New report tackles ways to address inequalities in Charlotte’s labor force
Charlotte leaders have been trying to create more ways for residents to climb the city’s socioeconomic ladder for nearly a decade, when Harvard University researchers ranked it last among U.S. metros for economic mobility in 2014.
One possible key to building economic mobility? Friends in high places.
That’s the argument of a new racial equity report from the Charlotte Regional Business Alliance, which examines factors shaping career and economic outcomes for workers of color in Charlotte.
The report, published Thursday, says that getting a degree or acquiring new skills isn’t always enough to connect historically disadvantaged groups of workers with better, higher-paying job opportunities.
Minority employees also can run into barriers when it comes to “social capital,” researchers wrote. They defined that as the strength of an individual’s social network and community, and an important way of accessing economic opportunity.
“Powerful social networks have been linked to better outcomes for those seeking to climb the economic ladder,” the report said.
Here are a few other things the report found about race and the workforce in Charlotte.
Hurdles to a better job
For many minority workers, finding a better and higher-paying job isn’t as simple as acquiring more credentials, the report said.
Other potential obstacles to higher-paid positions include employment discrimination, language barriers and the cost of childcare.
When it comes to social capital, the report said that Charlotte could create more opportunities for minority workers by cultivating social connections between low- and high-income residents.
Research organization Opportunity Insights found that has a greater influence on economic mobility than any other factor its studied to date, the report said.
“Developing friendships with those of high-income not only provides open doors to job opportunities, it allows for knowledge sharing and an expansion of what someone perceives as possible,” the report stated.
Minority workers over-represented in low-paying jobs
Occupational segregation is another obstacle impacting economic opportunities for workers of color in Charlotte, the report said. That refers to the fact that minority workers make up a disproportionate amount of some low-paying jobs in the region.
Researchers found that, in sectors with high minority representation like healthcare and manufacturing, Black workers make up an overwhelming percentage of employees in low-wage roles in the Charlotte region.
For example, 46% of home health aides in the region are Black. That job has one of the lowest entry-level wages in Charlotte, at $19,900 annually.
But only 10% of nurse anesthetists in the region are Black. That role has an average salary of more than $100,000 a year.
“This impedes career achievement, better earnings and wealth,” researchers wrote. “Blacks and Hispanics are highly represented in low-paying jobs with lower entry-level wages compared to jobs with slightly better entry-level wages.”
Certain career programs could help
The report suggested improved hiring practices, networking programs and a centralized database of local racial equity resources as possible ways to address inequalities in Charlotte’s labor force.
Workforce development programs that include resources for building social capital will be more effective, researchers wrote.
The report pointed to local programs like Bridges to Baccalaureate, which trains students from underrepresented groups at local colleges for careers in the biomedical field. It also cited She Built This City, which prepares women in Charlotte for construction and manufacturing roles.
Those organizations are good examples of how local groups can address occupational segregation, researchers wrote.
“It is important that organizations with influence make specific programs to help overcome the inequities in social networks,” the report said. “Business organizations like the CLT Alliance have a key role to play in helping to develop networking opportunities for young people of color.”
This story was originally published February 17, 2023 at 8:45 AM.
