The numbers are telling. As reported recently by numerous news outlets, unemployment for Black Americans over the last year has risen from 6.5 percent to 8 percent; nearly double the rest of the country, which has held steady at 4.3 percent. Workforce participation among Black Americans remains below pre-pandemic levels, and job creation has slowed, according to the latest data from the Bureau of Labor Statistics.
Persistent gaps in economic mobility and access to higher-paying jobs make it harder for Black Americans to rebound when jobs disappear because they are already in a more precarious financial situation. For example, nearly 60 percent of Black renters and 30 percent of Black homeowners are moderately or severely cost burdened, well above national averages.
And as artificial intelligence reshapes the economy, the stakes grow higher. McKinsey research finds that by 2030, up to 30 percent of US work hours could be automated, and as generative AI advances, that figure will likely grow. Black Americans are over-represented in roles that could be automated, such as retail, office support, factory work, food services, and mechanical installation and repair. And they are underrepresented in the highest-growth geographies and the highest-paying industries. All this could worsen existing disparities and make it even more difficult for Black workers to climb the economic ladder—one that has not been as sturdy for them, to start with.
That is the problem. While these realities create real challenges for Black Americans, they also present opportunities for businesses leaders to help rebuild the rungs of economic mobility—starting with how organizations hire, train, and invest in Black talent.
Build skills-based pathways at scale.
Skills, not credentials, should determine opportunity. Credentials matter, but too often act as a gatekeeper. For example, the employment rate for Black workers with some college or an associate’s degree is about the same as it is for US workers who have a high-school diploma. In 2020, research found that about 90 percent of postings in technology, healthcare, and business management required a bachelor’s degree; many of the jobs, though, could be done well by those without advanced education. Because Black Americans are less likely to have a college degree, they cannot even knock on these doors, much less enter.
An organization that McKinsey supports, Opportunity@Work, estimates that there are 70 million Americans who are skilled through alternative routes (STARs). And many will not even get a chance because of this “paper ceiling.”
Moreover, in fast-changing fields like AI, it’s not obvious that having a college degree or industry experience is relevant now or will be for long. What matters is the skills people have, and these can be acquired through different pathways through areas like on the job experience, in the military, or by completing a boot camp. In rural Texas, for example, Roscoe Collegiate High School’s Early College/STEM Academy builds local skill pathways through its P-TECH model—linking high school, college, and industry so students graduate with credentials and work experience that meet regional workforce needs.
Reskill your workforce. The best talent for tomorrow may already work for you.
A second approach is to look at your own workforce and consider how to re-skill workers at risk of AI displacement. No job is future-proof; the emphasis, for both workers and employers, should be on honing future-proof skills. It is certainly possible to fill AI gaps through staff changes, and maybe that sounds easier.
But there is a price, too, in the form of lost loyalty, institutional memory—and money. Turnover is costly both in the time it takes to find skilled workers and for them to learn the job. Providing avenues for internal mobility makes for a happier workforce and less churn. Skills can be learned: attitude and commitment, not so much. As one of my colleagues put it: “Why wouldn’t the organization that currently has them as an employee be looking to grow their skills?”
Invest in local mobility infrastructure: create a talent ecosystem close to home
Third, start close to home by investing in a local talent ecosystem—a form of mobility infrastructure that connects education, business, and community institutions. When local industry and schools work together, they can equip students with the technical and problem-solving skills needed for the jobs of tomorrow. This systems-based approach integrates three proven elements: evidence-based learning models, strong partnerships between K–12 and employers, and alignment between classroom learning and regional economic needs.
By co-developing career-connected programs, apprenticeship programs, and real-world learning opportunities, employers can help ensure that education pipelines directly support local industry demand. In turn, students gain the skills and experiences that prepare them for upward mobility and meaningful work in their own communities.
Investing locally—through collaborative, skills-focused mobility infrastructure—is both an economic imperative and a community opportunity.
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History shows that when Black workers thrive, the entire economy grows stronger. The challenge before us isn’t just to prevent the gap from widening—it’s to build an economy that truly works for everyone.