The economic crash following the pandemic resulted in the most unequal recession to face this country in decades, according to a Washington Post analysis of job losses. Many different demographics, including under-represented enterprises, have felt the economic challenges of COVID-19 and the following recession, particularly along race, gender and class lines.
Impact on Minorities
COVID-19 kicked off the largest global economic crisis in almost a century. The economic downturn caused by this pandemic is likely to leave a negative impact on many sectors for years to come. As seen in previous recessions, COVID-19 has hit minorities in the workforce and minority-led businesses the hardest.
Women, in particular, have experienced major setbacks in the workplace due to the pandemic. At the beginning of 2020 women held just over half of all available jobs for the second time in U.S. history, but ended the year holding 860,000 fewer jobs than men. With 1 in 4 women downshifting their careers or leaving the workforce completely in 2020, mainly due to increased childcare demands, gender equality in the workplace has experienced a major setback and future opportunities for women in leadership are in jeopardy. When women are no longer in leadership roles, support systems, office allies and mentorship programs take a hit - all essential parts of paving the way for future women in the workplace.
Black and Latina women have suffered more as a result of the pandemic, compared to other demographics. During the peak of the recession the unemployment rate for Latinas hit a staggering 20.1%, largely due to the impact on the education and health services and hospitality industries. The unemployment rate for Black women reached its peak last spring at 16.6%, with recent studies showing potential employment opportunities are not returning as quickly as hoped. At the beginning of 2021, Latinas were still experiencing the highest unemployment rate of all demographics at 9.1%, with Black women coming in second at 8.4%.
The past year brought its own unique set of challenges for Black-owned businesses. A<a href="https://nypost.com/wp-content/uploads/sites/2/2020/08/BlackEntrepreneurs.jpg?quality=90&strip=all" > survey of Black business owners conducted last summer found that 76% of Black-owned businesses had been negatively impacted due to COVID-19, despite 75% of Black business owners across the country seeing their business increase following a growth in participation in the Black Lives Matter movement.
While these statistics may look bleak, there are proactive ways to make sure your minority-led enterprise sees a faster recovery with real, scalable growth.
Business Growth Following COVID-19
How can your business beat the odds and come back better than before? Strategic marketing can play a big role in business growth from attracting, educating and engaging customers to building a strong reputation and client relationships. Successment uses marketing magic to provoke market disruption for under-represented enterprises while embracing diversity and inclusion across thought, race, religion, age, identity, gender, ability, color, class, and background.
Successment is here to provide the marketing and growth support you need to help your business reach new heights. Through its proven, four-step B.O.O.M. process Successment develops a series of personalized goals and action steps tailored to your organization's current state of business and unique growth challenges to help you succeed. Hear what our clients have to say about their experience with Successment, or contact us to get started on your path to BOOMing success today.