Report: Economic Gap Widening Between Black And White Arkansans

A new report released by Arkansas Advocates for Children and Families highlights a widening gap between black and white workers and calls on more education, targeted tax relief, and a raise in the minimum wage to turn around the state’s flagging unemployment.

The report, “Fighting Unemployment Will Boost Arkansas’s Economy,” was authored by AACF Senior Data Analyst Kim Reeve.

The analysis noted:

• Arkansas has maintained a high rate of unemployment since the recession;
• The African-American population has historically experienced unemployment at a much higher rate than whites, but that gap widened during the economic downturn between 2008 and 2012;
• Many workers in Arkansas are underemployed. Underemployed workers have part-time jobs when they need full-time work or do not use all of their training for their current job; and
• A worker’s education level has the greatest impact on how much he or she will earn in the future.

Arkansas’ February unemployment rate was 7.1%. The state’s jobless rate has hovered at or above 7% for 61 consecutive months.

The AACF report noted that African-American workers in Arkansas have fared worse than white workers during the recession and recovery. The analysis highlighted:

• African-Americans having the lowest level of household income for many years – lower than whites or Latinos;
• The 16% unemployment rate for African-Americans versus a 6% unemployment rate for whites as of 2012;
• Underemployment by race, which affects more than 25% of African-Americans and just 10% of whites; and
• Arkansans who are classified as long-term unemployed – meaning they’ve been looking for work for a year or more. African-Americans are nearly twice as likely as their white peers to fall into this category.

The report called on more promotion of the federal Earned Income Tax Credit (EITC), a tax credit for working families designed to help low-income earners as they transition to better paying jobs. It also suggested a state EITC.

AACF’s report also called on more pre-K funding to boost education outcomes later in secondary and higher education. It also said the minimum wage was not keeping pace with inflation and should be raised.

You can access the full report here.