Download - Help Wanted: Creating Equal Opportunities for Minorities

Help Wanted: Creating Equal Opportunities for

Minoritiesjohn a. powell

Kirwan Institute for the Study of Race and Ethnicity

Today’s Discussion - Overview

• What is happening?– An unusual recession/economic crisis– A deep and uneven recession/economic crisis

• Implications?– Long term

• The response– Our Critique– What needs to happen

What’s happening?• A deep and prolonged recession

Source: U.S. Federal Reserve Bank of St. Louis

Source: Center for Budget & Policy Priorities

Uneven Impacts Across various dimensions

• An uneven recession with many disparate impacts– Race, Age, Gender,

Geography, Educational Attainment, Occupation

• Intersections where the recession cuts deep– From recession to economic

crisis5.0

10.0

15.0

20.0

25.0

30.0

J-07 S-07 N-07 J-08 M-08 M-08 J-08 S-08 N-08 J-09 M-09 M-09 J-09 S-09 N-09

Black Latino White Total

Underemployment Rate by Race July 2007 to Nov 2009(Calculated by the Economic Policy Institute)

An Uneven Recession: Geography

Percent of Population in Poverty: 2006-2008

Poverty Rate By County

Percent in Poverty

Below 20%

Above 20%

!( Cities: Poverty Rate > 20%

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Georgia

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Washington

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South Dakota

Wisconsin

North Dakota

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Maine

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New York

Indiana

Kentucky

Michigan

Tennessee

Pennsylvania

North Carolina

Mississippi

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West Virginia

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Source: American Community Survey

Unemployment by Metro Area

Source: US Bureau of Labor Statistics *not seasonally adjusted

December 2009 (national unemployment: 9.7%)

Unemployment Rate

By Metro

Below National Rate

Above National Rate

Non-Metro Areas

Hawaii

Alaska

Texas

Utah

Montana

California

Arizona

Idaho

Nevada

Oregon

Kansas

Iowa

Colorado

Wyoming

New Mexico

Illinois

Missouri

Minnesota

Florida

Nebraska Ohio

Georgia

Oklahoma

Arkansas

Washington

Alabama

South Dakota

Wisconsin

North Dakota

Virginia

Maine

Louisiana

New York

Indiana

Kentucky

Michigan

Tennessee

Pennsylvania

North Carolina

Mississippi

South Carolina

West Virginia

Vermont

Maryland

New Jersey

N.H.

Mass.

Connecticut

Delaware

R.I.

DC

Unemployment by County

Unemployment Rate*

By County

Below National Rate

Above National Rate

Hawaii

Alaska

Texas

Utah

Montana

California

Arizona

Idaho

Nevada

Oregon

Kansas

Iowa

Colorado

Wyoming

New Mexico

Illinois

Missouri

Minnesota

Florida

Nebraska Ohio

Georgia

OklahomaArkansas

Washington

Alabama

South Dakota

Wisconsin

North Dakota

Virginia

Maine

Louisiana

New York

Indiana

Kentucky

Michigan

Tennessee

Pennsylvania

North Carolina

Mississippi

South Carolina

West Virginia

Vermont

Maryland

New Jersey

N.H.

Mass.

Connecticut

Delaware

R.I.

DC

December 2009 (national unemployment: 9.7%)

Source: US Bureau of Labor Statistics *not seasonally adjusted

Intersections: Geography & Race

Total3rd Quarter

2009

Projected 1st Quarter

2010Black

3rd Quarter 2009


2010White

3rd Quarter 2009


2010Latino

3rd Quarter 2009


2010

Michigan 15.2% 15.7%



Nevada 20.1% 19.0%

Nevada 13.0% 12.3%

South Carolina 20.4% 22.7%

Rhode Island 11.2% 11.7%

California 15.6% 16.9%

Rhode Island 12.8% 13.4%

Ohio 19.5% 22.0%

Oregon 11.0% 12.4%

Florida 13.1% 14.3%

California 12.1% 13.1%

Illinois 18.6% 20.2%

Kentucky 10.6% 11.2%

New Jersey 12.0% 12.6%

Oregon 11.8% 13.3%

Alabama 18.0% 18.8%

Nevada 10.6% 10.0%

Arizona 11.6% 13.1%

Source: Derived from data tables and analysis conducted by the Economic Policy Institute. Available on the EPI website at: www.epi.org

