Economic Recovery? Not for Ferguson or Black America
MSNBC - March 13, 2015, by Jane Timm - “America is coming back,” President Obama declared late last month, touting...
MSNBC - March 13, 2015, by Jane Timm - “America is coming back,” President Obama declared late last month, touting strong job creation and rising wages. “We’ve risen from recession.” But for Ferguson, Missouri – and black America as a whole – the recovery still hasn’t come.
“Black unemployment rates are still at the height of the national unemployment rates during the Great Recession,” the Center for Popular Democracy’s Connie Razza told msnbc. “We’re still in a recession in black America.”
Indeed, while American unemployment is down to 5.5%, black unemployment is at 10.4%. While wages have risen over the last 15 years by 45 and 48 cents for Latino and white workers, respectively, they’ve fallen 44 cents for black workers, according to a study produced by Razza at the left-leaning organization. The net wealth of African-American families, too, is hurting. “As the wealth of the other groups is stabilizing in the wake of the recession, the wealth of the African-American community is declining,” Razza added.
Blacks have long faced unemployment rates that are double those of white workers – according to Pew, it’s been that way since 1954 – but sources say the recession has hurt black America, and the St. Louis region, particularly hard. “It’s not just a recession of jobs, it’s a recession of income; it’s a recession of wealth in the sense that a whole lot of homes in Ferguson are still under water. It’s a three-way disaster for people in that part of St. Louis county,” Dave Robertson, a political science professor at the University of Missouri at St. Louis, told msnbc. “In places like Ferguson, it’s not coming back quickly.
The most recent racial employment breakdown indicates that Missouri’s problems may be worse than the rest of the country’s, too. In Missouri, black unemployment was 15.7% in the fall of 2014 – triple the state’s 4.5% white unemployment at the time.
“It’s not just unemployment,” Robertson added. “It’s the poor wages, it’s the under-employment, it’s the part-time work.”
And economic inequality is fueling the protests and activist movement, sources said. “There’s a real sense of despair especially for those young folks. You just don’t have the economic opportunities for young people. Especially young people coming out of sub-standard school districts … not having the tools prepared for the economy,” Ferguson activist Umar Lee told msnbc. “And then there’s a shortage of jobs, leaving young people at a disadvantage, and so they just drop out.”
“That’s the driving force, we believe,” former state Sen. Maida Coleman told msnbc. She’s heading up Gov. Jay Nixon’s Office of Community Engagement, a state office formed in the wake of August’s protests to focus on low-income and minority communities. “What’s happening now is that we see a real need to address these high levels of unemployment, just as we are addressing education,” Coleman said. “The hopelessness needs to be addressed.”
But the problem extends beyond Ferguson; when there are jobs to be had, black Americans struggle to get hired.
A 2013 study found that black college grads had twice the unemployment rate of white college grads and that racial inequality actually grew during the recovery. A 2014 study by nonpartisan education and economic advocacy group the Young Invincibles found that black workers need college credit to compete with white high school drop-outs thanks to racial discrimination.
Getting an interview may be half the battle, too. A 2003 study found that very white-sounding names received 50% more callbacks for interviews than a very black-sounding name.
For these reasons, Razza and the Center for Popular Democracy are urging the Federal Reserve to keep interest rates low. The Fed had vowed to keep rates low until employment dipped below 6.5% and the recovery came in earnest, but Razza argued that the country needs to be closer to “full employment”—that is there are close to the same number of jobs as people who want to work—before the Fed can really stop intervening. “The fact that black Americas are still experiencing a recession is really … the canary in the coal mine of the recovery,” she said.
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#WeRise Supporters Rally at the NH Statehouse
Concord Patch - March 13, 2015, by Tony Schinella - About 40 people gathered at the Statehouse this week to protest a...
Concord Patch - March 13, 2015, by Tony Schinella - About 40 people gathered at the Statehouse this week to protest a political system rigged on behalf of big corporations and the wealthy, according to a press statement.
