Despite recent improvements in Black unemployment rates, a new report reveals Black Americans continue to face significant disparities in the labor market, and Virginians are no exception.
The report estimates in Virginia alone, Black men need about 16,000 more jobs to reach parity with white men in the workforce, and it shows the racial employment gap remains a costly burden for Black workers.
Algernon Austin, director of race and economic Justice at the Center for Economic and Policy Research, said while Black unemployment fell to 5.5% in 2022, the lowest rate in over 50 years, the positive statistic obscures deeper issues.
“Black America still needs about 1.4 million more people working to have the same employment rate as white America,” Austin pointed out. “We still have a significant need for jobs.”
The research is from the Center for Economic and Policy Research and the Joint Center for Political and Economic Studies. For Black Americans who are employed, Austin noted the data show significant wage disparities and the employment gap is costing them about $60 billion a year.
While policymakers discuss solutions like subsidized employment programs, Austin emphasized targeted actions, like raising the minimum wage, are crucial to addressing systemic inequities.
“This is America’s historic problem,” Austin stressed. “I mean, this problem begins in the enslavement of the Black population, and then Jim Crow – and then, the continuing discrimination in the labor market.”
In the most recent figures for August, the U.S. labor market saw modest job growth but Black unemployment remained at just over 6%, significantly higher than the 3.8% rate for white workers.
The report highlighted despite lower Black unemployment levels, structural barriers from hiring discrimination to limited access to high-paying jobs continue to impede economic progress for Black Americans.
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Almost 1,000 University of Michigan Health-Sparrow nurses and other health-care professionals, as well as union supporters, rallied outside the hospital in Lansing this week. The picket comes amid growing concerns over expired contracts.
They’ve been negotiating for better wages and benefits as well as safe staffing levels. As University of Michigan Health invests nearly $130 million in new buildings, the picketers say a strong contract is needed to recruit and keep skilled staff.
Emergency-room nurse Jen Ackley said one of the biggest issues is prioritizing which patients to see first when many need attention.
“And then, you’re constantly revisiting those choices in your mind – not only during that shift, but afterwards,” she said. “Did I make the right choices? Did I prioritize my care in the right way? Did any decision that I made, or didn’t make, have a negative outcome for a patient?”
University of Michigan Health has not yet publicly responded to the picketers. However, it confirmed the construction of a $32 million health-care facility near Grand Ledge, in addition to plans for a $97 million psychiatric hospital in Lansing.
Ackley said inadequate staffing and what the union sees as unfair wages have led to what she called “moral injury” – a daily erosion of ethics and integrity at work. She said it’s become an unsustainable situation for frontline health-care workers.
“And the hospitals like to say that there’s a nursing shortage – that, ‘We’ve tried the best we can but we just cannot staff’ – and that’s not the case,” she said. “There’s no shortage of nurses. There’s a shortage of nurses that can tolerate this type of moral injury.”
The picket was not a work stoppage. The nurses and other staff members participated during their off-work hours. The union represents about 2,000 nurses and health-care professionals working at the hospital.
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Changes in leadership at the federal level are likely to have some effect on the labor movement.
In Minnesota, election results have spurred thoughts about topics like the future of OSHA’s worker safety standards. It may be too early to get a firm read on what will happen under a second Trump administration.
Meanwhile, at the state level, Democrats still control the Minnesota Senate but the House is locked in a tie between both parties. Democrats bolstered labor laws in recent sessions.
Mike Wilde, executive director of the Fair Contracting Foundation of Minnesota, which he said has a nonpolitical stance, said moving forward, no matter the policy, enforcement is key.
“We can have all the laws we want on the books but unless they’re enforced and meaningful, they don’t do anybody any good,” Wilde contended.
While campaigning, President-Elect Donald Trump made attempts to appeal to unions but his first term saw a big cut in the number of federal safety inspectors for job sites, and analysts expect his staff to curtail a proposed heat safety rule.
Wilde acknowledged OSHA is not the only tool available but noted it plays a big role in protecting rooftop construction teams. He argued more resources and flexible enforcement options are needed.
Wilde added Minnesota has a strong approach to helping carry out apprenticeship programs but pointed out it is not the case in all states.
“Some employers utilize substandard apprenticeship programs that aren’t very well regulated,” Wilde asserted.
He suggested a robust, coordinated approach could help more people find stable careers with strong pay, benefiting the economy. Another aspect labor leaders will monitor is appointments to the National Labor Relations Board and how they affect rules directly tied to workers’ rights.
Disclosure: The Fair Contracting Foundation of Minnesota contributes to our fund for reporting on Livable Wages/Working Families, and Social Justice. If you would like to help support news in the public interest, click here.
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Roughly 30% of Minnesota’s private-sector employees do not have a work-sponsored retirement plan but some business owners and consumer advocates hope a soon-to-launch state program will improve access.
In mid-to-late 2025, Minnesota is expected to roll out its Secure Choice Retirement Program. For employers who are not in a position to provide a savings plan for their staff, they will be required to ensure a portion of a worker’s paycheck is transferred to a state-sponsored retirement account.
Erik Forsberg owns a handful of restaurants in the Twin Cities area and said for hospitality workers, the benefit usually is not in their orbit when they are first hired.
“When you start a typical corporate position, you sit down with HR and they explain your benefits package,” Forsberg noted. “Most of our employees just don’t have access to that.”
Economic data show wage growth has been strong for service workers, and Forsberg emphasized tacking on a retirement plan could convince more of them to stay longer. He added it helps small-business owners reduce hiring costs. Employers do not have to contribute to the fund and Forsberg hopes the program maintains a mission of not overburdening businesses as they prepare for other mandates, such as Minnesota’s Paid Leave Law.
Next Wednesday, AARP Minnesota will host a webinar to provide more details to business owners about the new retirement program.
Mary Jo George, associate state director of advocacy for the organization, said those involved in shaping the effort want to keep this simple for employers.
“One of the things we keep hearing is that small employers, all employers, they really do want to offer a reinterment plan,” George pointed out. “But it’s been very costly, it’s been an administrative burden.”
In addition to not having a match requirement, legislative researchers said there are no fees for employers, except for any incidental costs in modifying payroll systems.
Similar programs have taken shape in nearly 20 states and Oregon officials said early success resulted in strong public backing via polling data. George stressed in Minnesota, they hope to give more people the chance to retire with dignity if they start saving much earlier in their working career.
“We know that when you can do it automatically out of your paycheck, workers are 20 times more like to save,” George reported.
Disclosure: AARP Minnesota contributes to our fund for reporting on Budget Policy and Priorities, Consumer Issues, Health Issues, and Senior Issues. If you would like to help support news in the public interest, click here.
