Equal Employment Opportunity

Despite many federal efforts to provide equal employment opportunities regardless of race, such as the Civil Rights Act of 1991, economic outcomes for African Americans persistently lag behind those of whites in the United States. This fact sheet examines data from the Equal Employment Opportunity Commission to determine whether African Americans were uniquely affected by the 1990-91 recession and whether the emphasis on overall progress in minority employment has caused many employers to overlook the specific employment situation of African Americans. GAO compares (1) the length of time displaced African American workers were unemployed with unemployment spells for displaced workers of other racial groups and (2) the reemployment wages of displaced African Americans with those of displaced whites and Hispanics. In addition, GAO examined these factors for the years 1982 to 1991, allowing GAO to see how they varied during an entire business cycle.

GAO noted that: (1) during the 1990 through 1991 recession, blacks were 15 percent more likely to lose their jobs than whites; (2) of the four racial groups examined, Hispanic and black workers had the highest layoff rate and Asians had the lowest layoff rate; (3) although the high displacement rate among blacks was due in part to the recession's impact on industries and occupations in which they were overrepresented, differences persisted after accounting for industrial and occupational affiliations, education levels, and worker age; (4) displaced black workers were unemployed slightly longer than workers in the other groups; (5) between 1990 and 1991, black workers averaged about 12 weeks of unemployment, white workers averaged 11 weeks of unemployment, and Hispanics averaged 10 weeks of unemployment; (6) although reemployed black workers experienced the highest loss in weekly earnings, white and Hispanic employees experienced average earnings losses of about 9.5 percent and 5.3 percent, respectively; (7) during years of economic growth, workers of all races experienced less job displacement and displaced workers spent less time on unemployment; and (8) black workers consistently experienced the worst labor market outcomes regardless of the state of the economy.