Understand the unemployment gap | COVID-19
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Happy Sunday,
Today we continue our weekly reporting on the impact of COVID-19 on communities of color. The unemployment gap is a critical economic indicator of the growing disparities between each group, and important for us to watch as we struggle to recover from this global pandemic.
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Nicole
TAKE ACTION
Check-in with your neighbors to see if you can support with childcare, assisting with groceries, or running errands.
Make a donation to your local food bank or other community center offering services to meet the basic needs of those in need.
GET EDUCATED
On Saturday, Trump signed four executive orders to provide economic relief as COVID-19 persists across the nation. One of which authorizes the federal government to pay an additional $300 a week for unemployment, calling states to add $100 and ensure a $400/week extension (NPR). The $600/weekly unemployment benefits implemented in an earlier relief package expired in July.
Considering the gross disparities in the impact of COVID-19 on communities of color across the board, this may come as no surprise. But as of July 2020, the gap in U.S. Black and white unemployment rates is the widest it has been for the past five years (Reuters). The white unemployment rate is roughly at 10.1%. In contrast, the Black unemployment rate is 15.4% (Reuters). This five percentage point does include a slight rebound of employment since COVID-19 hit across both groups. Still, the rebound rate is significantly slower, indicating that Black people will be disproportionately delayed in finding roles as the economy recovers. These trends persist across other racial/ethnic groups; The unemployment rate for Hispanic workers is at 14.5%, closely tailing the unemployment rate for Black people. The unemployment rate for Asian workers hovers at 13.8% (Reuters).
The global pandemic didn’t create this disparity. Although the national unemployment rate was at a 50-year low before COVID-19 (Quartz), Black people were still twice as likely to be unemployed than their white counterparts (ProPublica). Since the Great Recession of 2010, we’ve watched the unemployment rate of Black communities recover more slowly than the unemployment rate for white workers. This lag in delivery, compounding with a more profound disparity in employment opportunities for communities of color, created the unequal foundation for the COVID-19 impact to exacerbate (ProPublica).
“The Black unemployment rate is always ridiculously high, but we don’t treat it like a crisis.”
Jessica Fulton, vice president of the Joint Center for Political and Economic Studies, for ProPublica
Initially, reports indicated that differences in education contributed to the disparities; new data shows that can’t be the only factor. Institutionalized racial discrimination, found in anything from how resumes are screened and interviews are conducted to mentorship, job training, and promotions opportunities, is a significant contributor (Quartz).
These trends are more evident when cross-analyzed with other data. Unemployment rates in some cities, for example, are disproportionately larger between white and Black populations than others, according to data compilated by Quartz. In Minneapolis, the center of the national protests back in May, the unemployment rate for Black people is nearly 4x the unemployment rate for white people (Quartz). The city recently declared racism as a public health emergency to allocate resources and capacity for addressing the systemic inequities pervasive through the city (CBS News).
The trends persist even in wealthier households. Although unemployment rates are lower for roles usually reserved for those with college degrees, data indicates that Black people are still more likely to be unemployed (ProPublica). Explore more data in this comprehensive visualization by ProPublica.
It’s also important to note that the unemployment rate is disproportionately affecting women. The unemployment rate for women at 10.5% is larger than the 9.4% of men (Forbes). For communities of color, this is especially damaging, considering women of color face with mounting issues like lower salaries, increased harassment and bullying, and harsher evaluations (Business Insider). Disruption to employment may make it more difficult for these women to secure these roles again or re-establish boundaries to keep themselves safer. Also, many women of color are the financial mainstays for their families. 67.5% of Black mothers and 41.4% of Latina mothers were the primary or sole breadwinners for their families, compared with 37% of white mothers (American Progress). These financial disruptions can create immediate hardship and create economic issues that can last generations.
As businesses begin to deteriorate because of this virus and more people lose their jobs, it may be wise for our government to consider an unemployment strategy that centers those most impacted to help assist the disproportionate impact of this virus on so many communities of color.
KEY TAKEAWAYS
The unemployment gap between Black and white workers is the highest it's been in the past five years
COVID-19 has exacerbated persistent trends in unemployment for communities of color
Racial discrimination, along with education and mass incarceration, are major factors in the unemployment rate
Women of color are disproportionately impacted
RELATED ISSUES
7/27/2020 | Support Asian Americans through COVID-19.
7/19/2020 | Rally for representation in science and research: COVID-19 and CDC.
7/12/2020 | Learn how air pollution exacerbates COVID-19.
7/5/2020 | Support the Navajo Nation through COVID-19.
6/21/2020 | Protect essential workers: Racial Disparities of COVID-19
6/14/2020 | Learn how racism is a public health crisis.
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