While California congratulates Governor Newsom for keeping his post in the recall election last week, we’re taking a moment to appreciate Californians for showing up to vote for our shared future. Voter turnout is always difficult, important work — and one of the difficulties in turning people out to vote in the recall election was that people don’t feel represented by their elected officials.

By Michelle Huang and Kimi Lee of Bay Rising

Our region’s biggest problems — overpolicing in Black, Indigenous, and people-of-color communities, violence against Asian American and Pacific Islander elders, working-class people and renters being left behind during the pandemic — all require community-led voices and solutions. Especially in the context of local budget shortfalls, having elected officials with knowledge of the experiences of our communities is key to  more equitable distribution of resources and priorities.

This is why we need people in office who reflect our diversity and values — including people who are Black, Latinx, Asian, immigrants, queer, and people with disabilities. While representation does not automatically mean equitable policies, it can make a difference. For instance, in San Jose in June 2021, where all districts are majority of-color, the six city councilmembers of color voted to defer the decision on the Berryessa BART Urban Village Plan in support of Latinx organizers’ and La Pulga vendors’ ability to negotiate for fairer agreements, while the four white city councilmembers and the mayor voted against it. La Pulga is home to over 400 largely Latinx and Asian-owned businesses.

For the past four years, the Bay Area Equity Atlas has tracked data on the diversity of elected officials in the Bay Area. Our analysis from the 2020 elections found that across the region, voters elected more people of color to office, following a steady trend over several years. About 34 percent of top elected officials in the Bay Area are now people of color, up from 29 percent in 2019 and 26 percent in 2018.

Despite this steady increase, people of color remain vastly underrepresented, given that they are roughly two-thirds of the Bay’s population. And just over a quarter of Bay Area cities still have zero people of color on their councils.

There is still much work to do. Corporate money, funneled into local elections and coupled with limited access to expertise and financial support for new candidates, makes it challenging for everyday people, renters, community leaders, and people not well-connected to political parties to run and win campaigns.

We know the solutions. We need campaign finance reforms, leadership development programs for those historically excluded from power, and more voter education and voting options to grow the number of community candidates running for office as well as voter participation.

Of these, campaign finance reforms stand out as especially timely. The 2020 federal elections saw more Wall Street financing than any other election cycle in US history, but that corporate money wasn’t reserved for just the presidential race — many millions showed up in both state and local races in the Bay, making it extremely hard for a diversity of candidates to run viable campaigns. For example, in 2020, wealthy donors raised over $300,000 to spend on Oakland school board races, where those same races used to be won with campaigns spending thousands of dollars, not hundreds of thousands. To counteract this trend, we need campaign finance reform that sets limits on corporate contributions, requires transparent budgets and ads, and promotes public financing.

Bay Area policymakers must pass policies that result in more candidates from underrepresented communities getting elected to city and county offices. We deserve to be represented by leaders who reflect our realities.

Kimi Lee is the Executive Director of Bay Rising, a regional alliance of over 30 Bay Area grassroots organizations building political power among working-class people and communities of color. Michelle Huang is an Associate with PolicyLink who provides data and research support as part of PolicyLink’s National Equity Atlas team.

Our new analysis highlights how communities of color and low-income communities not only suffered the greatest job losses, but are also most likely to be behind on rent.

By Jamila Henderson

The Covid-19 pandemic and economic shutdown brought about an unprecedented rise in unemployment in the Bay Area and across the country. While some people have returned to work, unemployment remains higher than pre-pandemic levels, and the economic burden of unemployment and lost wages continues to weigh on many families and their ability to pay rent and other necessities. This is especially true for the region’s most vulnerable residents who are disproportionately low-income people of color and immigrants (especially undocumented workers). Typical data sources used to report on the state of equity are often lagged by several years. This analysis addresses the current crisis by including recent indicators on the state of equitable recovery in the Bay Area region and across the state. 

Latinx and Black Workers Face Greater Health and Economic Risks Working Essential Jobs During the Pandemic

The Covid-19 pandemic has revealed long-standing racial segregation within the regional workforce. Workers of color are overrepresented among essential occupations—such as grocery store workers, healthcare professionals, bus drivers, and janitors—placing them at far greater risk of exposure to the virus. Workers of color are also disproportionately represented in lower-wage jobs that are less likely to provide benefits like health insurance, paid sick and family leave, and disability insurance. 

