Black millennials in St. Louis County with a bachelor’s degree on average earned about $23,000 less than their non-Black local counterparts in 2019, according to a new study.
Experts predict the ongoing pandemic will further widen that gap.
On average, Black millennials in St. Louis County with a bachelor’s degree earned $44,155 annually two years ago, according to Lending Tree subsidiary Student Loan Hero, which analyzed data from the U.S. Census American Community Survey.
By comparison, the average income for non-Black millennials in the county with a bachelor’s degree was $66,769 per year.
That income disparity contributes to a persistent “wealth gap” between Blacks and other ethnic groups. And some experts fear the pandemic’s blow to the economy, especially in sectors that employ large numbers of Blacks, will make matters worse.
“If we don’t continue policies to close the economic wealth gap we’re going to see that disparity grow…It’s going to get worse in our country, potentially.” – U.S. Labor Secretary Marty Walsh
“With the pandemic, first of all … we see a lot of Blacks are struggling,” said Dr. Terry Daily-Davis, dean of the College of Arts and Sciences at St. Louis’ Harris-Stowe State University. “Some of those jobs we have lost due to the pandemic. And so with that, we’ve lost income.”
Earlier this year, CNBC reported that for white workers, the unemployment rate fell to 5.6% in February. Black and Hispanic workers, however, reported jobless rates of nearly 10% and 8.5%, respectively.
And the statistics were worse for Black women. Employment for Black women was nearly 10% lower than it was in February 2020, according to CNBC. Employment for white men, white women, and Black men was down 5%, 5.4% and 5.9%, respectively.
https://www.cnbc.com/2021/03/05/black-and-hispanic-women-arent-sharing-in-the-job-market-recovery.html
As the economy lumbers back to life, “it seems likely that earnings will have risen for Black millennials with college degrees, but their white peers would see their earnings go up even more,” said Kali McFadden, senior research analyst with Student Loan Hero, which helps Americans living with student debt manage and pay off their loans.
McFadden’s research found an income gap between Blacks and non-Blacks with or without a bachelor’s degree.
In 2019, the average income for millennials in St Louis County without bachelor’s degrees was $37,599 for Blacks, about 20% lower than the $45,353 earned by non-Blacks without degrees.
U.S. Labor Secretary Marty Walsh, who was in St. Louis last week [7/16] meeting with elected officials and community leaders, took the opportunity to tout President Joe Biden’s plan to invest in infrastructure — human and physical — as an important step in helping address the dollar divide.
“If we don’t continue policies to close the economic wealth gap we’re going to see that disparity grow,” said Walsh following a panel discussion on empowering women in the workforce. “If the president’s plan of ‘building back better’ [is not implemented], I think the wealth gap is going to grow, it’s going to get worse in our country, potentially.”
St. Louis Mayor Tishaura Jones, who also attended the event, noted that she’s been “laser-focused” on enacting policies to shrink the gap since her days as treasurer.
She suggested residents concentrate on improving their credit scores “so people have the opportunity to participate in our financial systems in a safe way.”
She also said she sees an opportunity to shrink the racial wealth gap through programs that are contained in Biden’s American Jobs Plan.
Karen Robinson-Jacobs is The St. Louis American / Type Investigations business reporter and a Report for America corps member.
