According to the US Department of Labor, the Black unemployment rate hit a new high in March 2024. It is 6.4% for us, while the rate has decreased to 3.8 overall. But when it comes to Black women, the situation is even more concerning. Our unemployment rate went from 4.4% to 5.6%.
People of Color in Tech reported, “In past business cycles, Black workers have been the last to be hired during expansions and first fired during contractions, so an increase in the Black unemployment rate is eye-catching to forecasters,” from Comerica Bank.
But if you look closely, we are represented in every industry where layoffs occur.
DEI Is Under Fire
Last summer, we saw three high-profile Black female Hollywood executives who happened to be DEI chiefs at major studios (Netflix, Warner Brothers Discovery, Disney) and the Academy of Motion Picture Arts and Sciences all lose their jobs over a ten-day period. According to Inc., companies including Zoom, Snap, Meta, Tesla, DoorDash, Lyft, Home Depot, and Wayfair cut DEI teams amid broader layoff plans. Even hospitals, like Johns Hopkins, bowed to the pressure, which led to the departure of Dr. Sherita Golden.
Tech Layoffs Hit Us Hard Too
According to Layoff. Fyi, in 2023, 1186 tech companies laid off 262,682 employees, and so far this year, 168 tech companies have already laid off 42,324. Although we only make up about 7% of the tech workforce, the layoffs disproportionately impacted us. Surprised, no. Okay, neither were we.
Last winter, Congresswoman Barbara Lee and the CBC sent a letter to the acting US Secretary of Labor, Julie Su. “We write to express our concerns with recent reports highlighting the impacts of widespread layoffs within the tech industry and its disproportionate impacts on the African American community and women,” the group wrote.
Bloomberg News revealed “that people of color accounted for 94% of new hires at the US’ largest public companies in the year after the Black Lives Matter protests.” The latest findings show that organizations find a way to do it when pressured to hire and promote qualified, diverse talent.
Our take: sometimes, these moves are performative. You can tell when companies revoke programs when no one after a few years.
Others find the environment less than ideal and are happy to leave when the time comes. “Black people, especially Black women, have reported experiencing discrimination and bias in the tech industry, which can impact their career advancement and overall job satisfaction.” according to Forbes. They choose entrepreneurship instead.
The Healthcare Sector Took a Hit, Too
According to Challenger, Gray & Christmas, the healthcare category, which includes hospitals, medical technology, health insurers, and medical clinics, cut 58,560 jobs last year. An almost 100% increase over the year before. This year, Pfizer, Thermo Fisher Scientific, Sanofi, Catalent, GSK, and Novartis will all restructure or reduce staff. And the healthcare industry employs more than 23% of Black women or more than one in five of us.
The Incredible Shrinking Media Business
Paramount handed out pink slips to over 800 employees across Paramount+ and Showtime. BET, Nickelodeon, and all their other networks. Sports Illustrated’s editorial team was gutted. Vice Media shut down, laying off hundreds of workers. And more than 3,000 jobs this year, plus those coming from Condé Nast. (Add that to the 21,400 media jobs lost last year).
Watch Out For a Change of Mood
When you are unemployed for a period of time, you may develop a form of situational depression. According to Medical News Today, symptoms might include:
Additional Symptoms can include:
(Financial stress may trigger symptoms)
Consider Entrepreneurship
However, as we are pushed out of lucrative positions, many of us have no choice but to try entrepreneurship. According to The Brookings Institute, between 2017 and 2020, the number of Black women-owned businesses increased by nearly 20%, far exceeding the growth of women-owned and Black-owned businesses.
If you decide to strike out your own, check out serial entrepreneur Kathryn Finney’s tips on avoiding entrepreneurial overwhelm.
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