Narrative: II. a. 1. B.

Washington is home to a diverse population. The Great Recession and the COVID-19 pandemic have tested the resilience of the state’s workers, employers, and communities. Washington as a whole has recovered from both of these socioeconomic setbacks, but that recovery has not been equitable. Race, ethnicity, disability status, sex, location, education levels, and other characteristics all have an impact on a Washington resident’s ability to find and keep a job. Moving out of the COVID-19 pandemic, Washington has the opportunity to mitigate the racism, sexism, “ableism” and other discrimination that exists within its systems. But to do so data must be presented in a way that highlights these differences so they can be better understood. This chapter presents data from the American Community Survey[6] disaggregated to better capture the population’s intersecting identities.

[6] The American Community Survey (ACS) is an annual demographics survey program conducted by the U.S. Census Bureau; it combines monthly surveys into an aggregate annual dataset reducing the effect of the pandemic during 2020. Some populations are too small to include and are not shown.

Unemployment Rate by Race

The unemployment rate for all races peaked around the Great Recession and then generally declined until COVID-19 hit the economy like a tsunami.

The unemployment rates varied by race, with a recession era high of 23% for American Indian/Alaska Natives in 2010 compared to 8% for Asians the same year. Black people also had higher unemployment (17%) during that year, compared to 10% unemployment among whites. Similar to the post-recession recovery seen around 2010, most races showed unemployment decreases in 2021 while moving out of the worst of the pandemic. Unfortunately, the Black unemployment rate increased two percentage points. This increase makes Black unemployment one of the highest rates for any race at 10%; American Indian/Alaska Natives also experienced 10% unemployment. People of two or more races (multiracial) had 8% unemployment and whites were at 6%. The lowest unemployment rate was 4% for Asians.

Unemployment by Race and Sex

Unemployment varies by sex within each race. The accompanying chart  shows the unemployment rate for men and women of each race in 2021. For most races men have a lower unemployment rate than women. However, this pattern is reversed for Black men who have a 4-percentage point higher unemployment rate than Black women. The unemployment rate for Black men grew from 7% in 2019 to 12% in 2021. National data also show that there are high rates of Black men who are not working; either incarcerated or out of the labor force for another reason. The racial gap would likely increase if those populations were accounted for. A 2021 Brooking’s report concludes that the causes of higher unemployment for Black men are discrimination and social isolation that lead to lower education, skills, and work experience. The relatively high percentage of American Black men who are incarcerated also leads to lower employment in the long run.[7]
[7]https://www.brookings.edu/articles/why-are-employment-rates-so-low-among-black-men/

Unemployment by Sex

Unemployment rate differences between Washington’s men and women are less pronounced than with race or ethnicity. Men had higher unemployment during the Great Recession, but both sexes’ unemployment rate decreased during the mid-to-late 2010s. The COVID-19 pandemic caused a surge in unemployment for both men and women in 2020.However, men recovered slightly in 2021 while women’s unemployment continued to rise.

Unemployment Rate by Sex and Educational Attainment

The rate of unemployment between women and men varied at least in part because of differences in education levels. Overall, people with lower levels of education

 experience higher unemployment. As education levels rise so do employment opportunities. However, the gap between the sexes also varies by a person’s level of education; as the education level increases the gap between men and women’s unemployment rate decreases. In 2021, women with less than a high school diploma had an unemployment rate double the rate of men with the same level of education. However, women with a bachelor’s degree or higher had nearly the same unemployment rate as men with the same education level. A report from Pew Research shows that during the COVID-19 pandemic more women than men left the labor force, in part to take care of children because of pandemic-induced school and daycare closures. This further widened difference in employment rates between women and men. Women are disproportionally employed in occupations that had sharp cuts during the start of the pandemic - those that require them to work in-person, like food preparation and health care.[8]

[8]https://www.pewresearch.org/short-reads/2022/01/14/some-gender-disparities-widened-in-the-u-s-workforce-during-the-pandemic/

Unemployment Rate by Disability Status

According to the U.S. Centers for Disease Control and Prevention (CDC) one in four Washington adults   has a disability. A disability can be loss of vision or hearing, mobility issues, problems with cognition, or not being able to live independently[9]. Many of those with a disability are not in the workforce; but the American Community Survey shows that about 7% of the workforce identifies as having a disability. People with a disability who are in the workforce show far higher rates of unemployment than those without a disability. In 2021, 12% of people with a disability were unemployed, compared to 5% of people without a disability.