Top Five States with the Highest Unemployment Rates by Race (Ranked by 2009 3rd Quarter Unemployment)

Source: Economic Policy Institute (EPI)

9.4 9.39.0 8.7 8.8 8.8

9.0

15.7 15.616.2

16.515.8

16.5 16.5

13.112.7 12.9 12.6 12.4 12.6

12.5

10.1 10 109.7 9.7 9.7 9.9

8.0

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Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10

White Black Latino Total

Recovery, Jobs, and EquityNational Unemployment Rates by Race

Source: US Bureau of Labor Statistics

Jobs, Race, and GenderMay Unemployment Rates by Race and Gender

9.2

18.0

11.210.3

7.4

13.7

11.1

8.6

0.02.04.06.08.0

10.012.014.016.018.020.0


Men Women


Jobs, Race, and AgeMay Unemployment Rates by Race and Age


23.5

37.3

29.225.7

8.4

15.7

11.19.5

0.0

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15.0

20.0

25.0

30.0

35.0

40.0


Age 16-19 Age 20+

Unemployment, Incarceration, and Inequality

• In 1998, unemployment reached a 30-year low of 4.5%

• In 1998, the incarceration rate reached its highest point in U.S. history, with 1.78 million men in prisons and jails.

• What does this mean for the true unemployment in African American communities?

Source: Bruce Western; Incarceration, Unemployment, and Inequality

Unemployment, Incarceration, and Inequality

Percent of U.S. population in racial group under correctional supervision

Source: US Bureau of Justice Statistics

0.00%1.00%2.00%3.00%4.00%5.00%6.00%7.00%8.00%9.00%

10.00%

1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997

White Black Other

Larger Racial Impacts than Previous Recessions

Figures taken from Howard J. Wall’s, “The Effects of Recessions Across Demographic Groups.” Federal Reserve Bank of St. Louis, Sept. 2009

Long Term Impacts & Implications: Recession Generation?

BlackChild Poverty

2008 Native AmericanChild Poverty

2008 LatinoChild Poverty

2008 WhiteChild Poverty

2008

Mississippi 48% New Mexico 37% Kentucky 41% West Virginia 22%Arkansas 47% Arizona 35% Arkansas 39% Kentucky 20%Kentucky 44% California 24% Tennessee 39% Montana 18%Louisiana 43% Oklahoma 24% Alabama 36% Arkansas 17%Oklahoma 43% Alaska 23% Pennsylvania 36% Oklahoma 17%Wisconsin 42% Nevada 9% Rhode Island 36% Tennessee 16%Michigan 41% Data unavailable for other States Massachusetts 35% Mississippi 15%Ohio 41% Oregon 35% Indiana 14%Indiana 40% North Carolina 34% Maine 14%Alabama 38% Oklahoma 34% Missouri 14%Source: U.S. Census Bureau Data (American Community Survey), Analyzed by the Annie E. Casey Foundation Kids Count Database

Top Ten States for Child Poverty (By Race) in 2008

Sources: U.S. Census (ACS), Annie E. Casey Foundation

Long Term Impacts & Implications

• A “recession generation”, As New York Times columnist Bob Herbert stated: – “…there is little doubt that poverty and family homelessness are rising,

that the quality of public education in many communities is deteriorating and that legions of children are losing access to health care as their parents join the vastly expanding ranks of the unemployed. This is a toxic mix for children, a demoralizing convergence of factors that have long been known to impede the ability of young people to flourish.”

• Bob Herbert. “Children in Peril”, The New York Times. April 20th 2009.

