Help Wanted: Creating Equal Opportunities for Minorities

2. Help Wanted: Creating Equal Opportunities for Minorities john a. powell Kirwan Institute for the Study of Race and Ethnicity

3. 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

4. What’s happening? • A deep and prolonged recession Source: U.S. Federal Reserve Bank of St. Louis Source: Center for Budget & Policy Priorities

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

6. An Uneven Recession: Geography Percent of Population in Poverty: 2006-2008 Source: American Community Survey

7. Unemployment by Metro Area December 2009 (national unemployment: 9.7%) Source: US Bureau of Labor Statistics *not seasonally adjusted

8. Unemployment by County December 2009 (national unemployment: 9.7%) Source: US Bureau of Labor Statistics *not seasonally adjusted

9. Intersections: Geography & Race Source: Economic Policy Institute (EPI)

10. Recovery, Jobs, and Equity National Unemployment Rates by Race Source: US Bureau of Labor Statistics

11. Jobs, Race, and Gender May Unemployment Rates by Race and Gender Source: US Bureau of Labor Statistics

12. Jobs, Race, and Age May Unemployment Rates by Race and Age Source: US Bureau of Labor Statistics

13. 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

14. Unemployment, Incarceration, and Inequality Percent of U.S. population in racial group under correctional supervision Source: US Bureau of Justice Statistics

15. 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

16. Long Term Impacts & Implications: Recession Generation? Sources: U.S. Census (ACS), Annie E. Casey Foundation

17. 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.

18. 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?

19. 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

20. State Relief: More Challenges to Come – What is the Response (State & Federal) Source: Center for Budget & Policy Priorities, Congressional Budget Office

21. 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

22. ARRA Contracts and Equity • 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

23. ARRA Contracts and Equity Federal ARRA Contract Procurement: 1st half vs. 2nd half Source: Federal Procurement Data System

24. The Need for Targeted Universalism Universal goals require a more targeted approach Source: Government Accountability Office (GAO)

25. 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.

26. 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)

27. 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

28. Help Wanted: Creating Equal Opportunities for Minorities john a. powell Kirwan Institute for the Study of Race and Ethnicity