- [Reporter] After two months of unprecedented increases,
the US unemployment rate took a surprising turn in May.
It went down.
This dip was a hopeful sign
that the economy might be bouncing back
from coronavirus lockdowns.
But that dip wasn't universal.
Black unemployment ticked upwards.
This follows a decade where the unemployment gap
between white and black workers has been narrowing.
But the recent unemployment figures
revealed the financial fragility
that has persisted for many black workers
since the last recession,
fragility that has left employees
for a difficult recovery this time around.
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Historically, recessions or periods of high unemployment
have been worse for black Americans.
If you look back 50 years,
you can see that this isn't the first time
black workers have faced these levels of joblessness.
- Double digit unemployment is actually nothing
sort of unfamiliar for African Americans.
So while everyone was kind of shocked
about how high unemployment spiked when the pandemic hit,
for African Americans, this is nothing new actually.
- [Reporter] When it came to the 2008 financial crisis,
all racial groups saw their wealth devastated.
But wealth for black households was much slower to recover.
A few factors contributed to this difference.
Among them was that black workers were more likely
to have temporary jobs during the recovery.
This occurred for a couple of reasons.
- So for instance, African Americans are overrepresented
in the criminal justice system
and we know that having a criminal background,
for instance, can be an impediment to employment.
We also know that African Americans
are more likely to be represented in temporary jobs
and service sector jobs, the kind of jobs
that can have sort of less stability, more turnover.
- [Reporter] Government data shows that, in 2018,
white workers had on average 17 months
more tenure at their jobs than black workers.
Also, the differences for black and white workers
in median household income and wages
have largely remained unchanged for decades.
- So some of the economists that I've been speaking to
as I've been reporting on black unemployment
point out that, although African Americans
were making gains in the labor market
as the expansion continued, that really sort of masked
some of the lingering inequality
that African Americans are dealing with in terms of wealth.
And wealth is what we typically think of
as providing a cushion to people
when there is an economic downturn.
- [Reporter] In 2016, the median black household
had less than $18,000 in net worth
compared with $171,000 for white households.
And in the fourth quarter of 2019, black home-ownership
was down four percentage points from 2007
while white home-ownership had almost regained
its pre-recession level.
But as the economic expansion continued,
there were signs that black workers
were finally beginning to benefit,
and in 2018, wages for black workers began to increase.
And by February 2020, the black unemployment rate
was near record lows.
Then the coronavirus pandemic hit.
By April, black unemployment had surged to 16.7%
compared to 14.7% overall.
For black workers who kept their jobs,
many were in industries that put them at risk.
These employees made up a higher percentage
of frontline workers in industries
like public transit and healthcare
than their share of workers overall.
- So economists and other experts
have really been pointing out
that it has been a one-two punch
for the African American community.
First, on the health front
because African Americans have suffered
a disproportionate number of deaths from COVID-19
and so some economists are kind of sounding the alarm
that the recovery could not be even
and could actually lag for African Americans.
- [Reporter] But economists say
the $2 trillion stimulus package
and Paycheck Protection Program
may be helpful in lowering black unemployment,
although maybe not to pre-pandemic levels anytime soon.
- There are some concerns though
that some of the aid may not be reaching
African American communities.
So for instance,
when the Paycheck Protection Program first rolled out,
a lot of African American small businesses
were reporting not being able to access it.
- [Reporter] And protests over the killing of George Floyd
might lead to more ideas and movement
on solving some long-standing disparities.
- A lot of the workers and business owners
that we talked to also said perhaps now is the time
to really have conversations about policies
that will address these long-standing inequalities
in wealth, in health, that African Americans
have experienced and that this coronavirus pandemic
really exposed once again.
- [Reporter] The economic disparities felt by black workers
are long-standing and interconnected.
And as the last recovery showed,
we take a long time to show signs of improvement.
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