Dec 22, 2024 Story by: Publisher
Progress for Black employees at major U.S. corporations has stagnated.
The proportion of Black workers in the S&P 100 workforce dropped to 16.8% in 2023, down from a peak of 17% in 2021. While this change may seem minor, it marks a significant reversal. Black employees have effectively lost the gains made since 2020, a year when many companies pledged to address racial inequities in response to George Floyd’s murder.
This finding stems from an exclusive Bloomberg News analysis of race and gender data provided by 84 leading U.S. companies to the Equal Employment Opportunity Commission. The data revealed that most of these companies saw a decline in Black managerial representation after two years of increases.
“The post-George Floyd momentum that we got was a huge moment historically,” remarked Lisa Simon, Chief Economist at Revelio Labs, a workplace data consultancy. “It only took a random year of less enthusiasm to take that away again.”
Declining Representation
In 2023, the analyzed companies employed approximately 8.9 million U.S. workers, with half identifying as people of color. Yet, the data shows that Black workers began leaving these workplaces in 2022, with the trend intensifying in 2023. Over the last year, corporations reduced their total workforce by 127,418 employees, and 26% of those affected were Black — a disproportionate figure compared to their share of the workforce.
During the workforce expansions of 2021, people of color accounted for 90% of net new hires, with nearly a quarter being Black. But companies like American Express, PayPal, Capital One, Verizon, and McDonald’s reported some of the steepest declines in Black employees and managers. Meta and McDonald’s also saw significant drops in Black managerial representation. These companies either declined to comment or did not respond to requests for comments.
In executive roles, more than half of the companies saw a decrease in Black representation. However, Broadcom Inc. stood out as the only company with no Black executives in 2023, a reduction from six companies in 2020. Broadcom did not respond to requests for comment.
Backlash and Workforce Cuts
Experts attribute these setbacks to a combination of factors, including a growing backlash against diversity, equity, and inclusion (DEI) programs. These initiatives, which gained prominence following the 2020 Black Lives Matter protests, played a critical role in hiring and retaining Black employees.
However, practices like “last in, first out” layoffs disproportionately impacted Black employees hired in recent years. Return-to-office mandates also created challenges, as remote work enabled companies to recruit from more diverse regions.
The rise of the anti-DEI movement, spurred by conservative figures like Edward Blum and Stephen Miller, has also contributed to these trends. Critics argue that DEI efforts distract from business priorities, leading some companies, including Walmart and Toyota, to scale back their diversity initiatives.
“The decline in the share of Black workers in the S&P 100 can be attributed to companies rolling back their DEI policies with regard to hiring and promotions,” said Renu Mukherjee of the Manhattan Institute. Mukherjee highlighted the Supreme Court’s 2023 decision to ban affirmative action in college admissions, which anti-DEI advocates are using to challenge employment programs.
Challenges in Hiring
Despite DEI setbacks, some companies maintain their commitment to diversity. But hiring trends suggest a reduced focus on Black representation, especially under the incoming Trump administration, which has signaled intentions to remove diversity requirements for federal contractors.
Debbie Dyson, CEO of OneTen, noted that demand for services helping companies recruit Black workers dwindled after 2022. “Looking back over the last four years, you can identify the things that supported the hiring of Black people and then the things that started to work against it,” she said.
Broader Workforce Trends
For the first time, White workers lost their majority in the S&P 100 workforce in 2023, falling to 49.9%, down from 53% in 2020. While White men in leadership roles experienced declines, they still hold a significant share of executive and managerial positions. Black and Hispanic employees remain overrepresented in entry-level roles.
Economic uncertainty and biases also play a role. “When labor markets become tighter, discrimination becomes greater,” said Lauren Rivera, a professor at Northwestern University. She emphasized that subjective factors, such as personal rapport, often influence hiring decisions.
For workers like Tenisha Bogan and Felicia Ann Rose Enuha, these challenges are personal. After losing their jobs, both women encountered obstacles in finding new opportunities, reflecting broader systemic issues.
“Unfortunately, in our country, race is a very uncomfortable construct,” Enuha said. “And that has real-world consequences.” Source: Bloomberg
