Blacks hit hard by economy’s punch

34.5 percent of young African American men are unemployed 

Unemployment skyrockets for young African Americans 

The nation’s rising unemployment has afflicted young African Americans at greater rates than any other socioeconomic group, reaching Great Depression proportions and accelerating a reversal of hard-won economic gains of the 1990s.

By V. Dion Haynes

Washington Post Staff Writer

Tuesday, November 24, 2009

 These days, 24-year-old Delonta Spriggs spends much of his time cooped up in his mother’s one-bedroom apartment in Southwest Washington, the TV blaring soap operas hour after hour, trying to stay out of the streets and out of trouble, held captive by the economy. As a young black man, Spriggs belongs to a group that has been hit much harder than any other by unemployment. 

Joblessness for 16-to-24-year-old black men has reached Great Depression proportions — 34.5 percent in October, more than three times the rate for the general U.S. population. And last Friday, the Bureau of Labor Statistics reported that unemployment in the District, home to many young black men, rose to 11.9 percent from 11.4 percent, even as it stayed relatively stable in Virginia and Maryland. 

His work history, Spriggs says, has consisted of dead-end jobs. About a year ago, he lost his job moving office furniture, and he hasn’t been able to find steady work since. This summer he completed a construction apprenticeship program, he says, seeking a career so he could avoid repeating the mistake of selling drugs to support his 3-year-old daughter. So far the most the training program has yielded was a temporary flagger job that lasted a few days. 

“I think we’re labeled for not wanting to do nothing — knuckleheads or hardheads,” said Spriggs, whose first name is pronounced Dee-lon-tay. “But all of us ain’t bad.” 

Construction, manufacturing and retail experienced the most severe job losses in this down economy, losses that are disproportionately affecting men and young people who populated those sectors. That is especially playing out in the District, where unemployment has risen despite the abundance of jobs in the federal government. 

Traditionally the last hired and first fired, workers in Spriggs’s age group have taken the brunt of the difficult economy, with cost-conscious employers wiping out the very apprenticeship, internship and on-the-job-training programs that for generations gave young people a leg up in the work world or a second chance when they made mistakes. Moreover, this generation is being elbowed out of entry-level positions by older, more experienced job seekers on the unemployment rolls who willingly trade down just to put food on the table. 

The jobless rate for young black men and women is 30.5 percent. For young blacks — who experts say are more likely to grow up in impoverished racially isolated neighborhoods, attend subpar public schools and experience discrimination — race statistically appears to be a bigger factor in their unemployment than age, income or even education. Lower-income white teens were more likely to find work than upper-income black teens, according to the Center for Labor Market Studies at Northeastern University, and even blacks who graduate from college suffer from joblessness at twice the rate of their white peers. 

Young black women have an unemployment rate of 26.5 percent, while the rate for all 16-to-24-year-old women is 15.4 percent. 

Victoria Kirby, 22, has been among that number. In the summer of 2008, a D.C. publishing company where Kirby was interning offered her a job that would start upon her graduation in May 2009 from Howard University. But the company withdrew the offer in the fall of 2008 when the economy collapsed. 

Kirby said she applied for administrative jobs on Capitol Hill but was told she was overqualified. She sought a teaching position in the D.C. public schools through the Teach for America program but said she was rejected because of a flood of four times the usual number of applicants. 

Finally, she went back to school, enrolling in a master’s of public policy program at Howard. “I decided to stay in school two more years and wait out the recession,” Kirby said. 

On a tightrope 

The Obama administration is on a tightrope, balancing the desire to spend billions more dollars to create jobs without adding to the $1.4 trillion national deficit. Yet some policy experts say more attention needs to be paid to the intractable problems of underemployed workers — those who like Spriggs may lack a high school diploma, a steady work history, job-readiness skills or a squeaky-clean background.

“Increased involvement in the underground economy, criminal activity, increased poverty, homelessness and teen pregnancy are the things I worry about if we continue to see more years of high unemployment,” said Algernon Austin, a sociologist and director of the race, ethnicity and economy program at the Economic Policy Institute, which studies issues involving low- and middle-income wage earners. 

Earlier this month, District officials said they will use $3.9 million in federal stimulus funds to provide 19 weeks of on-the-job training to 500 18-to-24-year-olds. But even those who receive training often don’t get jobs. 

