The State of Economic Equity
The State of Economic Equity describes the nation’s current economic outlook using an equity lens. The Institute for Economic Equity produces this work to examine challenges and outcomes for vulnerableVulnerable groups are those that have economic outcomes below the overall average or their peers. For example, single mothers face structural barriers that restrict their employment. Black or Hispanic/Latino families and less-educated families have lower levels of wealth than their peers. Fewer resources, labor market challenges and greater sensitivity to macroeconomic conditions make it more difficult for these groups to be economically resilient and upwardly mobile. groups and communities. We explore major economic trends that are expected to impact families over the near term and discuss ways to bolster economic resiliency. Our hope is that individuals, leaders and organizations can access this information and data to help their communities thrive.
Learn how the broader economy could benefit from equitable purchasing power.
If Black household income was the same as white household income, it would raise Black purchasing power from $976 billion to a potential $1.6 trillion. How would the broader economy benefit from this additional purchasing power? Because households typically spend the largest portion of their incomes on housing expenses. A big part of these gains will likely go to businesses that construct homes and provide housing, goods and services. The food, transportation and health care sectors could also see large increases in their revenue.
Economic inequities produce gaps that slow the economy. But community investments in areas like childcare, transportation and affordable housing could help fill those gaps and strengthen communities. All of this can lead to greater stability, mobility and innovation while providing businesses and the government with additional sources of revenue.
Visit stlouisfed.org to read the State of Economic Equity blog and learn about the importance of building a more equitable economy.
2024 State of Economic Equity
View the full infographic (PDF) for key findings.
The 2024 State of Economic Equity focuses on the economic outlook for U.S. young adults (ages 18 to 24). This demographic has experienced two disparate economic environments: one disrupted by a public health emergency and a recession and the other characterized by high inflation and a tight labor market, the latter of which could help young adults achieve a degree of economic security early in their working lives.
This year’s analysis examines the economic challenges and opportunities facing young adults from three perspectives—the labor market and employment, mental health, and wealth outcomes—and suggests that investments in young adults could increase their ability to interact with the economy while enhancing worker productivity, innovation and growth beneficial for fostering a healthy economy.
2023 State of Economic Equity
The 2023 series focused on new and continuing economic pressures facing vulnerable workers, including inflation and employment-population ratios that trended downward for some groups despite the strong U.S. labor market in 2022. It also examined how expanding opportunities for households to build wealth could potentially spur personal consumption and innovation, and thus growth of the economy. Finally, it proposed four cases for economic equity—a historical case, resources-based case, deferred maintenance case and business case—and described the role community organizations still feeling the effects of the COVID-19 pandemic played in fostering economic security in low- and moderate-income communities.
2022 State of Economic Equity
The 2022 series focused on the continued recovery from COVID-19-related economic pressures, especially for low- and moderate-income communities. Specifically, it outlined how child care and housing affordability were key to an equitable recovery. It also discussed household debt and the critical transition period for families as relief policies were scheduled to end. Finally, it proposed five ideas that could help families become more resilient among growing wealth inequality.
Note
- Vulnerable groups are those that have economic outcomes below the overall average or their peers. For example, single mothers face structural barriers that restrict their employment. Black or Hispanic/Latino families and less-educated families have lower levels of wealth than their peers. Fewer resources, labor market challenges and greater sensitivity to macroeconomic conditions make it more difficult for these groups to be economically resilient and upwardly mobile.