[9]https://www.cdc.gov/ncbddd/disabilityandhealth/impacts/washington.html

Unemployment by Ethnicity

Washington’s Hispanic population has increased over the past few decades, doubling in the 1990s and growing to over 13% in 2020[10]. People of Hispanic origin can be of any race; the chart below shows the percentage of each race that is either Hispanic or Not Hispanic. There has been some debate over who is Hispanic and who is not. This is a shifting category that is not always defined the same way. The 2020 census grouped Hispanic, Latino, or Spanish ethnicity origin under the umbrella term “Hispanic.” A person was also added to the category “Hispanic” if they wrote in a country of origin in Latin or Central America for the U.S. Census, even if they did not choose Hispanic as their ethnicity or race.

The unemployment rate for Hispanic people in Washington has ranged between 5% and 14% in the last 15 years, and during that time unemployment has always been higher for Hispanics than for non-Hispanics. The difference between the unemployment rate for these two populations was greatest during the Great Recession and has since narrowed, ending in a gap of just one percentage point between 2018 and 2021. 

[10]https://ofm.wa.gov/washington-data-research/statewide-data/washington-trends/population-changes/population-hispaniclatino-origin

Unemployment Rate by Geographic Location (Rural/Urban)

Geographic differences show less variance in high or low unemployment than other factors we have examined. In 2021 there was a smaller than 2 percentage point difference between urban and rural and east and west. Over the last decade unemployment rates have consistently been lowest in the urban west, where the rate fell from 8% in 2012 to 4% in 2018 & 2019. The unemployment rate in the urban west rose during COVID, up 2 percentage points to 6% in 2020 & 2021, still lower than all other geographic areas in that time period. The rural west has tended to have the highest unemployment over the last decade, ranging from 11% in 2012 to 6% in 2018 & 2019. Both the rural and urban east mostly stay between the lows of the urban west and the highs of the rural west, with one obvious difference:  the rural east hit a higher unemployment rate in 2012 (11%) compared to the other groups. There have been a few times when the rural east has exceeded the unemployment rate of the rural west, but by mere tenths of a percentage.

Unemployment Rate by Geographic Location and Educational Attainment

Higher education comes with higher employment rates. Post-high school education and training are increasingly important in securing a living-wage job. Unemployment rates are lowest for those with more education and training.  Across the state in 2021 there is not much difference between those with a high school diploma, some college, or a college degree. However, there are substantial differences for those with less than a high school education. The rural west shows a 15% unemployment rate for those with less than a high school diploma, compared to 6% for the same population in the urban west.

Educational Attainment in Washington

The Washington Student Achievement Council set a goal that 70% of adults between the ages of 25-44 will have a post-secondary credential by 2023. The state has not met that goal, but the percentage of people with a bachelor’s degree or higher has increased over the past decade. Since 2008 the percentage of people with a bachelor’s degree or higher has increased from 32% to 40% (2021). The percentage of people whose highest education is some college, or an associate degree has decreased from 37% in 2008 to 31% in 2021. The percentage of people whose highest education is a high school diploma or equivalent has remained fairly steady, between 21% and 23% since 2008. The percentage of people who have less than a high school diploma ranges from 8% to 10%, with the 8% seen only in the last few years.

Of course, educational attainment is not the same for every demographic. A lower percentage of Black Washingtonians have earned a bachelor’s degree or higher. Although this percentage grew between 2008 and 2021, there is still a gap between Blacks and other races.

Educational Attainment by Race

In 2021, Washingtonians of Asian descent had the highest percentage earning a bachelor’s degree or higher (64%); followed by whites (40%), people of two or more races (33%), Black people (28%), and American Indians (17%.) Black and Asian Washington residents have the same percentage who have less than a high school diploma, 7% for each of these racial categories. Some 15% of American Indians did not earn a high school diploma, twice the percentage of Blacks and Asians. American Indians also had the largest percentage of people whose highest level of education was a high school diploma or equivalent (32%). 

