African-American men and women have increased participation rates quickly since the depths of the pandemic.

The African-American employment to population ratio has been increasing through time, closing a 5 point gap to just 2 points before the pandemic, and squeezing it to less than 1 point most recently.

Context Since March, 1990 Peak Overall Rate

4 point decline before the pandemic. 1.5% pandemic hit. Almost 50% recovery.

3 point decline for prime age workforce, but 2 point improvement at the end of the prior economic recovery period. 2 point pandemic hit. More than 3/4ths recovered.

6 point slide before pandemic. 1.5 point pandemic hit. Perhaps 1/3rd recovered.

Up 3 points. Down 3 points. Up 3 points. Down 2 points. 80% recovered.

Context: History and Trends Through 2015+ Were Negative or Unclear for African-American LFP

Challenges Make Black LFP Rate Improvement Even Better News

Historically high concentrations of Black workers were hard hit by the pandemic.

Positive Factors Supporting the Increase

Size, growth and share all matter. Black workers may have quietly reached a “critical mass” where they face less obstacles and benefit from more positive network effects.

A history of higher than average labor force participation by those with some college education and a growing share of people in that category.

Black men have worked full-time schedules about the same as all men, while Black women have worked full-time more often than other women.

Context: The Labor Market

Real wages are up for African-Americans.

From 1975-97, African-American unemployment rates were 10% or higher. They briefly found the 7-8% level at the end of the Clinton presidency/expansion. They popped back up to 10% and recovered to about 8% before the “Great Recession”. They jumped up to 17% and then slowly declined to 10% by 2015. The extended recovery brought them down below 7% in 2018 and to a record low of less than 6%, briefly during 2018-19. The pandemic flirted with 17% rates once again. Instead of taking a decade to recover, unemployment rates have recovered in 2 years.

Black unemployment continues to be higher than other groups, but the gap is smaller than it once was.

References: Many Challenges Remain for African-Americans in the US Labor Market.

https://www.clevelandfed.org/en/newsroom-and-events/publications/economic-commentary/2021-economic-commentaries/ec-202123-whats-holding-back-employment-in-the-recovery-from-the-covid19-pandemic.aspx

Click to access blacks-in-the-labor-force.pdf

Click to access african-american-history-month.pdf

https://www.brookings.edu/research/why-are-employment-rates-so-low-among-black-men/

https://www.brookings.edu/blog/the-avenue/2022/06/17/three-questions-for-the-labor-markets-near-future/

https://www.brookings.edu/blog/the-avenue/2021/07/02/despite-junes-positive-jobs-numbers-black-workers-continue-to-face-high-unemployment/

Click to access 2021-12-Black-Mens-Job-Crisis-Austin.pdf

https://www.mckinsey.com/featured-insights/diversity-and-inclusion/race-in-the-workplace-the-black-experience-in-the-us-private-sector