“I thought after I finished the [training] program, I’d be working. I only had three jobs with the union and only one of them was longer than a week,” Spriggs, a tall slender man wearing a black Nationals cap, said one afternoon while sitting at the table in the living room/dining room in his mother’s apartment. “It has you wanting to go out and find other ways to make money. . . . [Lack of jobs is why] people go out hustling and doing what they can to get by.” 

“Give me a chance to show that I can work. Just give me a chance,” added Spriggs, who is on probation for drug possession. “I don’t want to think negative. I know the economy is slow. You got to crawl before you walk. I got to be patient. My biggest problem [which prompted the effort to sell drugs] is not being patient.” 

The economy’s seismic shift has been an equal-opportunity offender, hurting various racial and ethnic groups, economic classes, ages, and white- and blue-collar job categories. Nevertheless, 16-to-24-year-olds face heavier losses, with a 19.1 percent unemployment rate, about nine points higher than the national average for the general population. 

Their rate of employment in October was 44.9 percent, the lowest level in 61 years of record keeping, according to the Bureau of Labor Statistics. Employment for men in their 20s and early 30s is at its lowest level since the Great Depression, according to the Center for Labor Market Studies. 

Troubling consequences 

Unemployment among young people is particularly troubling, economists say, because the consequences can be long-lasting. This might be the first generation that does not keep up with its parents’ standard of living. Jobless teens are more likely to be jobless twenty-somethings. Once forced onto the sidelines, they likely will not catch up financially for many years. That is the case even for young people of all ethnic groups who graduate from college. 

Lisa B. Kahn, an economics professor at Yale University who studied graduates during recessions in the 1980s, determined that the young workers hired during a down economy generally start off with lower wages than they otherwise would have and don’t recover for at least a decade. 

“In your first job, you’re accumulating skills on how to do the job, learning by doing and getting training. If you graduate in a recession, you’re in a [lesser] job, wasting your time,” she said. “Once you switch into the job you should be in, you don’t have the skills for that job.”

 Some studies examining how employers review black and white job applicants suggest that discrimination may be at play. 

“Black men were less likely to receive a call back or job offer than equally qualified white men,” said Devah Pager, a sociology professor at Princeton University, referring to her studies a few years ago of white and black male job applicants in their 20s in Milwaukee and New York. “Black men with a clean record fare no better than white men just released from prison.”

Published: November 17, 2009

http://www.nytimes.com/aponline/2009/11/17/business/AP-US-Foreclosures-Minorities.html

Filed at 12:52 a.m. ET 

NEW YORK (AP) — Black and Latinos are at a disproportionate risk in the ongoing foreclosure crisis because they are more likely than whites to have higher-cost mortgage loans and face higher unemployment rates, a report says.

The report from the William C. Velasquez Institute called on the federal government to take steps, including reforming bankruptcy laws and expanding eligibility for mortgage modification efforts, to help combat the crisis.

”If nothing is done then the foreclosures will continue disproportionately hitting blacks and Latinos,” said UCLA professor Raul Hinojosa the author of the study.

Hinojosa was in New York City on Monday to talk about the report that was officially released last week. He said continued foreclosures could wipe out billions of dollars in home equity wealth amassed in those communities, and even those black and Latino homeowners who kept their homes would be affected by lower property values in foreclosure-riddled neighborhoods. ”Not only are you wiping out this generation of black and Latino families,” he said, ”but those neighborhoods go into serious decline.’

Jose Calderon, vice president of programs and policy for the Hispanic Federation, which took part in the Monday event, said the foreclosures carried a far-reaching impact.

”The social cohesion of our communities is being destroyed,” he said.

Unemployment is now the primary force behind foreclosures. Borrowers are struggling with no income and lenders are having a harder time reworking troubled loans. Blacks and Latinos suffer in comparison to whites both in unemployment rates and having loans with higher interest rates.

The nationwide unemployment rate is 10.2 percent. For blacks, it’s 15.7 percent and for Latinos, 13.1 percent.

As far as high-cost mortgages are concerned, the report said that in regions across the country, blacks and Latinos were anywhere from two to nine times as likely as whites to have those kinds of loans.

The William C. Velasquez Institute is a nonpartisan think tank that studies Hispanic issues. ]]> http://wercampaign.org/2009/12/07/report-foreclosure-crisis-hits-blacks-latinos/feed/ 0