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Economy

The African-American Unemployment Crisis Continues

The American labor market continued its steady recovery in October, as the latest data from the Bureau of Labor Statistics showed that the economy added 171,000 jobs last month. The nation’s unemployment rate is now 7.9 percent, and there is an unquestionable recovery taking place. Lost in the positive news, though, is that the unemployment rate for African-Americans rose nearly a full point to 14.3 percent, up from 13.4 percent in September.

The black unemployment rate has fallen from its Great Recession peak of 16.7 percent, but it’s at the same level it was in October 2011, even though the nation’s overall unemployment rate has fallen more than a full point since then. As this chart from The Roosevelt Institute’s Mike Konczal shows, black unemployment averaged 8.6 percent before the recession:

And while the 7.9 percent overall unemployment rate is still too high, it would represent a historical low for blacks, whose unemployment rate has been over 10 percent for most of the last 50 years:

Austerity policies that have crunched federal and state governments partially explain the problem. Blacks are more likely than whites to work in the public sector, meaning the loss of more than 600,000 government jobs at the federal, state, and local levels has disproportionately impacted them. The public sector shed another 13,000 jobs in October.

Had the government kept pace with previous levels of job creation, the overall unemployment rate would be a full point lower than it is today. It stands to reason that black workers, one-in-five of whom work in the public sector, would have filled a significant amount of those jobs.

The larger story, though, is that high black unemployment is a structural problem that has resulted from centuries of less access to education and higher-paying jobs. Sixty years after the Supreme Court officially desegregated American schools, they remain largely segregated along racial and economic lines. Students from low-income, low-education backgrounds, more likely to be black, are less likely to go to college; even high-achieving students at low-income schools are less likely to attend college than similar students at high-income schools. And black students are more likely to fall on the wrong side of the growing education gap between the rich and the poor.

That has created a cycle of rising income inequality that was only exacerbated by the recession, when the wealth gap between black and white families doubled (blacks were twice as likely to have been hit by the housing crisis as whites, thanks in part to discriminatory lending policies). Declining unionization rates are more likely to hurt black workers, and cuts to all sorts of social programs, from public transportation to the safety net, have made it harder for black workers to participate fully in the economy.

This is nothing short of a crisis. And unlike the unemployment crisis that has afflicted the United States since the Great Recession began, it is not one that will be addressed simply by fostering economic growth.

NEWS FLASH

‘The New Black’ Documentary Examines Maryland Marriage Fight | Filmmaker Yoruba Richen has been working on her documentary, The New Black, ever since African-American voters were unfairly blamed for Proposition 8′s passing in California. She has adapted part of her film for an Op-Doc examining the marriage equality fight in Maryland as it is playing out in the African American community. Watch it at the New York Times. On a related note, the National Organization for Marriage is ironically accusing marriage equality advocates of “spending white people’s money to urge black Christians to ignore their pastors.” Indeed the Catholic organization even claims, “The Black Church has always been the conscience, not just of African-Americans, but of all Americans.” The race-baiting strategy is fully engaged.

NEWS FLASH

STUDY: Minority Gays And Lesbians More Likely To Attend Non-Affirming Churches | Based on new analysis of data collected in 2004-2005, it seems that Latino and Black lesbian, gay, and bisexual people tend to be more religious than their white counterparts, and were also more likely to attend services in non-affirming settings. As a result, they tended to have higher levels of internalized homophobia than Whites. Also of note is that although LGB Americans tend to be less religious than heterosexuals, those in this study reported higher levels of spirituality. It’s unclear how outspoken support of LGBT equality by prominent leaders in Black and Latino religious communities in the years since these data were collected has shifted the dynamics.

Health

STUDY: Alcohol Advertising Disproportionately Targets Black Youth

One of the advertisements researchers believe are disproportionately reaching black youth

A new study from the Johns Hopkins Bloomberg School of Public Health points out that — despite the fact that African-American youth drink less alcohol than youths from other racial groups — African-Americans between the ages of 12 and 20 are disproportionately exposed to greater amounts of alcohol advertising. The study’s authors note that black youth tend to consume more media, which contributes to their increased exposure, but research also suggests that alcohol advertising is specifically targeted at African-American teens.

