Black Americans Account for 90% of Newly Unemployed Adults
According to a recent report from the Bureau of Labor Statistics, Black Americans account for nearly 90% of the newly unemployed adults since April. This reverses a previous trend of improvement over the past two years. While it is too early to draw definitive conclusions, some labor market analysts suggest that widespread layoffs in the technology and service industries have disproportionately affected Black workers.
There is speculation that the “George Floyd effect” has played a role in these job losses. Many corporations made affirmative action hires in response to social justice protests, but these commitments have dwindled amid fears of an economic downturn. Eugene Dilan, a business consultant specializing in equity and diversity, explains that when the economy became unstable, these individuals were seen as expendable, resulting in them being the first to lose their jobs.
The tech industry has seen significant layoffs, with companies like Apple, Google, and Meta (formerly Facebook) terminating tens of thousands of workers. This has contributed to a higher turnover rate among employees responsible for equity, inclusion, and diversity. Microsoft recently announced further job cuts in addition to the ones they had already announced earlier this year.
The report also highlights the persistent racial disparities in unemployment rates. In June, the Black unemployment rate stood at 6%, twice that of White Americans at 3.1%. Historically, Black unemployment rates have consistently been double those of White Americans. Hispanic unemployment rose to 4.6% in the same period, while Asian Americans experienced a rate of 3.2%.
The Gallup and Amazon study reveals underrepresentation of Black and Hispanic adults in top-rated careers. Systemic challenges such as racism, limited job advancement prospects, unsafe neighborhoods, and limited access to quality education continue to hinder opportunities for these communities.
The combination of these factors has led to Black Americans being overrepresented in low-wage jobs. Additionally, competition for these jobs has increased with the rise in illegal immigration, as Black workers find themselves competing with undocumented workers in a cooling labor market.
https://www.bls.gov/news.release/pdf/empsit.pdf
https://www.gallup.com/file/analytics/506699/Gallup-Amazon-Careers-of-the-Future-Report.pdf
I think a month’s data does not a global trend portend.
Gee, Blacks being fired first —- who figured? “George Floyd effect” has a role, yeah, sure, why not. Many corporations made affirmative action hires in response and now they fire because they are Black says Daniel. Most corporations do not discriminate when firing; these lawsuits are expensive and then “Floyd” does come into play re: PR. Apple, Google, and Meta terminating tens of thousands of workers. Total high tech firings including these folks were 80K in January, around 35K Feb/Mar, under 20K until June where ONLY 10K in layoff. What were you saying? The whole 10K is black? It’s getting worse when it’s getting better? What?
“This has contributed to a higher turnover rate among employees responsible for equity, inclusion, and diversity.”
Well, if you say it, must be true. But I would love to see any PROOF.
Black unemployment rates have consistently been double those of White Americans, an amazing fact already known. Wanna bet they get paid less, fired first, and take lower jobs than white for commensurate skills? The Gallup and Amazon study reveals what everyone already knows and Daniel copy/pasted it one more time using a month’s data to toss ideas around without substantiation, a trend, or what…..
Folks: wherever you are in the economy, you have never been there before.
We just went through Trumpenomics, a pandemic, and now Bidenomics. If you don’t think the pandemic messed with the economy…. Remember shortages, work at home, supply line crashes, my pool chlorine pellet factory burned — massive inflation and shortages for over a year, car chips, freakin toilet paper… Trump tariffs, tax cuts, spending us into the shitter, everyone hoarding the free money, then Biden doubles down on the free money…. Too many people, not enough people, need face-to-face people in a quarantine. IF you don’t think this stuff won’t mess with an economy, you’re crazy. We are still feeling the effect and folks hired like crazy, sometimes to backfill sickness, sometimes to prep for the re-opening, sometimes to fulfill new covid business models like delivery, call centers, lots of new things ramping up, all probably hiring heavy. And then it was over and time to prune.
The Black “angle” has not changed for a decade. The “George Floyd” effect is that now you see it.
There will be more twists and turns before we are thought and the most important strangeness in the whole affair is that we have not hit a recession yet — that’s against the rules…. But when we do, rest assured, the black women go first, then the men, and finally they come for the crackers…. Just kidding, or am I?
Tom, we need a SC/SC employment check cleanup on aisle ten. What are you hearing down there?