diversity jobs index and report july 2014

Download Diversity Jobs Index and Report July 2014

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Each month, Professional Diversity Network publishes the Diversity Jobs Index and Report to provide a monthly summary of the current trends within the marketplace for diverse Americans like yourself, as well as an index number that represents these overall conditions for the previous month. This particular release provides an overview of the demand for diverse talent in June of 2014.

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  • 1.www.prodivnet.com 1www.prodivnet.com July 2014 Diversity Jobs Index and Report

2. www.prodivnet.com 2 July 2014 Diversity Jobs Index and Report African Americans: Young, Educated And Unemployed? The Quest for Visibility and Access Continues among African American Job Seekers Dreams Deferred In the classic American movie, The Color Purple, which explores the life and trials of a young African American woman growing up in the 1900s, the main character Celie Johnson proclaimed, Im poor [and] Blackbut dear God, Im here! While there are other, possibly more famous, lines from the movie, the message is apropos to the employment situation facing many young, educated African Americans today. Why? The quote illustrates the need among Black professionals to be recognized and given equitable opportunities for employmentin spite of what potential employers may presume based on color. To her credit, Celie was the best couturier in the county. But this valuable skill was unknown to others until she left the farm to open her own, highly profitable haberdashery. When it comes to having a fair shot at the American Dream, education has long been hailed the great equalizer. If you keep your nose to the grindstone, be a good citizen and get a college education, opportunity awaits! many are told. Unfortunately, Last months Diversity Jobs Report (DJR) explored the absence of women and minorities employed in the information technology (IT) sector. Sparked by a recent call to arms in an open letter from Civil Rights leaders, news headlines shed light on Silicon Valleys diversity problem. Since then, several tech giants (including Google, Facebook, Yahoo, LinkedIn, etc.) have released their EEO-1 reports and issued statements regarding current or impending diversity initiatives. While the public declaration that diversity matters is a worthy first step, the reports simply reaffirmed what many suspected all along: employment for African Americans, Hispanics and Women in IT (in both technical and non-technical support roles) is indeed lacking. Although over 271,000 jobs were available this month, African Americans experienced a decrease in employment in every region and industry, while all other diverse groups (women, Hispanic Americans, Asian Americans, veterans, people with disabilities and LGBT) saw an increase in employment. Included in these numbers are young, Black candidates (ages 22- 27) with college degrees. The July DJR explores this status quo with specific regard to the employment situation for African Americans beyond the IT sector. In particular, the report outlines data to help demystify the perceived challenge of identifying and recruiting top Black candidates. PUBLISHERS CORNER Kevin M. Williams Chief Marketing Officer Professional Diversity Network 3. www.prodivnet.com 3 for young African Americans, the promise of acquiring gainful employment upon graduation has increasingly become a dream deferred. According to the most recent data from the U.S. Department of Labor, the monthly unemployment rate for African Americans is nearly double that of whites, regardless of education level. A look under the hood reveals this employment gap continues to widen, evidence that earning a college degree no longer guarantees access to good paying jobs. Even in high-growth sectors, such as technology and healthcare, African Americans face the problem of visibility and accesskey factors in gaining consideration for a job. The economic gains that come from earning a bachelors degree are well documented. U.S. Census Bureau data shows that college graduates earn almost twice as much as high-school grads over the course of their careers. In 2013 (the most recent full year of data available), 12.4% of Black college graduates between the ages of 22 and 27 were unemployed. And while the ideal situation is to employ every American, compared to all college graduates in the same age range (5.6%), the rate for Blacks is more than double. In recent years, research has also focused significant attention on the benefits of STEM (science, technology, engineering and mathematics) majors and their perceived advantages in the labor market. African American college graduates in STEM majors have fared somewhat better, but still suffer from high unemployment and underemployment rates. Inclusion from the Top Down Though well intentioned, many companies hold to the myth of a pipeline problem to explain why they recruit and hire so few African Americans. Rather than a limited quantity of educated candidates, data suggests a culture lacking inclusion and the misguided belief that there are just not enough qualified African Americans in certain industries. In