The rally was part of a “Day of Action” involving thousands of protesters in 16 states across the country.
In Concord, the event drew activists from NH Citizens Action, the NH Rebellion, American Friends Service Committee, Open Democracy, Granite State Progress, People For the American Way, Every Child Matters and other New Hampshire organizations.
“Congress needs to stop acting like a wholly-owned subsidiary of multinational corporations,” said Ben Cohen, co-founder of Ben & Jerry’s Ice Cream and Head Stamper of StampStampede.org told the protesters. “When billions of dollars are being poured into our elections, government stops serving the people and serves the corporations instead.”
Cohen cited a Sunlight Foundation study showing that politically-active corporations get back $760 in government benefits for every dollar they spend influencing politics. “People watch this stuff happening, and they’re angry about it. People in both parties are angry about it. Our elected officials are supposed to be serving us, their constituents, and instead they’re spending our tax dollars subsidizing corporations.”
“It’s time to take our government back,” Cohen said. “If ‘We the People’ can’t out-spend the corporations, we can at least out-shout them. That’s why StampStampede.org is turning US currency into millions of miniature political billboards, by legally stamping it with messages like ‘Not to Be Used for Bribing Politicians.’ Every stamped dollar bill is seen by about 875 people. That means if one person stamps three bill a day for a year, the message will reach almost 1 million people. It’s a petition on steroids,” said Cohen.
There are over 30,000 stampers across the country and hundreds in New Hampshire. StampStampede.org has also recruited over 50 small businesses in the state to set up small point-of-purchase stamping stations where customers can stamp their dollars, buy a stamp and learn more about the influence of money in politics.
“Our goal is to stamp 3.4 million bills – that’s 10% of the currency in New Hampshire – before next February’s presidential primary,” said Cohen, “It’s monetary jiu-jitsu – we’re using money to get money out of politics”
The nationwide “Day of Action” was sponsored by National People’s Action, Center for Popular Democracy, and USAction. “All across the country, families are taking to the streets, parks and state capitols to send a clear message: ‘Our statehouses and our cities belong to us. It’s time for legislators to enact our bold agenda to put people and planet first.’”
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Activists Call for End to ‘Economic Racism’
The St. Louis American - March 12, 2014, by Rebecca Rivas - African-American residents are sick and tired of hearing...
The St. Louis American - March 12, 2014, by Rebecca Rivas - African-American residents are sick and tired of hearing about an economic recovery that does not apply to them, said Derek Laney, an organizer for Missourians Organizing for Reform and Empowerment.
In St. Louis, the unemployment rates for the black community remains triple the rate of white residents, 14.1 percent for blacks compared to 5.7 percent for whites, he said. However, some economists claim that the economy is rapidly approaching full employment.
“Is there only one set of the population that matters?” Laney said. “And if they are all right, we’re all right? That’s something we can’t accept.”
On Thursday, March 5, activists attempted to ask James Bullard, the president of the Federal Reserve Bank of St. Louis, those same questions. At noon, a coalition of community-based organizations, faith leaders, elected officials, labor unions and service organizations gathered in front of the St. Louis Fed in downtown St. Louis as a part of the national Fed Up Campaign (whatrecovery.org).
They pointed to a new report by the Center for Popular Democracy released this month that details the difficulties for African-American families to find living-wage employment. The report is titled, “Wall Street, Main Street, and Martin Luther King Jr. Boulevard: Why African Americans Must Not Be Left Out of the Federal Reserve’s Full-Employment Mandate.”
In response to the protest, a St. Louis Fed spokeswoman stated in an email to The St. Louis American: “We are aware of the protest at the St. Louis Fed and respect people’s right to protest peacefully.”
The coalition asked Bullard to prioritize full employment and rising wages for all communities. Laney said as the economy starts to recover, some are calling for the Fed to raise interest rates to prevent wages from rising – which would severely impact families still struggling to recover from the Great Recession. In mid-March, the St. Louis Fed and its leaders will meet to discuss policy. Laney said they hoped the action will help “shape those discussions.”
