During periods of economic growth and expansion, the unemployment and underemployment rates for African-Americans and Latinos are consistently higher than those for whites. Current statistics show that the Great Recession offers no exception to this rule. As of October 2009, 23.8 percent of blacks and 25.1 percent of Latinos were unemployed or underemployed, while nearly 14 percent of whites fell into the same category. Indeed, Americans of color are experiencing levels of unemployment rival to the Great Depression of 1929.

The Great Recession has affected Americans of every race and ethnicity, but especially those groups already economically vulnerable. Thirty-six percent of black families fell under the poverty line in 2009, up from 33 percent the year before. The loss of employment and falling income led to a reduction in Americans covered by health insurance. Plans for higher education were put on hold as families could not afford the costs associated with attendance or the burden of student loans. All racial and ethnic groups saw large declines in income in 2008, with African-American households falling 2.8 percent and Latino households declining 5.6 percent from 2007. Economic recessions are at times portrayed as short-term events. However, they can and do have long-term, harmful effects on minorities. What can be done to address these effects? The Illinois General Assembly has put forward several solutions. The House is considering a resolution (HR0069) that urges legislation prohibiting businesses that receive federal emergency economic assistance funds from laying off employees during the recession. The General Assembly passed a resolution (HR0020) that calls for the allocation of economic stimulus funds to create a youth employment program. Another resolution is under consideration (SR0082) that calls for the inclusion of a short-term housing stimulus in the economic stimulus package. Other options include the expansion, rather than reduction, of spending on education programs so that the unemployed can be better prepared to work at available jobs when they reappear. Related to this is expanding programs such as AmeriCorps that encourage education and skills enhancement, public service, and education debt forgiveness.

The Great Recession poses some formidable challenges to policymakers. It will test our nation’s values and priorities. Such an economic crisis will not let us wait for the market to correct itself. Rather, we will need to weight the pros and cons of policies and proposals that can be applied quickly to help stimulate economic growth and help reduce racial and ethnic disparities.