The study notes that there are other factors — particularly religious commitment, ethnic identity, and socioeconomic status — that impact youths’ decision about whether or not to drink alcohol, and marketing campaigns represent just one influencer among many. However, the study’s authors do believe their findings indicate alcohol advertisers have a responsibility to exercise “restraint” in their advertising campaigns now that they know African-American teens may be more susceptible to their marketing materials:

Given higher levels of media usage among African-Americans, alcohol marketers have an obligation to avoid exposure to an at-risk population. In each advertising medium, a small number of brands deliver significantly more advertising exposure to AfricanAmerican youth than to youth in general, sometimes two to four times as much. Specific publications, radio formats, and television channels also expose African-American youth to more alcohol advertising than youth in general, and in some cases, to more alcohol advertising than African-American adults. That certain brands, channels, and formats expose African-American youth to alcohol at a rate double or more than that of all youth suggests that particular attention and action are needed from these advertisers and media.

Researchers reported that although alcohol advertising in magazines declined by nearly 20 percent overall between 2003 and 2008, black youth saw 32 percent more ads for alcohol in magazines than the general American youth population did in 2009. And they were 92 percent more likely to see ads hawking “alcopops” — sweetened alcoholic beverages that alcohol industry watchdogs say are specifically marketed to appeal more to youth. Researchers found this pattern held true for other types of media marketing as well, with African-American youth 17 percent more likely to see alcohol ads on television and 32 percent more likely to hear radio ads for hard liquor.

Despite the correlations that the study draws, it does not claim that advertisers themselves are strategically targeting black youth. “I can’t call it targeting because targeting implies intent and I can’t prove intent,” the study’s author, David Jernigan, told Fair Warning. However, Jernigan is skeptical of alcohol advertisers’ claims that they have no control over whether teens end up seeing marketing materials that are primarily intended for adult eyes. “The industry knows quite precisely what they are doing,” Jernigan said.

Economy

Lawsuit: Bank Of America Failing To Maintain Foreclosed Homes In Black, Latino Neighborhoods

A nonprofit group that supports fair housing has filed a lawsuit claiming that Bank of America, the nation’s second largest mortgage servicer, has failed to maintain and market foreclosed homes in African American and Latino neighborhoods the same way it does in white neighborhoods.

The National Fair Housing Alliance filed the complaint with the Department of Housing and Urban Development after examining Bank of America-owned properties in eight American cities and finding “significant racial disparities” in how the properties were maintained and marketed to potential buyers, Reuters reports:

The group reviewed 373 properties owned, managed or serviced by Bank of America in eight U.S. cities as part of its ongoing examination of how U.S. lenders maintain bank-owned properties. Investigators evaluated properties for problems such as broken windows, overgrown lawns, trash accumulation and a lack of “for sale” signs.

We have found significant racial disparities,” Shanna Smith, chief executive officer of the National Fair Housing Alliance in a conference call with reporters.

NFHA filed similar complaints against Wells Fargo, the nation’s largest mortgage servicer, and U.S. Bancorp earlier this year after it released a report detailing the disparities between white and black and Latino neighborhoods. The report looked at bank-owned homes in nine cities and found that properties in black and Latino neighborhoods were more likely to be left in disrepair than homes in white neighborhoods, driving down home prices, increasing vagrancy and crime rates, and making it harder to sell homes in those neighborhoods.

Discrimination was widespread throughout the mortgage and foreclosure process leading up to and after the housing crisis. Black and Latino borroweres were twice as likely to have been affected by the crisis because banks that used predatory practices against borrowers were even more predatory toward minorities. Pushing qualified lenders into subprime loans cost minorities as much as $100,000 in additional interest payments.

NEWS FLASH

POLL: Majority Support Marriage Equality And DREAM Act In Maryland | A new poll shows that a 51 percent majority of Marylanders will vote to support Question 6, approving the state’s marriage equality law, with 43 opposed. Additionally, 58 percent support the state DREAM Act that will allow undocumented students to pay in-state college tuition rates. As previous polls have found, support among African Americans continues to grow for marriage equality, with 44 percent saying they are supportive, up from 33 in January.