The report emphasizes that the Federal Reserve is responsible for keeping inflation stable, regulating the financial system and ensuring full employment.
“These mandates reflect the tension between the interests of Wall Street on the one hand and Main Street and Martin Luther King Jr. Boulevard on the other,” the report states. “As a general matter, corporate and finance executives want to limit wage growth – or, as they call it, ‘wage inflation’ – and to maximize their future profits from lending money.”
The report argues that in past decades, the Federal Reserve resolved this tension in favor of banks and corporations, intentionally limiting wage growth and keeping unemployment excessively high.
“The Fed’s policy choices over the past 35 years have led to increased inequality, stagnant or falling wages, and an American Dream that is inaccessible to tens of millions of families – particularly black families,” the report states.
Since the Ferguson movement began, many local and national leaders have emphasized the need to address the “structural racism” in the region.
“Economic racism cannot be delinked from racism by law enforcement and other governmental entities,” according to the coalition’s statement. “However, James Bullard has been silent on issues of economics and their impacts on communities of color in the region over the past seven months. Today, we are bringing these issues to his front door.”
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Poll: Voters like Charter Schools but Want More Oversight
The Seattle Times - March 12, 2015, by Leah Todd - Voters want greater oversight for charter schools and more assurance...
The Seattle Times - March 12, 2015, by Leah Todd - Voters want greater oversight for charter schools and more assurance that charters — independently run but publicly funded schools — won’t hurt other public schools by drawing students away, a new national poll suggests.
Two education policy groups that are generally skeptical of charters — In the Public Interest and the Center for Popular Democracy — conducted the poll, which involved interviews with 1,000 randomly selected registered voters from across the country.
They found that while the public is mostly supportive of charter schools, most voters surveyed said they wanted better financial auditing and oversight. Though nearly one in three respondents said they knew nothing about charter schools, 62 percent said they would prefer to decrease or keep the same number of charters in their area.
A lack of choice about where to send children to school wasn’t a major issue among the voters interviewed — only about 10 percent listed that as a top concern.
The top areas of concern for those surveyed were lack of parental involvement, too much focus on standardized tests and large class sizes.
The voters surveyed overwhelmingly supported audits of charter schools’ finances to detect fraud or waste, and said that before a charter school opens, its impact on nearby public schools should be studied.
The former is already happening in Washington state, where the charter school commission has increased its oversight of the state’s lone charter following financial and organizational problems. The commission has added more financial reporting to its charter application process and has ordered a state audit into the school’s finances.
This year, lawmakers in six states considered bills to limit the number of charter schools in their states, and nine states proposed increasing charter-school transparency and adding oversight, according to Kyle Serrette, director of education at the Center for Popular Democracy.
In Washington, Sen. Jeannie Darnielle, D-Tacoma, proposed a bill that would mandate performance audits for charters and allow no more than three charter schools to open simultaneously in any single school district. The bill died in committee.
You can dig into more of the poll’s results here.
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Thousands Today Say #WeRise To Reclaim Government For The People
Campaign for America's Future - March 11, 2015, by Isaiah J. Poole - At the office of Illinois Gov. Bruce Rauner, more...
Campaign for America's Future - March 11, 2015, by Isaiah J. Poole - At the office of Illinois Gov. Bruce Rauner, more than 2,500 demonstrators, most wearing white “We Rise” T-shirts, staged a protest against cuts in Medicaid and other social services. In Albany, N.Y., more than 2,000 people marched to the state capitol to protest education funding cuts. In Denver, dozens of activists came out in support of immigration rights measures, including driver’s licenses for undocumented workers.
These are just a few of the dozens of actions that took place in 16 states today as part of “We Rise: National Day of Action to Put People and Planet First.” Local and national progressive organizations mobilized around different aspects of a common agenda that stood in opposition to the right-wing and corporatist policies pushed through state legislatures in these states. The actions were all broadcast under the Twitter hashtag “#WeRise.”
