One Discrepancy Amidst Black and White Workers Has Been Eliminated. Will The Advancement Endure?

Black employees have achieved remarkable strides in bridging a longstanding racial disparity, yet the endurance of this advancement in the midst of the current robust labor market remains uncertain.

During this season, an unprecedented occurrence unfolded within the employment sector: Black individuals, for the first time in history, exhibited an equal likelihood of securing employment compared to their White counterparts, relative to the overall population. This development finally closed a persisting gap that can be traced back to at least 1972 when the Bureau of Labor Statistics commenced recording the employment-population ratio for Black workers. As of May, 59.6% of Black individuals were gainfully employed, only marginally lower than the 60.2% of White individuals. Just a month prior, the situation was reversed, with Black employment slightly surpassing that of Whites.

Decades-long Racial Disparity in Employment Between Black and White Workers Finally Narrows

After trailing behind since at least 1972, the employment-population ratio for Black workers has now reached a state of near parity with their White counterparts. Black workers have particularly thrived in an employment landscape characterized by a scarcity of qualified personnel, leading employers across various sectors to exhibit persistent eagerness in recruitment efforts.

"In instances where employers face a substantial demand for labor, the inclination towards racial discrimination diminishes," asserted Aaron Sojourner, a distinguished scholar at the Upjohn Institute for Employment Research. "They are more inclined to extend opportunities to individuals who may have been previously overlooked."

By certain metrics, Black workers still lag behind their White counterparts. The unemployment rate, which gauges the proportion of employed individuals compared to those actively seeking employment, continues to exhibit a significant discrepancy, with White workers boasting an unemployment rate of 3.3% as of May, while Black workers stand at 5.6%.

The narrowing of this gap may not solely be attributed to a reduction in discriminatory hiring practices. Sojourner pointed out that the White employment-population ratio has yet to fully rebound from the impact of the pandemic, likely due to a higher proportion of older workers, who are predominantly White, opting for early retirement in recent years.

Nevertheless, there are indications that this trend extends beyond a temporary anomaly within the pandemic-stricken economy. The gap in the employment-population ratio has been steadily closing since the conclusion of the Great Recession, implying the presence of a more enduring phenomenon.

The ultimate trial will emerge when employers transition from hiring to laying off workers in an economy that shows signs of decline. Throughout history, Black workers have exhibited a higher likelihood of being peripherally attached to the labor force, characterized by frequent transitions in and out of employment, and often being the first to face layoffs during economic downturns.

"It is in such circumstances that the enduring nature of this change will be tested," stated Sojourner. "It is plausible that the association with race has weakened in contemporary times, and if we witness an economic softening, the burden may be distributed more equitably. Only time will reveal the truth. While I wouldn't place a wager on it, the possibility exists."