Education

STUDY: American Schools Still Largely Segregated On Racial, Economic Lines

Nearly 60 years after American schools were desegregated by a landmark Supreme Court decision, they are still largely segregated along racial and socio-economic lines, an analysis of Department of Education found.

American schools have a larger share of African American and Latino students than ever before, but students from those groups are likely to attend schools with few white students, the study from the University of California, Los Angeles found, as the New York Times reports:

Across the country, 43 percent of Latinos and 38 percent of blacks attend schools where fewer than 10 percent of their classmates are white, according to the report, released on Wednesday by the Civil Rights Project at the University of California, Los Angeles.

And more than one in seven black and Latino students attend schools where fewer than 1 percent of their classmates are white, according to the group’s analysis of enrollment data from 2009-2010, the latest year for which federal statistics are available.

The segregation isn’t limited to race: across the country, schools with high minority populations often have high low-income populations as well, and “typical black or Latino student attends a school where almost two out of every three classmates come from low-income families,” the Times reports.

The segregation of American schools has perpetuated and exacerbated the education gap that exists between black and Latino students and their white and Asian counterparts. American students from less-educated, lower-income backgrounds are less likely to go to college than they are in other countries, and even high-achieving students from low-income backgrounds are far less likely to complete college than similar students from upper-income backgrounds. That has suppressed economic mobility for blacks and Latinos, two groups already disadvantaged in the American economy.

Economy

How Union Membership Benefits African American And Latino Workers

Workers across the country experience a “union premium” — an increase in wages for workers who belong to a labor union compared to workers who are not organized. That premium amounted to $1.24 per hour last year, a 17.3 percent premium. And according to a new study from the Economic Policy Institute, union membership is even more important for African American and Latino workers, whose union premiums exceed that of white workers.

Black union members have a union premium of $2.60, earning them about 17.3 percent more than black non-union workers. Black men who belong to a union see a 20 percent increase over the normal wage; for black women, the increase is 14.8 percent. Union membership is even more beneficial to Latinos, whose men and women workers earn union premiums of 29.3 percent and 15.7 percent, respectively. (Latinos’ union premium is 23.1 percent overall.):

The importance of union membership to blacks and Latinos is significant, given that both groups are already disadvantaged in the American economy. Both groups have unemployment rates that are far higher than the nation’s 8.3 percent rate. Black unemployment, in fact, has spent most of the last five decades above 10 percent. Black and Latino women are more likely to face larger gender wage gaps than whites, and blacks and Latinos face significant wage and wealth gaps when compared to white workers and families.

Unionization played an important role in the creation and prosperity of the American middle class, and the decline of America’s labor movement has significantly contributed to stagnation of wages and the rise of income inequality. The further decline of labor only stands to hurt workers who are already disadvantaged.

NEWS FLASH

POLL: Marriage Equality Support Improves In Nevada | A new Public Policy Polling poll shows that support for marriage equality has improved in Nevada to 47 percent, with 42 percent opposed, up from 45-44 a year ago. More dramatically, 80 percent of voters support at least civil unions for same-sex couples — up from 77 percent — with only 17 percent opposed to any form of relationship recognition. On Top Magazine noticed that there was a sharp increase in marriage equality support among African-Americans, increasing from 21 percent to 47 percent, likely reflecting President Obama’s endorsement this past May.

NEWS FLASH

Mortgage Company Settles Discriminatory Loan Charges For $3.5 Million | A mortgage company that was charged with overpricing loans for nonwhite borrowers will pay $3.5 million to the 600 African American and Latino borrowers who paid higher mortgage rates than whites from 2005 to 2009, the New York Times reports. GFI Mortgage Partners will also pay a $55,000 fine, the maximum allowed under the Fair Housing Act. GFI admitted in a statement that federal investigators found that it overcharged minority borrowers, a problem that isn’t isolated to one company: blacks and Latinos were twice as likely as whites to be affected by the housing crisis, as lenders often pushed them into subprime loans and overcharged them on their mortgages.

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