“What we saw today was a stirring of the democratic spirit,” said Fred Azcarate, Executive Director of USAction. “People are upset at elected officials who spend more time working for big corporations and wealthy campaign donors than representing the people they were elected to serve. Today, people rose up to reclaim government and demand that legislators work for them and their families.”
The states where We Rise demonstrations were organized also include Arizona, Georgia, Idaho, Kansas, Massachusetts, Minnesota, New Jersey, Nevada, New Hampshire, Ohio, Pennsylvania and Wisconsin. The events were led by groups affiliated with National People’s Action, Center for Popular Democracy, USAction, and other allies.
“Apparently conservatives believe they have a mandate to give big corporations another free ride on the backs of everyday people,” said George Goehl, Executive Director of National People’s Action. “But they’re wrong. They have no such mandate. Instead, as we can see in the resistance to draconian policy or Chuy Garcia’s campaign to unseat Rahm Emanuel as Mayor of Chicago, there is a new brand of populism taking root in America. People are fed up with politicians doing the bidding of big money. They’re ready for leaders who will work for, not against, people and the planet.”
“Politicians working primarily on behalf of big corporations are making it harder and harder for families to get by,” said Ana María Archila, Co-Executive Director of The Center for Popular Democracy. “Our families won’t stand for this, and today thousands of workers and families raised our voices in state houses across the country to demand that elected officials join us in leveling the playing field so that each and every family can thrive.”
The Campaign for America’s Future is working with two of the organizations behind today’s “We Rise” events, National People’s Action and USAction, in sponsoring the “Populism2015″ conference in April, with the Alliance for a Just Society. One goal of that conference is to build political momentum from today’s events around a populist progressive agenda “for people and the planet.” Register for the April 18-20 conference in Washington through the Populism2015 website.
Thousands Today Say #WeRise To Reclaim Government For The People
Campaign for America's Future - March 11, 2015, by Isaiah J. Poole - At the office of Illinois Gov. Bruce Rauner, more...
Campaign for America's Future - March 11, 2015, by Isaiah J. Poole - At the office of Illinois Gov. Bruce Rauner, more than 2,500 demonstrators, most wearing white “We Rise” T-shirts, staged a protest against cuts in Medicaid and other social services. In Albany, N.Y., more than 2,000 people marched to the state capitol to protest education funding cuts. In Denver, dozens of activists came out in support of immigration rights measures, including driver’s licenses for undocumented workers.
These are just a few of the dozens of actions that took place in 16 states today as part of “We Rise: National Day of Action to Put People and Planet First.” Local and national progressive organizations mobilized around different aspects of a common agenda that stood in opposition to the right-wing and corporatist policies pushed through state legislatures in these states. The actions were all broadcast under the Twitter hashtag “#WeRise.”
“What we saw today was a stirring of the democratic spirit,” said Fred Azcarate, Executive Director of USAction. “People are upset at elected officials who spend more time working for big corporations and wealthy campaign donors than representing the people they were elected to serve. Today, people rose up to reclaim government and demand that legislators work for them and their families.”
The states where We Rise demonstrations were organized also include Arizona, Georgia, Idaho, Kansas, Massachusetts, Minnesota, New Jersey, Nevada, New Hampshire, Ohio, Pennsylvania and Wisconsin. The events were led by groups affiliated with National People’s Action, Center for Popular Democracy, USAction, and other allies.
“Apparently conservatives believe they have a mandate to give big corporations another free ride on the backs of everyday people,” said George Goehl, Executive Director of National People’s Action. “But they’re wrong. They have no such mandate. Instead, as we can see in the resistance to draconian policy or Chuy Garcia’s campaign to unseat Rahm Emanuel as Mayor of Chicago, there is a new brand of populism taking root in America. People are fed up with politicians doing the bidding of big money. They’re ready for leaders who will work for, not against, people and the planet.”
