National Equity Atlas

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Data Summary: Newark, New Jersey
Regions and states are equitable when all residents—regardless of their race/ethnicity, nativity, neighborhood of
residence, or other characteristics—are fully able to participate in the community’s economic vitality, contribute to
its readiness for the future, and connect to its assets and resources.
America’s demography is changing—and the nation’s economic fate will hinge on how we respond to these changes.
As the population grows more diverse and people of color become the majority, equity—fair and just inclusion—
has become an urgent economic imperative. While rising diversity and widening inequality are nationwide trends,
they vary widely across America’s metropolitan regions and states. The National Equity Atlas provides data for the
nation’s largest 150 regions, 50 states, and the District of Columbia.
This summary describes how Newark is doing on several key indicators in comparison to the national trends. Find
more data and policy ideas at: nationalequityatlas.org
The Face of America Is Changing
The United States is undergoing a profound demographic transformation in which people of color are quickly
becoming the majority. Already more than half of all children under age five are of color, and by 2044, people of
color will be the majority overall. This shift is happening not only in cities, the traditional bastions of diversity, but
also in suburban and rural communities across the country.
Diversity is increasing
America is becoming a true world nation that is
increasingly multiracial and multicultural. In 1980,
80 percent of the population was White. By 2044,
a majority of Americans will be people of color.
Racial/ethnic composition: Newark, NJ
11/9/2015
Data Summaries | National Equity Atlas
White
Black
Latino
Asian
Native American
Mixed/other
U.S. percent white
Between 1980 and 2010, the people-ofcolor population in Newark grew from
78 percent to 88 percent.
26%
19%
30%
34%
57%
56%
52%
50%
22%
17%
1980
1990
14%
2000
12%
2010
1
11/9/2015
Data Summaries | National Equity Atlas
percent and the White population has the lowest at -17.5 percent
Data Summaries | National Equity Atlas
Communities of color are
driving growth
Percent
change
in population:
NewarkNJ
City, NJ
Percent
change
in population:
Newark,
All
In the past decade, almost all net population growth
in the United States (92 percent) came from people
of color, and in many places, growing communities
of color prevented population decline. Latinos had
the highest growth rate (43 percent), followed
by Asians, people with mixed racial backgrounds,
African Americans, and Native Americans. The White
population grew just one percent nationally, and
declined in many communities.
White
1.3%
-17.5%
Black
-2.8%
Latino
In Newark, between 2000 and 2010, the
Asian population had the highest growth rate
at 37 percent and the White population had
the lowest at -17 percent.
16.3%
Asian
36.8%
Native American
34.8%
Mixed/other
-0.7%
Explore Demographic Indicators
Inequity Threatens Economic Prosperity
The country’s growing, diverse population is a tremendous economic asset in the global economy. But rising income
inequality and persistent racial gaps in health, wealth, income, employment, education, and opportunity prevent
low-income people and people of color from realizing their full economic potential. And as the nation becomes
more diverse, the costs of inequity will grow. Here are some of the key challenges:
Income inequality is on the rise
Over the past three decades gains in income and wages have gone largely to the very top earners, while wages
and incomes of working- and middle-class workers have declined or stagnated. Nationally, since 1979, incomes of
workers at the bottom fell by 11.4 percent while those at the top increased 14.8 percent.
Since 1979, income for full-time workers
in Newark at the bottom 10th percentile
decreased 11 percent while income for
those at the 90th percentile increased
16 percent.