Black Workers, Women, and Workers with Less Education Suffered the Greatest Job Losses

The pandemic also brought about significant racial and gender inequities in unemployment as illustrated by research from the California Policy Lab. Women across the state face higher unemployment rates and have disproportionately left the labor force to assume childcare responsibilities. Between March 2020 and February 2021, one third of women in the labor force statewide applied for regular unemployment insurance, compared with 27 percent of men. About 40 percent of California’s Black workers filed for regular unemployment insurance during the pandemic, the highest rate of any group and more than one-and-a-half times the rate of White workers (24 percent). Virtually all Black workers in the state with no post-secondary education filed for regular unemployment insurance (95 percent).

Bay Area PPP Loan Recipients Tend to be Large Employers, Leaving Small Businesses (Especially Those Owned by People of Color) Behind

An Associated Press analysis of Paycheck Protection Program (PPP) recipients across the nation revealed that businesses owned by people of color were last in line to receive PPP loans in 2020 because of barriers accessing the program’s banking institutions, or in some instances, multiple rejections or no response at all from banks. The analysis also showed that White business owners were more likely to secure loans early. Loan recipients in the Bay Area tended to be businesses with many employees, and most small businesses, especially those owned by Black, Latinx, Native American, and mixed-race owners, are single-person businesses with no additional employees. 

Between January 2020 and February 2021, small business revenue across the region took a hit, and many businesses closed their doors permanently. Only Napa County saw an increase in small business revenue, but also a 25 percent drop in the number of businesses open. The decline was most severe in San Francisco, where only about half of businesses were open and revenues declined 56 percent. 

Tenants Behind on Rent are Overwhelmingly Low-Wage Workers of Color Who’ve Suffered Job Losses During the Pandemic

The impact of the economic shutdown has been especially harsh for vulnerable renters. Facing job or income losses, most renters will do what it takes to pay their rent and keep a roof over their head, even if it means accumulating debt for other unpaid bills. Even so, it is inevitable that some of these renters will fall behind on rent without unemployment benefits and strong renter protections in place. People of color and low-income renters have been disproportionately impacted by the recession and are more likely to be behind on rent. 73 percent of those behind on rent earn less than $75,000 per year, and 70 percent are people of color.

The magnitude of the problem is great. An estimated 135,000 Bay Area households—12 percent of renter households are behind on rent. Absent strong worker and renter protections, they could face eviction and indebtedness. Collectively, these renters owe an estimated $747 million in rent debt, an average of over $5,500 per household behind on rent. 

Economic Recovery Begins by Prioritizing Racial and Economic Equity 

In the Bay Area, as elsewhere, the coronavirus and its economic fallout have disproportionately impacted the very same people who were on the economic margins before the pandemic, including Black, Latinx, and Native American residents, low-wage workers, and immigrant communities (especially undocumented workers). For the region to recover and thrive, policymakers must prioritize racial equity. This includes explicitly naming racial equity as a goal, prioritizing investments in historically underserved communities, building community ownership of land and housing, connecting unemployed and low-wage workers with good jobs, and supporting businesses owned by people of color and immigrants. Learn more here.

Data on unemployment filings in California reveals how the Black working class has been hardest hit by the Covid recession, underscoring the need for targeted, race-conscious recovery strategies. 

By Eliza McCullough

While the economic crisis has affected a startling number of workers, workers of color and low-wage workers have been hit the hardest. In California, 8.7 million workers (nearly 45 percent of the labor force) have filed for unemployment insurance (UI) since the start of the pandemic in March 2020. But job displacement has varied dramatically by race and education, as illustrated by the  California Policy Lab’s recent analysis of UI claims data. This post highlights how California’s Black workers are experiencing disproportionate unemployment in the Covid recession due to structural racism embedded in the labor market, and describes policy priorities to ensure an equitable recovery.

