82.4 F
New York
Monday, August 3, 2020

May Jobs Report Not Good For All

Must read

This Day in History: August 1st

Educator and Civil Rights Activist Benjamin Mays Was Born The spiritual mentor to Dr. Martin Luther King Jr.,...

Coach Cass: Are You Ready For Love?

Casandra (Coach Cass) Henriquez, relationship guru and bestselling author kicks off podcast letting you know who she is and how she became...

This Day in History, August 2nd

Best-selling author and activist, James Arthur Baldwin was born on August 2, 1924, in Harlem, New York. His eloquence and passion on race relations...

Best of: James Baldwin: “Freedom Can’t Be Given, It Must Be Taken!” (Part 1)

On what would be the 96th birthday of James Baldwin, Karen shares an interview he did in 1960 and breaks it into...
The Hub News Staff
The Hub News Staffhttps://thehub.news
Curators and highlighters of news and accomplishments from the Global Majority. From tech to books, wellness to money, throughout the diaspora we are bringing content that is both unique and focused on showing the world our best.

According to the May jobs report, the United States has created 223,000 new jobs and the unemployment rate has settled at an 18-year low at 3.8%. Even hourly pay rates have risen by 8 cents, or 0.3% to $28.92 an hour in May.

But one demographic is missing out on this rising tide which should be lifting everyone, black college graduates.

A black person graduating from college today can expect to make less than their classmates when they land that first job. Even if education and experience are equal, a black graduate will earn $3.34 less than their white classmates, both male and female. If $3.34 doesn’t sound like much to you how about $6,947.20, which is the pay disparity in one year.

According to a study published last month by the Economic Policy Institute, this type of “unexplainable” disparity is contributing to the wealth gap in ways that are not being considered, such as student loan debt and the ability to save for retirement when it’s most prudent (such as when you land your first job).

African Americans often must borrow more money to pay for their degrees but on the flip side they are paid less upon graduation, which hinders their ability to pay back those loans quickly, if they can afford to pay all.

Many have loans that are extended, which leads to years of paying just interest, which creates an albatross for the second stage of a young adult’s life. This can lead to poor credit, which can greatly hamper his or her ability to build wealth through home ownership.

Until salaries become transparent and tribalism ceases to exist in the workplace, the path to closing the wealth gap will always be uphill African Americans.

However, the power to close the wealth gap and make better financial choices by seeking out degrees in higher-than-average fields, and making sure to establish a 529 account on the day your child is born is big step forward that can and should be taken.

 

- Advertisement -

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisement -

Latest article

This Day in History, July 29th

On July 29, 1895, more than 40 African-American women, representing organizations from 14 different states, came together to hold the First National Conference of...

Tanzania’s Exiled Opposition Leader Tundu Lissu Returns

Opposition leader and presidential hopeful Tundu Lissu has returned to Tanzania nearly three years after he fled the country following an assassination...

Uganda Confirms First Coronavirus Death

Uganda has confirmed its first COVID-19 death more than two months after the first case was discovered. Director General Health Services, Henry...

Compounding Can Change Your Life

Compounding is said to be the Eighth Wonder of the World. So why...

This Day in History: July 26th

Liberia Declares Independence The west African country of Liberia proclaimed its independence on July 26, 1847, making it...