Report: Black Americans, Particularly Black Women, Among Those Hit Hardest By Wage Disparities

Fresh report by Oxfam suggests the essential need for the federal government to address working poverty and raise the minimum wage.

New research shows that a much larger percentage of Black Americans, particularly women in that group, now make less money than their peers nationwide.

While 23% of all U.S. workers are bagging low wages (defined in a report under $17 an hour), the proportions are much higher when broken down by race and gender.

Some 32% of Black workers earn less than $17 an hour, versus 21% of white workers, based on a fresh analysis by Oxfam, which describes itself as a global organization fighting inequality to end poverty and injustice. And 35% of Black women earn low wages, compared to 29% of Black men, 25.9% of white women, and 17.4% of white men.

The report, “The Crisis of Low Wages,” uncovered some startling findings. Over 39 million U.S. workers — nearly one in four — earn low wages. Single parents working make up 42% of those earning less than $17 an hour, opposed to just 12% of partnered parents.

Among Those Most Impacted: Women And Communities Of Color

The discoveries revealed that women and communities of color, including Black workers, are most affected by low wages and stagnating minimum wage policies. The federal minimum wage for covered nonexempt employees is $7.25 per hour, according to the U.S. Department of Labor.

Oxfam reported the $7.25 has been stuck at the level since 2009. Earlier this year, it was reported the minimum wage rose $15 per hour in 22 states as of Jan. 1.

The organization said states that have not raised their minimum wage above the federal standard have a higher share of workers of color making low wages, particularly in the South. Take Mississippi, with 34% of all workers earning low wages, 46% of Black workers earn low wages. In Texas, the state with the nation’s largest Black population, 34.2% of Black workers earn low wages.

The report stresses the urgent need for the federal government to address working poverty and raise the minimum wage.

“Low-wage workers, who are disproportionately women of color, are the backbone of our economy. The least this country can do is pay them wages that cover basic necessities—something the current federal minimum wage does not do, regardless of where in the U.S. you live,” stated Kaitlyn Henderson, the report’s author and senior researcher at Oxfam America.

She added, “We’re talking about the childcare and domestic workers who care for our families, and the agricultural workers who help put food on our tables. But decades of occupational segregation have meant these jobs that employ majority women, immigrants, or people of color have been systemically underpaid and undervalued. This needs to change.”

William Michael Cunningham, an economist and owner of Creative Investment Research, declared that the lack of effective federal action on reducing income inequality led to wider gaps and more significant hardships for the communities.

He said Black women are often doubly disadvantaged due to both racial and gender discrimination, leading to higher rates of low-wage employment versus other demographics.

He mentioned Black women are disproportionately represented in low-wage sectors such as healthcare support, retail, and food service. He added they earn just 63 cents for every dollar earned by white, non-Hispanic men. “Black women also shoulder significant caregiving responsibilities, both for children and elderly family members.”

Why Black Americans Are More Greatly Impacted

Henderson shared with BLACK ENTERPRISE that the higher percentages of low-wage workers in the Black community stem from long legacies of racial and gender discrimination in the United States that can be traced throughout the history of this country.

She explained when minimum wage laws were written in the late 1930s, industries that employed mostly Black workers in the South, such as agricultural workers and domestic workers, were written out of wage protections.

She said these exclusions are echoed today, with continued occupational segregation. She pointed out that includes jobs that employ disproportionately high numbers of workers of color, and especially women of color, who are paid lower wages.

“As we mention in our report, there was a recent study done by the Department of Labor Women’s Bureau that show how Black and Latina women lose literally billions of dollars due to occupational segregation.”

Suggestions To Help Improve Future Conditions

So, what can be done to help reduce those numbers? Henderson suggested that wages for all workers need to be raised as well as ending all exclusions to minimum wages by passing the Raise the Wage Act, to increase the minimum wage to $17. Oxfam indicated it partly was inspired to do the latest report by the changing terms of the act.

As for occupational segregation, Henderson said there are bills in Congress now that can confront head-on wage gaps, like the Paycheck Fairness Act. She said that that can support women entering higher paid professions that tend to be dominated by men — like the FAMILY Act and the Schedules That Work Act.

Going forward, Cunningham said the most critical factor in improving the economic situation for low-wage workers, particularly Black women, is robust policy intervention.

He said that increasing the federal minimum wage would provide immediate financial relief to low-wage workers. Further, he stated there’s a need to provide better access to affordable education and job training programs, including community colleges, vocational training, and apprenticeships. He also suggested strengthening childcare support, healthcare access, and paid family leave.

While the situation remains dire, Cunningham said there have been some improvements under the current administration compared to the Trump era. He pointed to a greater focus on addressing racial and economic inequalities through various policy measures, though progress has been slow. He sais some states, outside the South, have taken independent action to raise their minimum wages, providing a better standard of living for low-wage workers.

“The persistent high proportion of low-wage workers of color in the South highlights the need for comprehensive federal and state-level interventions to address wage disparities and systemic barriers. Significant efforts are required to ensure equitable economic opportunities for all workers, regardless of race or geography.”