Educational Attainment by Hispanic Ethnicity

College enrollment of Hispanics across the nation has increased from under 1.5 million in 2008 to over 2.4 million in 2021.[11] In addition, a growing number of Hispanics have reached higher educational attainment since 2008, this is true nationwide and in Washington. Although a gap persists between Hispanic and non-Hispanic populations, there has been a dramatic change in the percentage of Hispanics who have less than a high school diploma. The percent of Hispanic people who have less than a high school diploma has shrunk from 41% in 2008 to 27% in 2021. The percentage of Hispanic people who have earned a bachelor’s degree or higher has increased from 11% to 20% in the same time frame.

[11]https://www.census.gov/library/stories/2023/05/significant-educational-strides-young-hispanic-population.html

Educational Attainment by Sex

The educational attainment of men and women in Washington are comparable. A slightly higher percentage of women have earned a bachelor’s degree or higher or have some college or an associate degree. The largest difference between the sexes is the percentage of people who have earned a high school diploma or equivalent as their highest degree: There is a five-percentage point difference, with men higher at 24% and women at 19%.

A survey conducted by PEW research showed that men more often point to a personal choice as for why they did not get a bachelor’s degree; a third say a major reason they did not complete college is that they did not want to, a quarter say a bachelor’s degree isn’t needed for the job or career they want.[12]

[12]https://www.pewresearch.org/short-reads/2021/11/08/whats-behind-the-growing-gap-between-men-and-women-in-college-completion/

Educational Attainment by Hispanic Ethnicity and Sex

As discussed previously in this report Hispanic people have lower educational attainment. The differences in educational attainment by ethnicity are compounded by sex.

24% of Hispanic women have earned a bachelor’s degree or higher, compared to 17% of Hispanic men. There is a smaller difference between non-Hispanic women (45%) and non-Hispanic men (41%). 

30% of Hispanic men have less than a high school diploma, 5 percentage points higher than Hispanic females. Non-Hispanic men and women do not show that notable of a difference.

Educational Attainment by Disability

The percentage of people with a disability who have earned a bachelor’s degree or higher is less than half of those with no disability; only 20% of people with a disability have earned a bachelor’s degree or higher compared to 43% of people without a disability. 37% of people with a disability have some college or an associate degree. Around 1 in 7 people with a disability have not earned a high school diploma or equivalent.

College enrollment is growing for students with disabilities; however, their rates of completion are low. Students have a harder time adjusting socially and academically to a college environment; institutional policies (course requirements, attendance policies, etc.) are structured around the expectations of past college students. These structural inequities add to the difficulty in integration for student groups (like those with disabilities) who have historically not been represented on college campuses. [13]

[13] Barriers to Bachelor’s Degree Completion among College Students with a Disability. https://doi.org/10.1177/0731121420908896

Median Earnings in Washington

Median earnings are a good way to analyze and compare differences; it is the divide where half of people earn more, and half earn less. In Washington, median earnings increased from $48,335 in 2012 to $58,886 in 2021.[14]

[14] Inflation adjusted 2023 dollars.

Median Earnings by Race

Racial disparities in earnings are increasing. While Asian and white people’s earnings have increased, Black, American Indian, and multiracial worker’s earnings have stagnated. Asians have the highest median earnings in 2021 at $80,466, followed by whites at $64,265. The other three races’ median earnings are between $40,000 and $50,000. For American Indians the increase in median earnings was only 7% between 2012 and 2021, compared to 48% for Asians and 27% for whites. 