“Politicians working primarily on behalf of big corporations are making it harder and harder for families to get by,” said Ana María Archila, Co-Executive Director of The Center for Popular Democracy. “Our families won’t stand for this, and today thousands of workers and families raised our voices in state houses across the country to demand that elected officials join us in leveling the playing field so that each and every family can thrive.”
The Campaign for America’s Future is working with two of the organizations behind today’s “We Rise” events, National People’s Action and USAction, in sponsoring the “Populism2015″ conference in April, with the Alliance for a Just Society. One goal of that conference is to build political momentum from today’s events around a populist progressive agenda “for people and the planet.” Register for the April 18-20 conference in Washington through the Populism2015 website.
Allentown School Director, Others Rally for Education Funding Boost at Sen. Pat Browne's Office
Allentown School Director, Others Rally for Education Funding Boost at Sen. Pat Browne's Office
The Express-Times - March 11. 2015, by Precious Petty - Pennsylvanians on Wednesday rallied in cites across the...
The Express-Times - March 11. 2015, by Precious Petty - Pennsylvanians on Wednesday rallied in cites across the commonwealth and urged state legislators to put people first.
A dozen Lehigh Valley residents gathered outside Sen. Pat Browne's West Hamilton Street office in Allentown. They chanted "Listen up, Pat Browne" and displayed signs printed with the message "We rise," sometimes drawing shouts or honks of support from passersby.
Keystone Progress organizer Nicole Matos led demonstrators as they called for an education funding boost, a higher minimum wage, equal pay for women and increased Medicaid spending. Similar rallies occurred all morning and afternoon in Jim Thorpe, Pittsburgh, York and five other Pennsylvania cities, she said.
Matos, of Stroudsburg, said too many of the state's elected officials are making decisions that advance corporate interests while exacerbating inequality, hurting low-income and minority families, damaging the environment and weakening the nation's democracy.
National Day of Action rally on March 11, 2015 A National Day of Action rally was held March 11, 2015, outside Sen. Pat Browne’s office in Allentown.
Allentown School Board member CeCe Gerlach said more than 1,300 students have dropped out of city schools over the last three years and inadequate education funding is contributing to the problem.
"They've dropped out, partly, because our class sizes have increased. They've dropped out because we don't have enough textbooks all the time. They've dropped out because the teachers aren't able to pay each student the amount of individual attention that they require," said Gerlach, who was among the demonstrators.
"They've dropped out because many of them need jobs because their families, who are working at minimum wage, can't afford to pay their rent."
She said Browne has gone to bat for Allentown schools before and she's hopeful he'll step to the plate again this budget season.
"He's come through for the Allentown School District in the past," Gerlach said. "I'm hopeful he'll come through for the Allentown School District now."
Keystone Progress in a news release said the organization staged rallies outside the offices of legislators whose recent actions undercut public education. Browne, along with other Republican Senate leaders, sent school superintendents a letter advising them not to count on getting the education funding that's part of Gov. Tom Wolf's budget proposal.
A staffer at Browne's office declined comment about the rally, which was timed to fall on the National Day of Action.
Keystone Progress joined with National People's Action, Center for Popular Democracy and USAction to mark the day and send the message that it's time for legislators to put people and the planet first, the release says. People in 23 states participated in rallies and other events.
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Fed Should “Freeze Interest Rates, Involve Citizens” Says Neighborhoods Organizing For Change
Fed Should “Freeze Interest Rates, Involve Citizens” Says Neighborhoods Organizing For Change
The Uptake - March 10, 2015, by Bill Sorem - Not everybody is benefiting equally from the economic recovery. A new...
The Uptake - March 10, 2015, by Bill Sorem - Not everybody is benefiting equally from the economic recovery. A new report shows in Minnesota blacks are suffering disproportionally to whites when it comes to employment.
