : the U.S. labor market is considerably weaker than headline economic narratives have suggested. The Bureau of Labor Statistics reported that total nonfarm payroll employment increased by only 29,000 jobs in September , while the unemployment rate edged up to 4.2 percent . Employment in every major industry was essentially unchanged. That is an extremely weak payroll number. Even more important, BLS revised previously reported employment sharply downward. July payroll growth was revised from +21,000 to -10,000 , while August was revised from +162,000 to +133,000 . Together, July and August employment was 60,000 jobs lower than previously reported . This is particularly noteworthy because after the August report we warned that the initially reported 162,000 payroll increase might be revised downward . That has now occurred. Black Unemployment Jumps to 7.0 Percent The most troubling number in the Se...

The August 2026 Employment Situation report looks stronger than recent months, but we believe the headline payroll number should be treated cautiously. The Bureau of Labor Statistics reported that nonfarm payroll employment increased by 162,000 jobs in August , while the unemployment rate remained at 4.1 percent . That is a significant improvement over the recent trend, but we are not convinced the number fully reflects underlying labor-market conditions. One reason is concentration. About 101,000 of the 162,000 reported jobs—roughly 62 percent—came from just two categories: food services and drinking places and local government education . BLS also noted that the education increase largely offset a decline in the prior month, suggesting that timing and seasonal adjustment may be influencing the headline figure. Much of the rest of the economy showed limited hiring. Employment changed little in wholesale trade, retail trade, transportation and warehousing, financial activities, profess...

Geography and Industry Expose Unequal Impacts on Black and Minority-Owned Firms The latest BLS Employment Situation report makes clear that labor market stress is not evenly distributed. For Black and minority-owned firms, where job losses are occurring matters as much as how many jobs are lost . Geography and industry concentration combine to amplify risk for minority businesses in ways that are largely invisible in national averages. Geographic Concentration Magnifies Risk Black and minority-owned firms are disproportionately concentrated in urban cores, Southern states, and large metropolitan areas that are more sensitive to public spending cycles, service-sector demand, and government employment trends. Key geographic pressure points include: Southern states with large Black populations, where employment growth has slowed in education, healthcare, and public administration Major metro areas reliant on government, nonprofit, healthcare, and hospitality employment Legacy industri...

“Politicizing federal statistics and questioning the integrity of those who produce them harms decision making in every sector.”  Cecilia Rouse, President,  Brookings Institution at "The Importance of Credible Government Economic Data to Business." September 18, 2025, https://www.brookings.edu/events/the-importance-of-credible-government-economic-data-to-business/ . Credible economic data is an incredibly relevant topic, vital not only for the business community but for all citizens. Indeed, when federal statistics are bent for politics, the cost ripples through every boardroom, newsroom, and household. Objective decision making relies on the best available data, especially federal data, to understand trends like employment and inflation, and to set expectations for the future. Thus, without trust in federal statistical reports and agencies, every decision relying on them suffers. A Culture of Objectivity The reliability and integrity of the Bureau of Labor Statistics (BLS),...

The March, 2025 uptick in Black unemployment raises significant concerns, particularly in light of substantial job cuts within the government sector. Our analysis shows two things: 1. Research suggests these layoffs have disproportionately affected Black workers, exacerbating existing economic disparities. 2. In light of the decline in Black unemployment, the report of an additional 225,000 jobs being added is suspect. In March 2025, the unemployment rate for Black workers increased to 6.2%, up from 6.0% in February. This results in an increase of approximately 44,392 individuals from February to March 2025. The rise aligns with projections made last month by Creative Investment Research, which anticipated that Black Americans would lose approximately 78,000 jobs between January and February, primarily due to reductions in government employment. https://www.blackenterprise.com/report-black-folks-could-make-up-almost-80k-of-employees-out-of-work-after-february-job-cuts-primarily-in-gov...

AT almost that three times the level reported in December, 2019, Friday's Black unemployment rate number is surprising and unfortunate, no matter what partisan policymakers and economists say. Remember, our expectation (and hope) was that fiscal and monetary policy actions would limit the initial damage. The Paycheck Protection and Economic Injury Disaster Loan programs certainly helped keep May's unemployment rate below 20%, but the numbers show that more focused fiscal and monetary policy actions, coordinated on a global level, are needed. In our comment on the Economic and Social Costs of "Reopening" America, we estimated that U.S. small businesses would need $6 trillion on an annual basis to ensure their survival through the coronavirus crisis. This was confirmed by the head of the Federal Reserve Bank of Atlanta. (See: https://twisri.blogspot.com/2020/04/economic-and-social-costs-of-reopening.html ). Unfortunately the unemployment numbers sho...