Median Earnings by Sex

Men’s median earnings have been higher than women’s median earnings during the last decade; women’s median earnings were around 70% of men’s. In 2012 women’s median earnings were $39,486 compared to men’s $59,068. In 2021 women’s median earnings were $48,692 compared to men’s at $70,190. Additionally, the pay gap on a nationwide level has not changed very much over the last two decades, but when looking at younger earners the gap has narrowed. Educational attainment, occupational segregation, and work experience have historically explained the pay gap, but women have made gains in each of these dimensions. In a survey from Pew Research 61% of women say a major reason for the gap is that employers treat women differently.[15]

[15]https://www.pewresearch.org/short-reads/2023/03/01/gender-pay-gap-facts/

Median Earnings by Sex and Race

There are also differences in median earnings by sex in each race category. In 2021, within each race, men had higher median earnings than women. The most profound divergence in one race is between Asian men’s median earnings of $106,415 and $60,544 for Asian women.  White males out earned their female counterparts by nearly $25,000 ($76,874 versus $52,164). The smallest difference was $52,061 for Black males, compared to $43,867 for Black females – only a $7,000 difference.

Median Earnings by Ethnicity

The gap in median earnings between Hispanic and non-Hispanic people exceeded $20,000 in 2021: Hispanic median earnings were $40,622 and non-Hispanic $64,301. The gap between Hispanic men and women is not as pronounced as the gap between the sexes of non-Hispanic people. Hispanic men have median earnings that are about $11,000 higher than Hispanic women. Meanwhile, non-Hispanic men out earned women by $25,000.

Median Earnings by Disability Status

People with a disability have median earnings of $46,425 compared to $60,277 for people without a disability. Some of this difference may be explained by the fact that there is a smaller percentage of the disabled population that has earned a bachelor’s degree or higher. For those ages 25-65, 20% of those with a disability have earned a bachelor’s compared to 43% of people without a disability. However, people without a disability have higher median earnings at every level of educational attainment than people with a disability.

Median Earnings by Geographic Location

The urban west has the highest median earnings at $68,100, followed by the rural west at $51,754. The eastside’s urban and rural communities are lower at median earnings of $46,233 and $41,433 respectively.

In 2021, in each geographic area, men have higher median earnings than women.

There are two groups that are outliers: At the high end, men in the urban west have median earnings over $80,000, while women in the rural east are under $35,000. These two areas also have the highest disparity in earnings for men and women; in the urban west women earn .69 cents on a man’s dollar, and in the rural east it is .67 cents. In the rural west women earn $44,950 compared to men’s $58,143, or .77 cents per dollar. In the urban east women earn $40,055 to men’s $53,578 (.75 per dollar).

Median Earnings by Educational Attainment

In 2021, people who had earned a bachelor’s degree or higher have the highest median earnings, at $98,581. People with some college or an associate degree have median earnings of $57,888, followed by people with a high school diploma or equivalent at $47,728. With the lowest median earnings, people with less than a high school diploma have median earnings of $39,835.

Median Earnings by Educational Attainment and Sex

Men’s median earnings are higher than women’s at every level of educational attainment. The difference in median earnings ranges from $15,000 for those with less than a high school diploma to $35,000 for those with a bachelor's degree or higher.

Men with less than a high school diploma have median earnings that are higher than women with a high school diploma. Men with a high school diploma have median earnings higher than women with some college or an associate degree.

According to the U.S. Bureau of Labor Statistics (BLS) men with bachelor’s degrees earn approximately $900,000 more in median lifetime earnings than high school graduates (1.5 million more for graduate degrees.) Women with bachelor’s degrees earn $630,000 more than women with high school degrees (1.1 million more for graduate degrees). These findings confirm the significant long-term economic benefits associated with college education.[16]

[16]https://www.ssa.gov/policy/docs/research-summaries/education-earnings.html

Median Earnings by Education and Race

The range of median earnings by educational attainment is different for each race for different levels of educational attainment.

American Indian/Alaska Natives have the lowest median earnings ($29,122) for those whose highest level of education is less than a high school diploma. Earning a few thousand dollars more are black people ($32,137) and Asians ($34,676). There is another gap to multiracial ($39,566) and another to white people ($46,486).

Whites have the highest median earnings for those whose highest education is a high school diploma or equivalent – at $52,036.  Asians, American Indian/Alaska Natives, multiracial people and Blacks have median earnings between $40,000 and $45,000.

There are continuing differences between races when looking at those who have some college or an associate degree. Whites make $58,634 compared to blacks at $46,782 – a 20% difference.  Both multiracial people and Asians have median earnings of around $52,000. American Indians with an associate degree or some college earn around $50,000.