Anthony Newby, Executive Director of Neighborhoods Organizing for Change (NOC), delivered a report of about the current economic state of people of color in Minnesota and specifically the current and possible role of the Federal Reserve Bank. The new report from the Center for Popular Democracy says since 2000, wages in Minnesota have declined by 4.5%, current unemployment rate for blacks is 10.9% vs a white rate of 2.8%.
This is the link to the full report “Wall Street, Main Street, and Martin Luther King Jr. Boulevard: Why African Americans Must Not Be Left Out of the Federal Reserve’s Full-Employment Mandate”
Newby argues that the Fed in addition to controlling interest rates, can control the rate of unemployment. He and Rev. Paul Slack, ISIAH President, ask that interest rates be kept at the current levels and that the Fed work to reduce unemployment.
Why there is a Federal Reserve
The nation’s central bank, the Federal Reserve, was created on December 23, 1913, with the enactment of the Federal Reserve Act, largely in response to a series of financial panics. There had been strong resistance to a central bank since the founding of the nation. The Fed was given the power to print money, establish bank interest rates and a number of sweeping powers. It is an independent entity within government, ownership of each of the 12 banks is claimed be the member banks, but the actual fiscal ownership is obscure. The ability to print money and loan it to the government is at the heart of its power and for many, a controversial power. President Kennedy challenged the authority of the Fed with Executive Order 11110, June 4, 1963 and he attempted to eliminate our current paper money, the Federal Reserve Note replacing it with US Notes. He did not succeed.
Newby further requested more transparency in the actions of the Fed and asked for more ordinary citizen participation. The current president of the Federal Reserve Bank of Minneapolis, Narayana Kocherlakota, has indicated a willingness to keep interest rates low and to move towards more citizen participation in the actions of the Fed. However, he retires in a year. Newby would like citizens to have input on his successor.
Rev. Slack asked for justice and compassion in the Fed policies, in part to undo past unfair actions.
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New Report: Racial Disparities Continue at an Alarming Rate for Black Communities
KPFT Houston Radio - March 6, 2015, by Tucker Wilson - CPD's Policy Advocate Shawn Sebastian joins KPFT Radio to...
KPFT Houston Radio - March 6, 2015, by Tucker Wilson - CPD's Policy Advocate Shawn Sebastian joins KPFT Radio to discuss racial disparities in unemployment and how the Federal Reserve can build a strong economy for all communities.
Listen to the clip here.
Black Unemployment Rate 2015: In Better Economy, African-Americans See Minimal Gains
International Business Times - March 8, 2014, by Aaron Morrison - Cyril Darensbourg has been unemployed for 10 years....
International Business Times - March 8, 2014, by Aaron Morrison - Cyril Darensbourg has been unemployed for 10 years. As shocking as he knows that sounds to those who don’t know him personally, the 48-year-old native of New Orleans had enjoyed a 15-year career managing restaurants in Chicago and New York, after taking a chance on a dream and ending his third year of studying electrical engineering in Louisiana. Years of job-application submissions and temporary work here and there has persisted for far too long. Darensbourg is one of close to 2 million African-Americans in the U.S. who are currently unemployed and looking for work.
Across the American economy, the dominant story during the past several months has been a sustained recovery that resuscitated a dormant job market and the accompanying unemployment rate that has plunged below pre-Great Recession levels. But if better days are here for many workers, this feeling is shared to a lesser degree by African-Americans, whose unemployment rate is still considered high and has long been double the rate for whites. Among black working-age people, however, the unemployment rate since February 2014 has dropped more quickly than among nonblack workers.
On the surface, that improvement should signal a triumph, but it is accompanied by an asterisk, given the fact that nonblack workers’ unemployment rates fell much earlier and faster during the recovery. Government data indicates recent job creation has been less beneficial to African-American workers when compared with whites, Asians and Hispanics: Basically, blacks had more ground to make up and their labor-force representation is skewed toward lower-wage industries in which there are higher turnover rates, one study found.
