Name of Report: Race and Recession: A Special Report Examining How Changes in the Economy Affect People of Color
Organizational affiliation: Applied Research Center, National Campaign for Jobs and Income Support
Author: William Ritz
Date: Summer 2002
Pages: 28 pages
Content Summary
With anecdotal and compiled regional and national study data, this report illustrates how the recent recession has disproportionately affected people of color, nationwide. The report looks at unemployment rates and access to unemployment benefits, the job market, welfare reform and access to educational assistance programs, and offers suggestions for changing disparate conditions.
Major Findings
Fundamentally, people of color are hardest hit by the recession. People of color are most vulnerable to lay-offs and discrimination when attempting to receive state aid and due to their concentration in low paying jobs people of color are least likely to have savings. After September 11 th increases in unemployment rates for Latinos and Black were more than two times that of White employees. Also due to recent legislation 30,000 immigrants nationwide will lose airport jobs because of their immigrant status, also non-U.S. citizens are least likely to receive state and federal assistance while applying for citizenship. Blacks and Latinos are more likely not to receive unemployment insurance. National and regional studies have shown that caseworkers actively refuse to refer people of color to education and training programs. Employers are also less likely to hire welfare recipients of color than their White counterparts. Furthermore, states with higher concentrations are more likely to impose stricter time limits, sanctions and family caps with regards to receiving welfare benefits. Ten percent more Blacks operate under the threat of full-family sanctions than Whites. There are numerous reports of people of color being denied translators or documents in their primary languages as well as being denied access to educational and training programs instead they are sent to "dress for success" classes that do not help to get people of color into higher wage earning jobs ( see Jobs & Race, 2001). The average income for Blacks and Latinos leaving welfare is $1,000 less than Whites and Whites are more likely to receive aid up to three months after leaving assistance. In addition, return rates for Latinos are higher in every state except Florida .
Related Issues
This report gives a nationwide portrait of how racial minorities are disproportionately impacted by recession. The report reveals that it took the Black community three years and the Latino community six years to recover from the last economic downturn with the recent welfare reform limiting financial assistance to five years, minorities will be forced to leave aid without prospects for future jobs. Also, with people of color being referred away from education and training, they are being pushed into low wage jobs which experience the most loss in times of recession. In relation to Rhode Island 's provisions under the Family Independence Act, it seems as though Rhode Island is above the national figures in terms of access to training, child care subsidies etc. but since the state data is not aggregated by race there is no conclusive data to show that Rhode Island is treating its minorities better.
Reference List
Jobs & Race: Innovations in Workforce Development for Minority Job Seekers and Employers . The Annie E. Casey Foundation, 2001
How to access report
http://www.arc.org/welfare/pr020620.htm/