Minority groups experienced pronounced, disproportionate economic impacts from the pandemic, according to analysis by the researchers at the Charlotte Regional Business Alliance.
Minorities had an unprecedented drop in workforce representation due to disproportionate social and economic factors from the pandemic. Minority-owned businesses were also hit harder than their white counterparts.
CLT Alliance analysis found a lack of resources for personal and family financial care, as well as transportation deserts to accept jobs and sustain work.
The overrepresentation of minority workers in vulnerable industries, including health care, accommodation and food services, and construction, increased disparities.
Recent available data on economic disparities among racial groups reveal some key takeaways:
Pronounced and vivid gap in workforce representation across industries
Minority groups are overrepresented in industries like health care, and accommodation and food services. These services are vulnerable and require essential workers and were especially impacted by the pandemic. Black workers have the lowest salary within almost all industries except for financial services ($54,463). In health care, Black employees occupy lower-level position than their Asian peers.
Disproportionate income seen across racial groups
Race and ethnicity of individuals affect their wages. When examining workers employed at least one year across all industries, average wages for Blacks ($34,992), Hispanics ($39,259), and mixed individuals ($37,384) are significantly lower than whites ($52,431) and Asians ($57,286).
This disparity is even more pronounced in health care. Asian workers earn on average $104,651 annually within the health care industry, while Black workers earn an average of $32,582.
Minority business ownership
The most recent standardized data on business ownership available by race and ethnicity dates to 2017. About 6% of all businesses with paid employees were Asian owned, 3% were owned by Blacks, and 4% by Hispanics of any race. Black people owned slightly more businesses than Hispanics in 2012. Asian ownership remains the same.
Minority buying power grows consumer market
Educational attainment matched with average higher salaries are proportionally driving minority groups to contribute to consumer growth through their net income. According to the Multicultural Report of the University of Georgia’s Selig Center for Economic Growth, North Carolina is among the 10 states with the largest African American ($75 billion) and Native American ($5 billion) markets in terms of buying power between 2010-2020. The state is also among the states with fastest growth in the Asian market (142%) for the same period.
For a closer look at the data and a more detailed analysis, please see the CLT Alliance findings here.