The Response

• Our research/critique– American Recovery Reinvestment Act (stimulus)

• Has ARRA helped communities in greatest need?• Yes and No• Data challenges make “equity” assessment extremely

challenging• Many areas for improvement

– Additional jobs bills?

Has ARRA Helped High Need Communities?

• Positives – preventing “draconian” state budget cuts• Keeping families out of poverty

Note: Includes 2010 shortfalls

Source: Center for Budget & Policy Priorities

State Relief: More Challenges to Come – What is the

Response (State & Federal)

Source: Center for Budget & Policy Priorities, Congressional Budget Office

ARRA Contracts and Equity

Federal ARRA Contract Procurement as of May 7th

Source: Federal Procurement Data System, US Census 2002 Economic Survey of Business Owners

16.1%

9.3%

3.0% 4.1% 2.9%

17.0%

5.4% 4.1% 5.5% 3.7%

28.2%

5.2%6.8%

4.8%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Non-White Women Black Latino Asian

Contracts % Contract Value % % of all US Businesses


Firm Ownership # of Contracts % of Contracts $Value of Contracts % of Contract $ValueNon-White* 7,274 16.1% $4,393,897,361 17.0%Black 1,365 3.0% $1,050,405,579 4.1%Latino 1,874 4.1% $1,411,950,746 5.5%Women 4,234 9.3% $1,405,745,109 5.4%Asian 1327 2.9% $950,637,041 3.7%Totals 45,306 - $25,891,578,760 -

Source: Federal Procurement Data System

• Women-owned, Latino-owned, Black-owned, and Asian-owned businesses account for 28.2%, 6.8%, 5.2%, and 4.8% of all U.S. businesses respectively, according to the US Census Bureau, 2002 Economic Census Survey of Business Owners


Source: Federal Procurement Data System

Federal ARRA Contract Procurement: 1st half vs. 2nd half

11.1

5.5

2.0 1.93.1

15.7

7.8

3.73.1

5.0

23.9

15.4

4.5 4.8

6.0

16.7

12.5

2.3

4.76.0

0.0

5.0

10.0

15.0

20.0

25.0

Non-White Women Asian Black Latino

Feb-Sept 2009 % of Contracts

Feb-Sept 2009 % of Contract $Value

Sept-May 2010 % of Contracts

Sept- May2010 % of Contract $Value

The Need for Targeted Universalism

Health, 48.8

Education & Training, 31.6

Transportation, 9.3

Income Security, 4.9

Energy & Environment,

2.9

Community Development,

2.6

% of Total% of Total

Source: Government Accountability Office (GAO)

Universal goals require a more targeted approach

Universal Approach of ARRA

• Administration has taken a “race-lite” approach to public investment.

• Examples of targeted investment (like N.S.P.) represent a relatively small portion of an otherwise universal package.

• Budget stabilization funds keep communities of color afloat, but don’t recover or develop.

• Rising tides…don’t lift all boats equally.

A Broader “Equity” Recovery Platform

• Assuring civil rights compliance, tracking and data on recovery and recession

• More targeted investment (geography, race, areas of need)

• More investment in broader community infrastructure (not just roads)

• Connecting marginalized workers to the growth sectors in the “new” economy

– E.g. Linking green economy initiatives to worker training

• New $6 billion Homestar Program• Local Jobs For America Act (HR 4812)

The Kirwan Institute’s Recent Work

• The most recently proposed jobs bill– Targeted economic investments and job relief programs with

universal goals• Targeting by geography/race/need• More proactive (and mandatory) minority business procurement

activities

• This also needs to be tied to more long term solutions– Education/training, preparing for the new economy– Addressing state budget challenges (at the state level and

the federal level)– Addressing structural issues

Help Wanted: Creating Equal Opportunities for

Minoritiesjohn a. powell

Kirwan Institute for the Study of Race and Ethnicity

Download - Help Wanted: Creating Equal Opportunities for Minorities

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