About 85 percent of California’s Black workforce has filed for unemployment at some point since March 15th, which is more than double the rate for White, Latinx, and Asian or Pacific Islander workers. This includes workers who filed for either regular UI or Pandemic Unemployment Assistance (PUA), a program created by the CARES Act to extend benefits to workers not usually eligible for regular UI.* 

This unemployment crisis for Black workers in a time of economic contraction threatens to increase already-wide racial inequities in employment. Structural racism embedded in the US labor market has created barriers to employment for Black workers that predate the current recession, ranging from employer bias and discrimination to residential segregation and mass incarceration. Black workers are typically the group hardest hit by economic downturns and are often the last to recover, as evidenced during the Great Recession when Black workers disproportionately suffered from long-term unemployment. The current economic crisis has most negatively impacted the hospitality, retail, and tourism sectors, industries in which Black workers are concentrated due in large part to discriminatory public policies that restricted Black workers’ access to better-paying jobs in other industries (a phenomenon known as “occupational segregation”). As these service sectors have gone through massive lay-offs, Black employees have been subject to the “last hired, first fired” phenomenon in which low-wage positions are the first to be eliminated.

Further disaggregating the data by race and educational attainment, we see that racial inequities are particularly extreme among workers without four-year degrees. Workers of all races with lower education levels have been hardest hit by the Covid recession: More than half of California workers with a high school degree or less (who account for 38 percent of all workers in the state) have filed for unemployment since March 2020 compared to 13 percent of workers with a Bachelor’s degree or higher. But unemployment filings are particularly high for Black workers without post-secondary education: virtually all Black workers with a high school degree or less (99 percent) have filed for unemployment, along with 75 percent of Asian or Pacific Islander workers with this level of education, compared with 52 percent of White workers and 33 percent of Latinx workers.

Black workers are overrepresented in lower education groups due to deep-seated structures of racial exclusion which have created significant barriers to accessing higher education. Residential segregation, perpetuated by exclusionary zoning, has led to the concentration of low-income Black children in schools with inadequate resources, which researchers have found is the key driver of the educational achievement gap. Along with the rising costs of college, these barriers prevent many Black students from accessing post-secondary education. As middle-wage jobs have shrunk in recent decades, Black workers with no higher education have been pushed into low-wage, ‘flexible’ positions with minimal protections. These jobs have been most impacted by wage cuts, diminished hours, and layoffs during the current economic crisis. 

Toward an Equitable Economic Recovery

Black workers and other workers of color are in dire need of increased supports in California and nationwide. Policymakers and business leaders must take action to address immediate economic needs as we enter the eleventh month of the pandemic. At the same time, they must launch forward-thinking, race-conscious strategies that lay the foundation for an equitable recovery and future economy. We recommend the following:

1. Continue expanded UI benefits and provide direct cash support. Additional UI payments under the Federal Pandemic Unemployment Compensation program should be increased back to $600/week (as provided from March to July). Additional and ongoing direct payments, such as the one-time $1,200 payments included in the CARES Act, could also provide a lifeline to unemployed workers and Black workers who are less likely to have adequate savings to fall back on.

2. Prevent evictions and foreclosures and provide debt relief to Covid-impacted households. As unemployed workers are more likely to be behind on rent and California’s Black renters are already paying unaffordable rent, policymakers must extend eviction moratoriums and provide rent debt relief. Limited rental assistance funds should be targeted to the hardest-hit households, particularly those in predominantly Black neighborhoods and neighborhoods of color, to prevent displacement and homelessness.  

3. Protect existing jobs. Multiple cities have passed legislation to ensure that laid-off workers in low-wage sectors can return to their former jobs. For example, Oakland’s Right to Recall policy requires employers in hospitality and travel to give laid-off workers priority when operations resume. Similar policies that protect jobs across sectors should also be implemented at the state and federal levels to ensure low-wage workers do not suffer from long-term joblessness or decreases in income and benefits. 

4. Build worker power. Unions have been shown to reduce racial inequality and provide economic security for Black workers. California policymakers must repeal Prop 22, which misclassifies app-based drivers as independent contractors and prevents their access to basic labor protections. Legislation that empowers workers, such as AB3075 which holds employers more accountable for wage theft, should be strengthened and expanded to ensure that recessions are less catastrophic for low-wage workers. Finally, California must increase funding for enforcement of labor and employment laws while also making state financial support for businesses conditional based on compliance with those laws.