These clear-cut differences mean that for people such as Darensbourg, who have been out of work for periods of several months or several years, other factors exaggerate the length of their unemployment. Many African-Americans find it hard to dismiss completely the role that race plays in their difficulty finding work, even with federal laws making discrimination illegal. Studies have found that even when black applicants possess qualifications that are on par with white applicants, variables as simple as their names or as complex as the breadth of their professional networks can many times hold them back.
“I’ve never felt secure, in my entire adult life working,” said Darensbourg, who is now married with two kids and living with his family in a New York apartment. After the 9/11 terrorist attacks in 2001 eliminated his management-level job at a restaurant located within the no-traffic zone, he was forced to look for work in other restaurants, which he said wouldn’t pay him at his previous annual salary of nearly six figures.
“I’ve been in disbelief,” said Darensbourg, a 6-foot-5-inch, 220-pound man who is often told his presence is at worst intimidating and at best unforgettable. During an interview for a job he was certain he would get, he recalled feeling his younger, white, female interviewer was put off by his size and confidence. “Over time, I didn’t know what to do,” he said of the experience.
“People in my situation are giving up. They are just adapting their lives to where they are. I’m not thinking about trying to buy a home or going on vacation. I don’t know how retirement is going to work,” Darensbourg said.
Unemployment Among Blacks Still High
In February, the unemployment rate for African-Americans was 10.4 percent, while the comparable rates for whites, Hispanics and Asians were 4.7 percent, 6.6 percent and 4.0 percent, in that order, according to data released by the U.S. Bureau of Labor Statistics Friday. The national unemployment rate was 5.5 percent last month. Last year, 23.7 percent of those who are black and unemployed had attended some college, 15.4 percent had bachelor’s degrees and 4.5 percent had advanced degrees.
A 2014 study by the Young Invincibles, a nonpartisan education and economic opportunity advocacy group, found an African-American college graduate has the same job prospects as a white high-school dropout or a white person with a prison record. The study attributed the gap to racial discrimination.
The experience of joblessness for African-Americans can have a lasting effect on their economic mobility, according to the Center for Popular Democracy, a liberal think tank in New York that released a report on black unemployment this week. It was prepared with the technical assistance of the nonpartisan Economic Policy Institute in Washington. On an hourly basis during the past 15 years, black workers’ wages have fallen by 44 cents, while Hispanic and white workers’ wages have risen by 48 cents and 45 cents, respectively, according to the report. Black wealth has also shrunk, while Hispanic and white wealth has stabilized.
Since March 2010, black employment climbed by about 2.3 million jobs, a 15.0 percent increase, and the black employment-population ratio rose to 54.8 percent from 52.0 percent, according to government data. Over the same period, white employment climbed by about 3.8 million jobs, a 3.4 percent increase, and the employment-population ratio rose to 60.1 percent from 59.5 percent. Because whites had less ground to make up, the increase for blacks, while statistically significant, still wasn’t large enough to suggest that they reaped more than a modest share of the gains in the economic recovery.
Most jobs that came back during the recovery, close to 45 percent, were lower-wage jobs, such as those in the retail and service industries, according to the Center for Popular Democracy’s report. Those industries employ 1.85 million more workers today than they did at the beginning of the recession. The data indicate African-American representation is skewed toward the lower-wage end, rather than toward either the mid-wage range or higher-wage end, where fewer jobs came back.
The center said the U.S. Federal Reserve’s recovery initiative to stimulate job creation through its monetary policies has been most beneficial to workers in higher-wage industries and to workers in regions of the U.S. where those jobs exist, such as on Wall Street. Even with the apparently gloomy outlook, economists say things are improving for black job seekers. “The economic recovery is finally beginning to take hold,” said Valerie Wilson, the director of the Economic Policy Institute’s Program on Race, Ethnicity and the Economy. “The rate of growth that we’re seeing now, this has only been happening for a year.”
Economists have stressed the Fed’s focus should be on genuine full employment. That’s been President Barack Obama’s argument for addressing joblessness among all Americans. But critics have said this approach ignores structural reasons -- lower educational attainment and higher rates of criminal convictions -- for African-American joblessness that is more prone to fluctuation than whites. “Assuming that monetary policy continues to function in a way that allows the recovery to proceed, the prospects for finding a job should improve for African-Americans,” Wilson said.
