Delta Variant And Racial Gaps In Employment, Wages Persist

Employment rose by 235,000 jobs in August, and the unemployment rate declined by 0.2%, according to the most recent Bureau of Labor Statistics numbers. The unemployment rate now sits at 5.2%.

What Happened: While more jobs in the economy is generally welcomed news, many experts, including RSM Economist Joe Brusuelas, are concerned that the economy will never fully recover until more people get vaccinated as the Delta variant continues to cause blockages in supply chain networks and prevents more people from employment.

"What is obvious to those paying attention at home is that the Delta variant has impacted overall economic activity and hiring in the economy," Brusuelas said. "If one wants one's economy back one needs to get vaccinated."

What’s more, while the unemployment rate fell overall, it increased for Black workers, continuing a trend of being almost double that of white workers.

See Also: 'Worrisome Combination': Experts React To Disappointing August Jobs Report

As Economic Policy Institute Senior Economist Elise Gould tweeted, “the unemployment rate fell to 5.2% in August as the labor force participation rate held steady. While a notably volatile series, the Black unemployment rate had a troubling increase of 0.6 percentage points to 8.8% in August after falling a full point between June and July.”

Why It Matters: Racial gaps in unemployment and wage increases between white and Black workers remain a perpetual problem in the American economy.

A new report from the National Women's Law Center demonstrates that in the last 30 years, the wage gap between white men and Black women has only closed by 3 cents, as the latter group earns 63 cents for every dollar made by the former one. That means that without systemic public or private action, the gap would not close until 2130.

This was a problem that was persistent in the American economy well before the pandemic began, as “18% of Black women and 26% of Black children were living in poverty in 2019,” reads the report.

Even as Black female workers make up the largest portion of front-line workers (at 36.8%), they still are estimated to lose $24,110 if the pay gap is not closed.

In order to close the gap, the report advocates bolstering federal and state unemployment programs, expanding access to health care and reproductive care, enhancing equal pay laws and increasing minimum wage laws, among other things.

Photo: Irwan Iwe via Unsplash.