this instance, leaders have a real opportunity to reframe the narrative around diversity by implementing a policy of inclusion. Historically, African American employment has indexed high in the government sector, but those numbers have faltered as well. In what many call a sweeping move, President Barack Obama signed two executive orders (EO) regarding equality in the workplace. Among other things, the first requires a government-wide plan to recruit, hire and train diverse federal employees. The second EO, which many assumed was an existing policy, forbids companies that do business with the federal government from discriminating against employees on the basis of sexual orientation or gender identity. As demonstrated by the President, ensuring a culture of diversity and inclusion must begin from the top down. Why Inclusion? Why Now? Every organization is different and possesses a unique internal culture. However, with the exception of non-profits, the mandate of all CEOs is consistentto increase revenue, improve operational efficiencies, and increase time-to- market for their products and services. While affirmative action continues to hold a stigma, increasingly organizations understand how diversity can positively impact the bottom line. Beyond the typical case for why inclusion is the right thing to do, consider the fact that a diverse set of employees can offer a competitive advantage. As outlined above, leaders within an organization must implement a strategic business policy that empowers hiring managers. Second (and undoubtedly not an easy task), employers must understand that recruiting qualified, diverse professionals requires communicating in a manner that is respectful and motivating. Collectively, this ...the monthly unemployment rate for African Americans is nearly double that of whites, regardless of educational level. 4. www.prodivnet.com 4 approach can help companies accelerate their workforce diversity goals and ultimately win in the marketplace. Taking a queue from Celie, The Color Purples heroine, forward leaning CEOs, government agencies and captains of industry can send a clear message: young, educated Black professionals not only exist, but also deserve equitable opportunities for employment. By taking advantage of this untapped pool of diverse talent, businesses and organizations can undoubtedly thrive. June 2014 Diversity Jobs Index The Diversity Jobs Index for the June 2014 report is 51.82, indicating a 3.46% decrease in demand for diverse talent as compared to the previous month. 5. www.prodivnet.com 5 Employment Data by Segment Diversity Jobs Report 0 20 40 60 80 100 120 140 160 All African American Hispanic Asian Disabled Women Veteran Millons Unemployed Full@me ParBme TotalEmployedLaborForce 6. www.prodivnet.com 6 Unemployment Rate by Segment Employment Demographics by Education 0 20 40 60 80 100 120 140 160 All African American Hispanic Asian Disabled Women Veteran Millions NoCollegeDegree BachelorsDegreeorHigher 0% 2% 4% 6% 8% 10% 12% 14% All African American Hispanic Asian Disabled Women Veteran UnemploymentRate 7. www.prodivnet.com 7 Employment Demographics by Industry Employment Demographics by Region 0 2 4 6 8 10 12 14 16 NewEngland MidAtlan5c Midwest NorthCentral SouthAtlan5c SouthCentral Southwest West Pacic Millons African American Hispanic Asian Disabled Women Veteran 0 5 10 15 20 25 30 AgricultureForestryFishingandHun9ng M ining Construc9on M anufacturing W holesaleandRetailTrade Transporta9onandU9li9es Inform a9onFinancialAc9vi9es ProfessionalandBusinessServices Educa9onalandHealthServices LeisureandHospitality OtherServices PublicAdm inistra9on Millons African American Hispanic Asian Disabled Women Veteran 8. www.prodivnet.com 8 What the Numbers Mean Diversity Jobs Index: From May to June there was a slight increase in full time employment for diverse candidates. Specifically, overall demand for all diverse talent increased with the exception of African Americans, which declined in employment. Diversity Jobs Report: An analysis of Junes DJR data indicates the level of unemployment by workforce segment, clearly demonstrating disparities compared to the national average, which is 6.12%. For example, the unemployment rate for all diverse candidates in the nation is slightly higher at 7.04%. However, the unemployment rate for African Americans is nearly double the national average at 11.38%. Note: African Americans make up 22.38% of the total unemployment population. We see a similar condition in the Hispanic segment and contrasting data in other segments as illustrated below: Diverse Workforce Labor Market Statistics 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% African American Hispanic Asian Disabled Women Veterans %OfOverallWorkforce UnemploymentRate %ofAllUnemployed 9. www.prodivnet.com 9 Key Highlights African Americans comprise 11.98% of the total workforce. African Americans are still strongly represented in the Public Administration sector and make up 16.8% of the overall labor force in this sector during May. However, this segment continues to be woefully underrepresented in the Financial Activities sector and make up only 8.25% of the overall labor force in this sector during May. Hispanics comprise 16.2% of the total workforc