Minority Business Stimulus Contracts Still Lag
COLUMBUS, OH - The federal stimulus and economic recovery continue to have lower impact on the communities most in need, says a report released by the Kirwan Institute for the Study of Race and Ethnicity at The Ohio State University. The Race-Recovery Index notes rising August and one-year unemployment rates for Black Americans, coupled with a lower share of cumulative federal Recovery Act contract awards through August for both Black- and Latino-owned businesses. The report bases its analysis on information from the U.S. Bureau of Labor Statistics and the Federal Procurement Data System.
The report notes that in August, Black unemployment rates rose by 0.7 of a percentage point, to the highest rate since April, while Latino and White unemployment remained relatively constant from July to August. Over the past year (since August 2009), Black unemployment has risen by 8.5 percent while Latino and White unemployment have fallen by 6.3 and 3.2 percent respectively.
The report also shows that in August, and also cumulatively to date, the total number of federal Recovery Act contracts as well as the dollar value of such contracts received by Black- and Latino-owned businesses is below their overall U.S. market share. Through August 2010, Black-owned businesses, which represent 7.1 percent of all U.S. businesses, have received 3.4 percent of federal ARRA contracts and 2.6 percent of federal ARRA contract value. During the same period, Latino-owned businesses, which represent 8.3 percent of all U.S. businesses, received 4.9 percent of federal ARRA contracts and 4.1 percent of contract value.
The Race-Recovery Index tracks how the federal stimulus and economic recovery are impacting communities most in need. It is produced monthly by the Kirwan Institute for the Study of Race and Ethnicity, a center for interdisciplinary research at The Ohio State University. The Kirwan Institute partners with people, communities, and institutions worldwide to think about, talk about, and act on race in ways that create and expand opportunity for all. To view the full report, including charts, see the September 2010 Race-Recovery Index.