Houston Chronicle

The racial justice movement hasn’t translated to economic equality for Blackworke­rs yet

- By Rebecca Carballo STAFF WRITER

Edwin Smith had just started a new job at a software company when, at an office happy hour, his boss told a joke in which the punchline was a play on words using the n-word.

“He tried to laugh it off and was like, ‘Don’t you go calling me racist now,’” recalled Smith, 41, one of the few Blacks in the company’s Houston-area location. “That was when I

“People just assume these inferiorit­y things; they never look at the data.” William Spriggs, chief economist at the AFL-CIO

began to think something didn’t feel right there.”

Smith moved on, earning promotion from inside sales representa­tive to account executive. When the coronaviru­s pandemic hit, however, Smith and the only other account executive of color were among the first in the office to get laid off. About a month later, two more employees were laid off.

“This was no longer a coincidenc­e,” Smith said. “They were all Black.”

The coronaviru­s pandemic is again exposing the inequaliti­es Black workers face, who are experienci­ng unemployme­nt at a far higher rate than whites. The unemployme­nt gap between Black and white workers has nearly doubled since the virus forced shutdowns in early spring, even as corporatio­ns renewed pledges to hire more people of color and promote more Black executives to top positions following the killings of George Floyd and Breonna Taylor by police.

Before the pandemic hit, the Black unemployme­nt rate was less than 3 percentage points higher that white unemployme­nt rate; in September the gap grew to more than 5 percentage points, according to the Labor Department. Black unemployme­nt was 12.1 percent in September, compared to 7 percent for whites and 7.9 percent for all workers.

The gap also expanded as coronaviru­s shutdowns were lifted and the economy began to recover. In May, when Black unemployme­nt was 16.8 percent and white unemployme­nt 12 percent, the difference was 4.8 percentage points.

William Spriggs, chief economist at the AFL-CIO, the national coalition of labor unions, said the data shows that Blacks not only lost jobs more quickly, but also are getting rehired more slowly. While economists explain the unemployme­nt gap in part by the higher concentrat­ion of Black workers in industries, such as restaurant­s and retail, that have been hardest hit by the pandemic, Spriggs pointed to another factor: discrimina­tion.

“People forget what Black means. It’s a category created to make a set of people who we could legally discrimina­te against,” Spriggs said. “It’s one of the more disturbing things about the American economy.”

Unemployme­nt gap

Systemic racism and discrimina­tion — pushed to the forefront by Floyd’s death at the hands of Minneapoli­s police — is ingrained in U.S. economic history. In the century that followed the end of slavery, law and custom kept Blacks from wide swaths of the economy and labor market, blocking paths to prosperity that other groups have taken.

In the half-century that followed the civil rights movement, the economy opened to Blacks, but barriers to housing, education, employment and advancemen­t remained. Spriggs noted that the gap in unemployme­nt rates between Blacks and whites is often explained as a skills gap, that is, Blacks lack the specific skills employers are seeking.

That, however, doesn’t explain why the unemployme­nt among whites without a high school diploma is consistent­ly lower than Black unemployme­nt. In September, unemployme­nt for white workers without a high school diploma was 9 percent — 3 percentage points lower than the unemployme­nt rate for all Blacks.

“When you ask most people, ‘Why is the Black unemployme­nt rate higher?’ Knee jerk reaction, they’re going to tell you skills. No one ever pushes them when they say that,” Spriggs said. “People just assume these inferiorit­y things; they never look at the data.”

James Douglas, president of the NAACP Houston Branch, has no doubt that discrimina­tion is behind racial disparitie­s in employment. As a law student at Stanford University in California in the 1970s, he interviewe­d with a Houston law firm that was recruiting on campus.

He thought he did well in the interview, but didn’t get an offer. Later, the professor who recommende­d Douglas to the firm told him that the older partners weren’t ready to integrate.

“That was a long time ago,” Douglas said, “but little has changed.”

What also hasn’t changed, Douglas said, are promises by companies to diversify their workforce and executive suites — promises that have yet to be fully realized.

Talking the talk

The National Football League, for example, released statements after Floyd’s death, saying there was “much more to do” to combat racism as a country. Critics, however, pointed out that former NFL quarterbac­k Colin Kaepernick, who knelt during the national anthem to protest racism, has not played since 2017, even though he is regarded as better than many other quarterbac­ks on NFL rosters.

Wells Fargo also released a statement decrying racism in America, promising to “meaningful­ly contribute to the change” by doubling Black leadership at the company over the next five years. Shortly after, its CEO made a comment blaming the lack of diversity at his company on a “very limited pool of Black talent.” He later apologized.

If companies want to diversify their workforces, they not only need to make commitment­s, but also follow through, said Anna Gifty Opoku-Agyeman, cofounder of The Sadie Collective, a nonprofit that supports Black women pursuing careers in economics, finance, and policy. Corporatio­ns also need to look ahead, not only identifyin­g and recruiting workers for today, but also for jobs opening far into the future.

“You’re putting out a statement decades late,” Gifty Opoku-Agyema said. “So let's move.”

Gifty Opoku-Agyeman, 24, founded the Sadie Collective more than two years ago after doing an economic research assistants­hip at the University of Chicago and finding out that few Black women found careers in economics. The group provides both networking opportunit­ies for Black and recruiting opportunit­ies for companies.

“Businesses should look to work with grassroots initiative­s addressing pipeline and pathway problems,” she said, “and put some money and power behind it.”

 ?? Godofredo A. Vásquez / Staff photograph­er ?? Edwin Smith, 41, was one of the few Black men working at a software company’s Houston-area office. But when COVID-19 hit, he was among the first laid off.
Godofredo A. Vásquez / Staff photograph­er Edwin Smith, 41, was one of the few Black men working at a software company’s Houston-area office. But when COVID-19 hit, he was among the first laid off.
 ?? Godofredo A. Vásquez / Staff photograph­er ?? Edwin Smith recalls a happy hour where his boss told a joke in which the punchline was a play on words using the N-word. “That was when I began to think something didn’t feel right there.”
Godofredo A. Vásquez / Staff photograph­er Edwin Smith recalls a happy hour where his boss told a joke in which the punchline was a play on words using the N-word. “That was when I began to think something didn’t feel right there.”

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