Report Exposes Racial Inequities in U.S. Workforce, Calls for Reforms and Data Transparency

A report from the Joint Center for Political and Economic Studies has cast a spotlight on how the U.S. public workforce system adds to racial inequities in the workforce, urging reforms to ensure a fair future for all workers.  

The report finds that Black Americans often face systemic barriers that lead them into low-wage jobs with minimal avenues for career growth. 

The troubling findings call for the use of “sector partnerships,” which are collaborations between employers, educational institutions, community-based organizations, and unions. These partnerships help upskill workers and connect them with potential employers, aiming to raise pay and improve job retention for Black workers. 

“According to one study of the wage-growth trajectory of participants in career pathway programs by race, gender, and occupation, Black workers could expect to earn $2.46 to $15.50 less per hour than their white peers 10 years after entering the transportation, production, healthcare, and agriculture fields,” according to the report. “Nonetheless, sector partnerships are a promising workforce development model. With the proper focus on equity, sector partnerships can catalyze economic mobility and job creation for Black workers.” 

A stark issue highlighted in the report is the lack of federal data on the employment outcomes for Black Americans in these workforce programs. Currently, the Workforce Innovation and Opportunity Act (WIOA), signed into law in July 2014, mandates local and state workforce boards to gather labor market data to create sector initiatives for in-demand jobs. However, it does not require the collection and reporting of racial demographic information. Without such data, it becomes challenging for policy makers to identify and tackle discriminatory practices effectively. 

The report stresses the need for “race accountability data metrics” in workforce development policies in order to better track and remedy the disparities affecting Black workers. 

The U.S. House of Representatives passed the bipartisan “Stronger Workforce for America Act” in April, designed to broaden workers’ skill development. Reuters reports that Democratic Representative Bobby Scott, who introduced the bill with Republican Rep. Virginia Foxx, acknowledged that discrimination has restricted opportunities to obtain higher-paying jobs. 

The Joint Center’s study indicates that discriminatory hiring practices and underfunded federal and state agencies, such as the U.S. Equal Employment Opportunity Commission (EEOC), undermine progress. Despite these challenges, the EEOC noted its efforts have resulted in significant financial recoveries for victims of discrimination. 

With Black Americans comprising 13% of the workforce, according to Bureau of Labor Statistics data, the call for reforms is urgent. The push for data transparency and mandatory reporting is crucial to creating equitable employment opportunities and making a more inclusive future in the U.S. labor market.