Unemployment is one of the most stressful experiences adults can have. Loss of livelihood affects all facets of someone’s existence: their ability to pay for immediate basic needs like food and bills, save for retirement, or cover medical expenses, to name a few.
But although psychological distress due to job loss is ubiquitous, not everyone experiences the same the level of distress. According to a two-year study of over 9,200 racially and ethnically diverse respondents, the mental health of black Americans suffers significantly more than that of white Americans throughout short-term unemployment (less than 16 weeks): 12.5 percent versus 4.4 percent, respectively, among people who had no prior recorded history of psychological distress.
Some major differences between the white and black populations help to explain this disparity.
First, the unemployment rate for black Americans is consistently about twice that of whites. As of July 2018, the unemployment rate for white Americans ages 20 and older was 3.1 percent compared to 6.1 percent of black Americans in the same age group, according to the Bureau of Labor Statistics. The study also found that black Americans experience long-term unemployment at greater rates than white people do: 66 percent compared to 55 percent.
The wealth gap between white and black Americans also explains why black Americans are more stressed about short-term unemployment. In 2016 the Pew Research Center found the median U.S. white household wealth was 10 times that of black household wealth. Because white Americans are generally much wealthier, short-term joblessness does not necessarily have the same immediate negative impact on their life like it does for black Americans.
So, how do we address the disparities in wealth and unemployment between white and black Americans? By diversifying the corporate workplace, which benefits racially and ethnically diverse populations and businesses.
Studies show that companies in the top quartile for racial and ethnic diversity are 35 percent more likely to have financial returns above their national industry medians. Experts say this is because a diverse staff can better understand and fulfill the needs of a wider customer base, thereby boosting sales, while different backgrounds can also lead to a broader range of ideas and innovation.
However, traditional hiring methods—such as campus recruiting or mandating academic degrees—exclude populations that don’t have access to the same education or resources afforded to more affluent groups, which disproportionately affect black Americans. Which is exactly why nontraditional talent cultivation and acquisition, like Workforce Opportunity Services (WOS), is so crucial to diversifying the workplace and bridging the employment and wage gaps between while and black Americans.
WOS acts as a direct pipeline between corporations and diverse talent in underserved populations. The nonprofit has served nearly 4,000 people since 2005—and 52 percent are African American. By helping these individuals develop skills for the corporate workplace and placing them into positions at Fortune 500 companies like General Electric, Johnson & Johnson and Prudential, WOS is helping to break down the walls of racial and economic disparity.
It’s a good thing to change one person’s life, two people’s lives, 10 or 20. But to do something that’s systemic…to actually change the course of the way things are going to be. That’s what we wanted to do.