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Stimulus Part II: Job Creation and Recovery for African-Americans

By C. Nicole Mason

The Administration is mulling over the possibility of another stimulus bill that would focus on job creation. The likely companion to the American Recovery and Reinvestment Act of 2009 comes at time when the national unemployment rate has hit a record high of 10.2 percent. In the African-American community, unemployment has climbed to nearly 16 percent, nearly 50 percent above the national rate. For African-American men, the numbers are even more severe at 17.1 percent compared to 9.9 percent for white men.

Until now, the Administration has been reluctant to address unemployment rates or target dollars for job creation in specific communities. However, any new bill under consideration should work directly to reduce the unemployment rate and create jobs in the African-American community.

The $787 billion ARRA promised to create 3.7 million jobs by early 2010, but reports from the Administration show that only about one million jobs have been created. And it is unclear how many of those jobs have gone to African-Americans or to minority communities that have been hit hardest by the recession.

In industries targeted for job creation in the first stimulus bill, African-American make up less than seven percent of workers and even less of those in managerial positions in those industries. Without specific and targeted support, it will be difficult to turn around those higher than national average unemployment numbers in the black community.

stimulus-moneyThere is the feeling that if Obama provides support directly to blacks and Latinos, he will be perceived as favoring those groups over others—i.e. The Black President is using his power and influence to unfairly help Blacks and Latinos when the entire country is suffering.

While it’s certainly true that the entire country is suffering during this time of economic crisis, there’s no denying that the recession has made the already vulnerable economic position of blacks and Latinos worse. African-Americans have fewer assets and savings compared to whites. And 68 percent of blacks have no financial assets whatsoever and live from paycheck to paycheck.

In cities and states with a sizeable African-American population, the unemployment rate has reached as much as nearly 40 percent. Detroit, Michigan, for example, has an unemployment rate of 30 percent, with some areas climbing to as much as 36 percent. Unemployment is also compounded by the high levels of poverty experienced by individuals living in those cities. In Detroit, one-third of residents live below the official poverty line.

Very few details have been released about what the new stimulus bill will contain except for some talk of tax cuts for businesses that hire new employees and support for highway construction.

That’s not enough. The new job creation bill has to do more for African-Americans and minority communities. Passively hoping that recovery and stimulus efforts will trickle down to communities of color will not work. The Administration has to be proactive in order to stop the hemorrhaging happening in communities of color and reduce intersections of unemployment and poverty. A special task force should be established to examine the higher than average unemployment rates in Black and Latino communities and to develop long-term strategies to support long-term recovery.

Funds should also be dedicated to minority-owned businesses in hard-hit cities and communities to ensure that they remain open and are able to continue to provide services to the community. Further, monies should be set aside for training, education and outreach to racial and ethnic minorities. To ensure that efforts initiated by the Administration reach those most in need.

Critics of the job creation bill say that the country cannot afford another stimulus package. The reality is that we cannot afford not to pass one. At the beginning of recession, recovery was predicated on the unemployment rate stabilizing, but it is likely that numbers will continue to increase before we see any significant decline. As a result, we will have to think seriously and creatively about how to create, save, or bring back jobs to communities across the country.

Dr. C. Nicole Mason is the Executive Director of the Women of Color Policy Network at the Wagner School of Public Service at New York University.

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