EMPLOYMENT & EARNINGS
Black Women have historically been in the workforce, which is a different experience than our white female counterparts. Today, more than 60% of Black Women are in the workforce, making them one of the largest groups of Women with the highest labor force participation rate.
However, earnings for Black women are behind most Women and men’s earnings of other races. And since Black Women are more likely to be the primary earner in 8 out of 10 Black households in California, that $.63 must spread across meeting the basic needs of the family. This is an annual wage gap of $26,125 which equates to nearly 2.5 years of child care; 2.5 additional years of tuition and fees for a four year public university or full cost of tuition and fees for a two-year community college; 155 more weeks of food for her family in a three year period; 14 more months of mortgage and utilities; and nearly 22 more months of rent.
According to recent reports, Black Women spend 50% of their income on housing and 30% on day care. This leaves 20% to pay utilities, buy food, pay tithes, etc. Policies that increase taxes or cuts supplemental programs can be financially devastating to Black Women. Pay day loans and other predatory lending activities in communities of color have become options for Black Women who are trying to meet the basic needs of their families, which further complicate our financial stability.
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Addressing these disparities is not an easy task. Workplace discrimination and implicit bias are still alive and are systemic in many environments particularly in industries that traditionally lack diversity. The area that we see the most growth opportunity is around pay equity. A recent report from AFSCME, the union that represents more than 25,000 low-wage University of California workers, stated that starting wages for black Women are 23 percent lower than starting wages for white men, which work out to a difference of around $16,000 a year. Among service workers, the difference is about 10 percent, or about $4,000.
Regardless of the data, the efforts of pay equity tend to be seen from the lens of our White Female counterparts who make $.75 of their White Male counterparts. Their work is a universal goal to bridge the pay gap for all Women. The thinking is that if they move the needle for them; we all move up.
Unfortunately by focusing on pay equity in one swoop, it tends to miss the issue of the gap between the Women for each race. For instance, Black Women will still have a $.12 pay gap if there aren’t interventions to bring us all to an equal playing field. This will take a collaborative effort between all Women to look for ways to effectively address pay equity. It will require our counterparts to change their narrative and redefine what success looks like.
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Another area of interest is to look at job opportunities verses career opportunities. Nearly a quarter of Black Women in California work in the service industry. The work of organized Labor around improving the living wage has helped create a new narrative on what needs to be done to bridge disparity gaps. There is still a lot of work that needs to be done to align the high cost of living in the state with these efforts. When it comes to leadership positions, Black Women still lack of representation. And when Black Women are in those leadership roles, the support system necessary to succeed tends to be missing in many environments. We also tend to have trouble navigating through the unfamiliar system created by and for other cultures.
In addition, Black Women have a wealth equity gap and as the primary breadwinners of our households this has a significant impact in our ability to thrive. Traditionally, Black Americans garnered our wealth through homeownership. Today, these goals are harder to achieve. In Sacramento, homeownership has plummeted for Black residents. In the early 2000s, there was more than 50% of Blacks in Sacramento owned their homes. Now that percentage hovers around 27% according the Greater Sacramento Urban League. However, without having another source to supplement our incomes homeownership goals are difficult to achieve. Black Women need access to programs that help support a pathway to homeownership.
Moving our agenda forward requires us to address these issues that are uniquely ours. And since Black Women do not have the option on whether or not to participate in the workforce, the following recommendations were created to focus on bridging the most significant gaps.
RECOMMENDATIONS
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Support policies that bridge the gap between the living wage and the cost of living in California
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Develop a statewide land trust specifically focused on opportunities for single mothers to purchase home to alleviate the barriers that many Black Women experience especially in high cost living areas like Los Angeles and the Bay Area
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Join Black Women for Wellness’ efforts to institute a 20% cap on interest rates payday loans and also limiting the times borrowers can refinance or re-borrow in a month
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Work with industry partners to develop and implement tools to bridge success gaps
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Plug and play internships
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Career planning and mapping programs
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Information sharing tools
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Mentorship and Sponsorship programs
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Market analysis on positions annually that includes its impact on Women
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Call on state and county entities to track employment trends of Black Women
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Participate in Board development training programs
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Assess California companies on their efforts to hire, retain and promote Black Women and issue best places to work for Black Women report
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Launch Black Women’s Meet-Up networking events for professional Black Women