While 2023 saw some progress in the movement for economic justice, it also fueled a well-funded and coordinated backlash from people and organizations whose only interest is in maintaining their power. In the face of such opposition, our awareness of these issues and our unwavering commitment to fighting for the economic well-being of everyone becomes more important than ever. As we look back at this past year, it is worth highlighting some of the “under the radar” positive trends we saw and what they mean for the future.

POSITIVE TRENDS

Wage gains chip away at income gaps

The heightened advocacy for working people’s rights translated into tangible wage increases across industries. The United Airlines pilots’ union secured a groundbreaking labor deal with pay increases of up to 40% over four years. SAG-AFTRA’s strike resulted in increased residuals for actors in streaming projects. All told, data analysis by The Conference Board indicates a 4.4% growth in the average salary increase budget across industries in 2023, reaching its highest point in 22 years.

This positive trajectory is expected to continue into 2024. As of January 1st, 22 states–including California, New York, and Washington–increased their minimum wage. This is significant in the ongoing struggle for livable wages, particularly for Black working people. Minimum wage increases have been shown to decrease the racial wage gap due to the overrepresentation of Black working people in low-wage jobs.

Organized labor rises

Labor union organizing and participation surged in 2023, culminating in tangible wins across industries. From Hollywood to healthcare, more than 500,000 working people went on strike to address persistent income inequalities that have left many working people unable to make ends meet.

The Writers Guild of America garnered considerable media coverage during its 148-day strike, ending with an agreement that landed significant wins for writers to the tune of an estimated $233 million gain in compensation for writers compared to the previous agreement. This strike coincided with a strike by the SAG-AFTRA actors’ union, which secured protections around the use of Artificial Intelligence and improved compensation for streaming projects.

Strikes within the automotive and healthcare industries were similarly successful. The United Auto Workers strike expanded to 20 states and secured contract changes for approximately 150,000 auto industry working people. In October, more than 75,000 working people at Kaiser Permanente, the nation’s largest public healthcare nonprofit, went on strike in five states over staffing levels–the largest strike of healthcare working people in U.S. history.  These were far from the only labor activities we saw last year. This wave of successful union activism is transforming workplaces for the better.

Financial health measures improve household bottom lines

In 2023, the Biden-Harris administration stepped up its efforts to improve financial health nationwide, taking on important issues like student loans, medical debt, and junk fees. 

The administration has already forgiven nearly $132 billion in student loan debt for more than 3.6 million people, and is a positive step forward. This is particularly relevant for Black college graduates who are unfairly burdened by student loan debt due to borrowing more to finish degrees and then face wage gaps and compensation disparities that make it harder to accumulate wealth.

The Biden-Harris administration also outlined plans to develop federal rules to prevent medical debt from impacting personal credit scores. Medical debt, a common result of unplanned emergencies or underinsurance, impacts millions of people living in the United States. Medical debt disproportionately impacts Black adults and households. Data shows that nearly 28% of Black households hold medical debt in comparison to 17% of white, non-Hispanic households and one in three Black adults hold past-due medical bills compared to fewer than one in four white adults. Combating medical debt and preventing its impact on personal credit scores can open up economic opportunities for Black adults throughout the United States.

Finally, the Biden-Harris administration took on the junk fees that are estimated to cost buyers more than $64 billion annually. In October, the Federal Trade Commission proposed legislation to ban hidden fees across various industries like car rental agencies, hotels, and event ticketing providers. This is a big win for Black and Brown consumers, who are disproportionately impacted by this type of systemic, predatory practice.

Additionally, the Consumer Financial Protection Bureau issued an advisory opinion that banks and credit unions cannot charge excessive fees to consumers who want to check account balances or determine how much they need to pay off a loan. It’s a key first step in increasing transparency in the lending process, one of the necessary economic justice actions identified in the 2023 Cash Poor Report that SoLo Funds released in partnership with the Global Black Economic Forum.