5. Create high-quality public jobs accessible to unemployed workers. A Federal Job Guarantee would ensure everyone has access to living-wage jobs while meeting the physical and care infrastructure needs of disinvested communities. Policymakers should take immediate steps to support unemployed workers through direct job creation in crucial sectors, like the Public Health Jobs Corp program proposed by President-elect Biden. 

6. Expand access to upskilling opportunities and stable career pathways. Policymakers should proactively connect unemployed workers to good jobs by investing in workforce development, including higher education and training programs that reach Black workers, and enacting community workforce agreements on state-funded projects. Programs such as California’s Breaking Barriers to Employment Initiative, which funds workforce development programs for those with barriers to employment, should be strengthened and expanded while business leaders should commit to advancing equitable employment practices and offering good job opportunities to workers hard-hit by the pandemic.
   

    

*The California Employment Development Department defines workforce as all individuals residing in California who worked at least one hour per month for a wage or salary, were self-employed, or worked at least 15 unpaid hours per month in a family business. Those who were on vacation or on other kinds of leave were also included. 

Our analysis of the demographics of the essential workforce in Santa Clara County reveals that the workers on the frontlines of the pandemic are disproportionately Latinx, Filipinx, Vietnamese, and women of color, and face economic vulnerabilities.

The coronavirus is disproportionately impacting populations, locally and nationally, including those who are low-income, Black and Latinx, and people with underlying health conditions. In Santa Clara County, Latinx residents account for 27 percent of the population but 38 percent of those who tested positive for the virus, according to county data. A recent study showed that early deaths from COVID-19 hit residents in four East San Jose zip codes, which are largely Latinx, particularly hard. One-third of early COVID-19 deaths in the county occurred in these four zip codes alone. These are the neighborhoods where residents grapple with high poverty and where local leaders have gone on record citing the lack of protective gear, health insurance, and inadequate health care for essential workers.   

Our analysis of the demographics of frontline workforce in Santa Clara County reveals that these workers are more likely to live in or near poverty, pay too much for housing, and lack health insurance. The data in this post draws from our Profile of Frontline Workers in the Bay Area, based on data from the 2014-2018 American Community Survey provided by the Center for Economic and Policy Research. You can access the data for Santa Clara County here.

There are 245,500 essential workers in Santa Clara County — one-quarter of all county workers — spread across 11 industries, largely in health care, manufacturing, construction, grocery, and childcare and social services.

Latinx workers account for nearly one quarter of the workforce in Santa Clara County (24 percent) but are overrepresented in frontline industries (36 percent). Latinx workers are heavily concentrated in agriculture (77 percent), building cleaning services and waste management (76 percent), construction (63 percent), and domestic work (58 percent). This trend was similar regionwide, but Latinx overrepresentation in these industries was higher in Santa Clara County.

Although not overrepresented in essential industries overall, Asian or Pacific Islander (API) and Black workers are concentrated in specific frontline industries in the county. API workers account for 37 of all workers in the county but are overrepresented in manufacturing (45 percent) and health care (44 percent). API workers regionwide are similarly concentrated in health care and manufacturing, as well as in the trucking, warehouse, and postal service industry. Black workers account for 3 percent of workers in the county but are concentrated in the public transit (7 percent) and trucking, warehouse, and postal service (6 percent) industries, which is similar to regional trends.

White workers are not concentrated in essential industries overall but in utilities specifically, an industry with higher median earnings and a higher share of college educated workers, compared with other essential industries. This mirrors regional trends.

Immigrants account for about half (48 percent) of the workforce in Santa Clara County and a comparable share of the essential workforce (49 percent). Within specific industries however, including building cleaning services and waste management (67 percent) and domestic work (67 percent), immigrants account for the majority of workers. This is also the case, but to a lesser degree, in the agricultural (55 percent) and construction (55 percent) industries. At the regional level, immigrants account for well below half (37 percent) of the workforce and are concentrated in these and several other essential industries.