The most obvious differences come with those who have earned a bachelor’s degree or higher. Asians with a BA+ earn $125,688, whites $96,440, and multiracial people earn $92,262. Blacks and American Indians with a BA+ have the lowest median earnings at around $80,000.

Conclusion

Washington’s economy is strong on average, with considerable differences among geographic areas and different industries.  This chapter shows that considerable differences also exist between many demographics such as gender, race, ethnicity, and educational attainment. The complex relationship and interdependencies of these disparities drive the guiding principles and strategic priorities of the Talent and Prosperity for All four-year strategic plan.

6/6 Sections in Correction Updates Follow:

Barrier Populations

Justice involved (also known as “ex-offenders)

Washington’s corrections system creates significant barriers to employment for justice involved citizens. Justice involved people, with the help of meaningful employment, can fully integrate back into their communities. There are currently around 13,000 people in prison in Washington.  There are around 400 in the reentry center, 40 in the community parenting alternative, and 400 in graduated reentry programs. 94% of individuals in confinement are men, 45% are non-white, and the average age is 41. Around half of those individuals are serving fewer than 10 years. There are another 13,000 justice involved people on active supervision. In 2016 Governor Inslee directed state agencies to address known barriers to successful reentry. Reentry programs can help people overcome bias from employers, which often excludes them from entering the workforce. Other barriers include financial instability, lack of identification, and insufficient training and work experience.

Homeless

The most recent point-in-time count data showed that Washington’s homeless population grew by 11% between 2022 and 2023. Housing prices have increased and the temporary federal assistance from COVID has decreased. The vacancy rate in Washington is 3.7%, below the 7% of a balanced market. There is a housing unit shortfall of around 100,000 units and another 300,000+ households are very cost burdened. The shortfall in housing grows each year.  (https://washingtonstatestandard.com/2024/03/27/housing-and-homelessness-in-washington-by-the-numbers/) Young people who do not have a high school degree (or equivalent) have a much higher risk of homelessness than those who have earned a degree and 15% of youth experience homelessness within 12 months of exiting a public system. (https://www.americanprogress.org/article/fact-sheet-addressing-employment-barriers-for-young-adults-leaving-incarceration/)

Individuals facing cultural barriers, migrant and seasonal farmworkers, or English Language Learners (ELL)

According to the Department of Social and Health Services, “Washington is home to a very large, diverse and dynamic refugee and immigrant community and has historically ranked as one of the top 10 resettlement states in the United States.” Between October 2022 and September 2023 nearly 15,000 refugees applied for DSHS services. In 2021, 21% of households spoke a language other than English at home. (https://ofm.wa.gov/washington-data-research/statewide-data/washington-trends/social-economic-conditions/language-spoken-home) The percent of the population age 5 and above living in households where English is spoken less than "very well" has risen from 2.7% in 1980 to 7.9% in 2021. (https://ofm.wa.gov/washington-data-research/statewide-data/washington-trends/social-economic-conditions/language-spoken-home) Washington relies on our large immigrant population; about 19% of our workers are foreign-born. There are nearly 750,000 immigrants in the labor force largely in the agricultural and janitorial fields; immigrants also make up a large percental of software developers (51%) and Physical scientists (47%). (https://map.americanimmigrationcouncil.org/locations/washington/#:~:text=Washington%E2%80%94one%20of%20the%20highest,its%20workers%20are%20foreign%2Dborn.)

Youth who are in or have aged out of foster care

Washington has about 8,000 children living in out-of-home care, a number that has been decreasing in recent years. Youth aging out of the foster care system have lower wages and less employment than other young people. (Courtney et al. 2001; Hook and Courtney 2011; Dworsky 2005; Goerge et al. 2002) Washington offers extended foster care for some youths aged 18-21; the program makes sure these youth have the skills they need to be successful in adulthood. According to a report from the UW, “Approximately a third of Washington youths who have spent time in foster care experience homelessness by the time they turn 21.” (https://hr.uw.edu/cfd/2023/05/01/fostering/)