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lindagray

Black workers have fewer well-paying, stable jobs with decent benefits than white workers

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The hurdles that African Americans face in the labor market from discrimination, pay inequality, and occupational steering are also apparent in indicators of job quality and not just in measures of job availability. Black workers, for example, typically get paid a great deal less than white workers. The typical median weekly earnings for Black full-time employees was $727 from July 2019 to September 2019, compared with $943 for whites. (see Figure 5) Comparing wages for men and women broken down by race and age again shows that these wage differences persist among full-time workers, indicating that massive gaps in economic security persist even when the labor market is strong. Lower wages for Black workers then translate into lower savings as families have less money left over after paying their bills.

Black-Unemployment_webfig-5.png

African Americans also receive fewer employer-provided benefits than white workers. Only a little more than half of African Americans—55.4 percent—had private health insurance in 2018, compared with 74.8 percent of whites. Craig Copeland, a researcher at the Employee Benefits Research Institute, estimates that among full-time, year-round workers, African American workers were 14 percent less likely than white workers to have any type of retirement plan through their employer. Fewer workplace benefits make it harder for African Americans to save, since they face higher costs and less help in preparing for retirement than their white counterparts.

Not only do African Americans work for less pay with fewer benefits, they also face much greater job instability than whites. African Americans often work in occupations and industries that are economically less stable, such as retail services and parts of the health care sector including home health aides and nursing home workers. Moreover, African Americans tend to feel the fallout from a recession more intensely than do whites, as discussed below, and they then tend to be out of a job longer than other unemployed workers. (see Figure 6)

African Americans’ employment fluctuates more than it does for whites. The employed share of prime-age African American workers fell by 8.3 percentage points from 75 percent just before the Great Recession started in September 2007 to a low of 66.7 percent in October 2011. (see Figure 5) In comparison, the respective share of white workers dropped by only 4.5 percentage points, from 81 percent in November 2007 to 76.5 percent in July 2010.

Moreover, jobs for African Americans tend to disappear sooner when the economy sours and come back later when the economy improves—a phenomenon often described as “last hired, first fired.” The decline in prime-age employment rates associated with the Great Recession started two months sooner for African Americans than whites and lasted 15 months longer than it did for white workers. (see Figure 5)

Unemployed African American workers look longer for a new job than whites. From September 2018 to September 2019, the average length of unemployment for unemployed African American workers was 25.5 weeks, compared with only 20.8 weeks for unemployed white workers. (see Figure 6)

Black-Unemployment_webfig-6.png

 

americanprogress.org

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