Women of color in the county account for a larger share of the essential workforce (37 percent) than the workforce overall (30 percent). This was also the case for the region overall. Specifically, Asian or Pacific Islander women account for 16 percent of all Santa Clara County workers but 31 percent of health-care workers, 26 percent of childcare and social services workers, and 21 percent of workers in select manufacturing industries. Latina workers account for 11 percent of the county’s workforce, but 43 percent of building cleaning and waste management workers, 27 percent of childcare and social services workers, 24 percent of agricultural workers, and 20 percent of workers in the grocery industry. Black or African American women account for only 1 percent of the workforce in Santa Clara County, but triple the share in the childcare and social services (3 percent) and health care (3 percent) industries. 

“I am in greater demand, spread thin, stressed out. I have been working, as an essential worker. My young adult children have not and require financial assistance.” 

– Nurse, Los Gatos, Santa Clara County

 

Latino men, who account for 14 percent of the county’s workforce are also heavily concentrated in frontline industries: 62 percent of construction workers, 52 percent of agricultural workers, 37 percent of trucking, warehouse, and postal service workers, 33 percent of building cleaning services and waste management workers, and 22 percent of workers in the grocery industry. These county trends reflect trends at the regional level. 

As a group, Asian workers in Santa Clara County are underrepresented in frontline industries. This is the case regionally, although to a lesser degree. Within the county’s Asian population, Vietnamese and Filipinx workers are overrepresented in most essential industries. Similar trends exist Bay Area wide for Filipinx workers but not Vietnamese workers. Santa Clara County Vietnamese workers account for 18 percent of Asian workers in the county but are overrepresented among these workers in several essential industries: construction (38 percent); childcare and social services (29 percent); trucking, warehouse, and postal service (26 percent); utilities (26 percent); manufacturing (25 percent); grocery (24 percent); and others. Santa Clara County Filipinx workers account for 15 percent of Asian workers in the county but are overrepresented among Asian workers in nearly every industry except for construction (12 percent). This was generally the case for Filipinx workers regionwide as well.

Chinese workers account for 26 percent of all Asian workers in the county but are underrepresented among Asian workers in essential industries overall. Chinese workers are heavily concentrated among Asian agricultural workers (42 percent), however. At the regional level, Chinese workers are more likely to be concentrated in construction than agriculture. Korean workers are 4 percent of Asian workers in Santa Clara County but are underrepresented among Asian workers in essential industries. Korean workers account for 9 percent of Asian workers in construction, a higher share than regionwide.

Indian workers account for over one-quarter of the Asian workforce in Santa Clara County, but are generally not overrepresented in essential industries (and therefore not included in the chart above).

Santa Clara County essential workers are more economically and socially vulnerable than workers overall. They are more likely to lack college degrees, rent rather than own their home, pay more than they can afford in rent, and work part time. They are also more likely to care for a senior at home, live in or near poverty, and lack English proficiency, health insurance, and internet access. Sixteen percent of all frontline workers live below 200 percent of the poverty level (about $48,000 for a family of four) compared with 12 percent of all workers. Frontline workers also earn less: These workers have median earnings of $55,935 compared with $79,076 across all industries. These figures largely match regional trends. 

Essential workers are more likely to lack health insurance (8 percent) compared with workers overall (6 percent), but even more stark are the uninsured rates within frontline industries. Workers that are particularly vulnerable include those in the agricultural, construction, building cleaning services and waste management, and domestic work industries, where the uninsured rates are as high as 21 percent (agricultural industry). Regionwide, these same industries have the highest uninsured rates. 

For frontline workers to be healthy and economically secure they need proper protective gear and testing, paid sick leave and affordable health care, living wages, childcare and elder care, and secure housing. Santa Clara County is now offering free COVID-19 testing for all residents 18 years of age and older regardless of symptoms, which is a step in the right direction. South Bay representative Assemblymember Ash Kalra and state and local leaders have introduced two proposals to bolster workers’ rights and protect working families:

• AB 3216 would provide emergency paid sick leave, expand access to family leave, and create a right of recall for workers laid off in industries impacted by COVID-19.
• A partial income replacement program for undocumented workers who experienced COVID-19 job losses and were excluded from state and federal unemployment benefits. This proposal is supported by a state coalition of worker and immigrant rights organizations with the Safety Net for All coalition.

Learn more about actions that employers and state and local government should take to support frontline workers and provide for the common good.