ALARM BELLS

The wide-ranging assault against diversity, equity, and inclusion

In 2023, at least 24 states proposed various bills to restrict or end diversity, equity, and inclusion programs in higher education. Some of these came before, but many came after the Supreme Court’s egregious and monumental ruling ending the use of affirmative action in college and university admissions programs. However, higher education was not the only target. Venture capital firms, non-profits, law firms, and government institutions faced threats and lawsuits against programs or policies geared toward supporting historically marginalized groups. These lawsuits and efforts are an attempt to chill efforts to bridge historic structural disparities in representation.

The racial homeownership gap widened

While wages steadily increased in 2023, there has not been a commensurate increase in household wealth. In fact, the racial homeownership gap is widening.

Research by the Urban Institute reveals that the gap in homeownership rates between white and Black Americans is wider today than it was before the Civil Rights era. Despite an overall increase in the U.S. homeownership rate to 65.5% in 2021, the Black homeownership rate is only 44%. This represents a  mere 0.4% increase in the past decade.

These homeownership disparities are significant, and they clearly tell us that racial discrimination is playing a role. Black homeowners face disproportionately high denial rates for both purchase and refinance loans. According to Home Mortgage Disclosure Act data, 20% of Black loan applicants were denied mortgages, compared to about 11% of white applicants. A recent CNN report drives the point home: Black applicants to The Navy Federal Credit Union were more than twice as likely to be denied mortgages as White applicants, even when more than a dozen different variables like income, debt-to-income ratio, property value, down payment percentage, and neighborhood characteristics were identical.

These statistics raise important questions about institutional lending practices and their role in perpetuating racial disparities. Reducing these gaps will require dedicated and sustained investment in solutions that promote equity in a targeted way, beyond waiting for passive economic developments.

Increase in child labor violations

In 2023, the United States saw a concerning decline in child labor protections. During the fiscal year that ended Sept. 30th, the Labor Department found 5,792 kids working in violation of child labor laws – an 88 percent increase since 2019. Workplace injuries have exposed companies for employing children as young as 10 years old under dangerous conditions.

With unemployment at record lows and employers having difficulty filling lower-paying jobs, immigrant communities of color are particularly vulnerable to being taken advantage of by employers seeking cheap, underage labor. Worse still, these employers are being aided by states that are passing legislation to reduce child labor protections.

Iowa Governor Kim Reynolds passed some of the most extreme legislation earlier this year, allowing employers to hire children as young as 14 to work previously prohibited, hazardous jobs while state agencies waved restrictions on hazardous work for teenagers in a range of dangerous occupations. Meanwhile, Arkansas Governor Sarah Sanders signed a bill that eliminated youth work permits, no longer requiring 14-year-olds to obtain an employment certificate verifying parental consent and proof of their age. In total, 14 states introduced or passed laws loosening child labor protections over the past two years.

What is most concerning is that the attacks on child labor laws are part of the same machine that is currently organizing a retaliation against social justice, democracy, equality, and human rights. As these violations continue to rise, state and federal policymakers must advocate for low-income communities by strengthening protective laws and eliminating hazardous ones.

As we look back at 2023, we should acknowledge the progress made in increasing the earning potential and the financial health of millions of people.  Although these stories did not generate a lot of attention, we cannot lose sight of the worthwhile wins taking place around us every day — wins that add up to meaningful improvements in the lives of working people. The noise of a well-oiled right-wing movement operating out of a fear of displacement certainly generated more attention. This resource rich group is fueling divisions based on race and gender to deny our communities the resources, jobs, and healthcare we all need. But those who care about equity cannot retreat under threat or pressure.  We must collectively fight for a world where we have the freedom to live with dignity, free from systemic oppression made whole with progress toward equality, equity, and inclusion.  

Alphonso David is a civil rights attorney. He is the president and CEO of the Global Black Economic Forum.