Wage disparities among the demographics within the American Labor market have always been a source of concern threatening the economic growth of the various groups. While income inequality is a common denominator among each group, for many Blacks, wage disparities, though have improved from the 70s and 80s, have been particularly sluggish in their growth.

Providing a basis for this sluggish growth the Economic Policy Institute in its September 20, 2016 publication, argues that “during the early 1980s, rising unemployment, declining unionization, and policies such as the failure to raise the minimum wage and lax enforcement of anti-discrimination laws contributed to the growing black-white wage gap. During the late 1990s, the gap shrank due in part to tighter labor markets, which made discrimination more costly, and increases in the minimum wage”. (Source: Economic Policy Institute)

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Even with a rise in Black people having attained advanced degrees and qualifications, several challenges of race and economics still prevail that raise concern over the racial wealth disparity at the Black-White group levels. As pointed out by Vanessa Williamson in a December 9, 2020 research publication on closing the racial wealth gap, she writes that “The median white household has a net worth 10 times that of the median Black household”.

She further states that “according to the 2016 Survey of Consumer Finances, the median white household has a net worth of $171,000, 10 times the net worth of the median Black household, $17,100. In other words, Black households are overrepresented among the poor and working class, and underrepresented among the upper-middle class and the wealthy”. (Source: The Brookings Institution)

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What then are the reasons for these disparities? The Center for Economic and Policy Research offers 3 likely possibilities that point to “the number of jobs, the quality of jobs, and the types of jobs available to Black people”.

In its employment ratings for the United States in 2023 for race and ethnicity by Statista (the online platform specializing in data gathering), Black/African-Americans have a 59.6% employment rate just one step above the Puerto Ricans who are the least with a 57.3% rate.

In the same vein, earning disparities according to the United States Department of Labor national earning disparities relative to white workers’ report show a 63% – 11% White-Black ratio share of workers with an average weekly earnings of $1,046.52 for Whites as against $791.02 for Blacks.

When stretched further in comparison with other demographics the data shows that Black workers are among the lowest earning demography in the United States just after Native American/American Indian and before Hispanic/Latino. (Source: United States Department of Labor)

Closing the wage gap requires concerted efforts beyond the usual rhetoric. While anti-discrimination and hiring policies are already in effect and in many cases enforced, there is a need for higher minimum wages at the Federal level which would establish a base across the nation by which states can match or exceed payment of excess.

Increasing access to credit for mortgages, higher education, and support funding for Black businesses can also help improve the economic status as well as the wealth distribution within the Black demography.

Lastly, targeted policies and programs especially in Black populated communities with high rates of unemployment can go a long way to create opportunities for the emergence of small businesses, create employment, and improve the economy of such communities.

Okechukwu Nzeribe works with the Onitsha Chamber of Commerce, in Anambra State, Nigeria, and loves unveiling the richness of African cultures. okechukwu.oniccima@gmail.com