Education Can Make A Difference (Usually)
African-Americans who have achieved higher-education degrees -- a key investment leading to the middle class -- still find themselves more likely to face long-term unemployment than their white, Hispanic and Asian counterparts. According to the Center for Popular Democracy’s study, the only proven solution to this problem are those Fed programs that ideally stimulate job creation for workers of all experience and skill levels. But that still has not been robust enough to help the broadest swath of African-American workers.
Tamica Thompson said she could use preferential hiring consideration, although she didn’t believe she needed it before her long-term unemployment set in. Thompson’s difficulty in finding a job puzzles her. A 30-year-old born to Jamaican immigrants in New York, Thompson joined the U.S. Army in 2002, right after she graduated from high school. She was stationed in South Korea, and left active duty four years later to earn a bachelor’s degree in health-service management from Berkeley College in New York. She later obtained a master’s degree in public administration from Pace University in New York.
But even with those credentials and her military experience, Thompson has struggled to find a job that values her skill set. When she did interview for a promising job at a nonprofit development corporation -- for which the hiring manager told her she was the sole applicant -- she later discovered the position was given to someone else. She also worried that the formatting of her paper resume, which received a harsh critique from a job-placement counselor, was a factor in the length of her unemployment.
“I was unemployed for a good eight months until I found myself here,” Thompson said, referring to a stipend-supported internship for Operation: GoodJobs, a work-placement program run by the Goodwill Industries for Greater New York and Northern New Jersey, an initiative that helps military veterans and their families find jobs and training opportunities. The irony of her current situation is not lost on Thompson, who works to help other veterans find jobs while she scrapes by on the stipend. “Because I was not working, I was getting behind on my rent. I couldn’t do even the simple things anymore. Money was so limited for me. That caused me to be depressed, sad and angry. It’s a little better now, but I’m still struggling,” she said.
Race And Class Are Factors In Unemployment
Despite federal laws protecting women and racial minorities from discrimination by employers, several studies point to racial prejudices and favoritism as big contributors to how blacks fare in the job market. A 2004 study by the American Economic Review found job seekers with resumes that had so-called white-sounding names received 50 percent more callbacks for interviews. Names such as Jamal or Lakisha or others that are perceived as black-sounding names, received fewer callbacks. That racial gap is uniform across occupation, industry and employer size, researchers found.
Another study, conducted by the business school at Rutgers University in New Jersey, found that favoritism, or the race of the hiring manager, was a contributing factor to racial disparity in the workplace as well. The prevalence of a mind-set in the U.S. that the rich worked hard for everything they have and poor haven’t toiled enough certainly doesn’t help matters, said Sam Brooke, an attorney with the Southern Poverty Law Center, a nonprofit organization based in Montgomery, Alabama, that tracks racial disparity and hatred. “There’s a deep, fierce resistance to setting aside that idea,” Brooke said. “That’s an incredibly valuable part of the story that we tell about America. If you view it just through that lens, it’s hard to see how we’ll overcome” the disparities, he said.
The Civil Rights Act of 1991 made changes to a law passed in the 1960s that protected workers from intentional employment discrimination based on race, sex, religion and national origin. It also provided monetary damages in cases of proved discrimination. But few cases are won in U.S. courts, and a comparatively small proportion are resolved by settlements, according to federal data.
Darensbourg, the unemployed former restaurant manager, hasn’t considered a lawsuit against a prospective employer, even when he suspected that there was something more to its rejection of him than his qualifications. “I’m pushing my kids to do way better than I did in school,” he said. “I can’t pay for them to go to school. I don’t know how that would happen unless they got a scholarship. I tell my daughter that she is not just competing with the kids at her school; she’s competing with the whole world. I try to have them see stuff that my parents didn’t show me.”
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