Earned income growth for full-time wage and salary workers:
Newark, NJ
11/4/2015
Data Summaries | National Equity Atlas
Inequity Threatens Economic Prosperity
30%
http://nationalequityatlas.org/data­summaries/Newark_City/
20%
15.7%
10%
5%
0%
-0.8%
-10%
-11.3%
-20%
10th
percentile
-13.1%
20th
percentile
50th
percentile
80th
percentile
90th
percentile
2
Data Summaries | National Equity Atlas
Racial economic gaps are wide
and persistent
Median
hourly wage by race/ethnicity: Newark,
NJ
11/4/2015
Data Summaries | National Equity Atlas
People of color
White
Rising inequality disproportionately affects
workers of color, who are concentrated in lowwage jobs that provide few opportunities for
economic security or upward mobility. Workers
of color consistently earn lower wages and are
more likely to be jobless compared to their White
counterparts, and racial gaps remain even among
workers with similar education levels. Nationwide,
full-time workers of color currently earn 23
percent less than their White counterparts—the
gap is slightly more than in 1979, and is growing
rather than shrinking.
$22
$21
$20
$20
$19
$18
$18
$18
$17
$16
$16
$14
In 2012, the median wage for workers
of color in Newark was the same as the
median wage for White workers due to a
decline in median wages for White workers.
A workforce unprepared for the
jobs of the future
America’s future jobs will require ever-higher
levels of skills and education, but our education
and job training systems are not adequately
preparing the Latinos, African Americans,
and other workers of color who are growing
as a share of the workforce to succeed in the
knowledge-driven economy. Nationally, by
2020, 43.1 percent of all jobs will require an
associate’s degree or higher. Today, only 26.7
percent of U.S.-born Latinos, 25.9 percent of
African Americans and 14.1 percent of Latino
immigrants, have that level of education.
1980
1990
2000
2012
A workforce unprepared for the jobs of the future
America’s future jobs will require ever-higher levels of skills and educ
our education and job training systems are not adequately preparing
Latinos, African Americans, and other workers of color who are growi
share of the workforce to succeed in the knowledge-driven economy.
Share of population ages 25-64 with an associate’s degree or higher and
Nationally,
by 2020,
43.1anpercent
of all
jobsor
will
require an Associate’
share of
jobs projected
to require
associate’s
degree
higher:
11/4/2015
Data Summaries | National Equity Atlas
Newark,
or NJ
higher. Today, only 26.7 percent
of U.S.-born Latinos, 25.9 percent
African Americans and 14.1 percent of Latino immigrants, have that l
Jobs
in 2020
education.
50%
White,Newark
U.S.-born City, NJ
30%
By 2020, 50 percent of jobs will require at least a AA degree or highe
preparation for jobs of the future by race/ethnicity in the chart to the
White, immigrant
15%
and projected state/national-level job education requir
Black,Current
U.S.-borneducational attainment
18%
City, NJ
http://nationalequityatlas.org/data­summaries/Newark_City/
Black, immigrant
By 2020, 50 percent of jobs in New
Jersey will require at least an associate’s
degree or higher, yet only 12 percent of
Latino immigrants, 15 percent of
U.S.-born Latinos, and 18 percent
of U.S.-born Blacks have this level of
education in Newark.
Latino, U.S.-born
Latino, immigrant
Mixed/other
29%
15%
12%
22%
Explore Equity Indicators
3
Data Summaries | National Equity Atlas
Equity Is the Superior Growth Model
Economists, business leaders, and elected officials increasingly recognize that inequality is hindering economic
growth and racial and economic inclusion are the drivers of robust economic growth. To build a strong next
economy, leaders in the private and public sector need to advance an equitable growth agenda: a strategy to create
good jobs, increase human capabilities, and expand opportunities for everyone to participate and prosper. Equity
will make America stronger.
The economic benefits of equity
Racial economic inclusion is good for families, good for communities, and good for the economy. Nationally, GDP
would have been $2.1 trillion higher in 2012 if people of color had earned the same as their White counterparts.
We also know millions fewer would have lived in poverty, there would be billions more in tax revenue, and a smaller
Social Security deficit overall.
If workers of color had income and
employment parity with White workers
in Newark, their incomes would have
been higher, ranging from a 15 percent
increase for Asians to a 24 percent
increase for Latino workers.
Income gain with racial equity: Newark, NJ
11/4/2015
Data Summaries | National Equity Atlas
30%
25%
24%
22%
20%
19%
16%
15%
15%
10%
5%
0%
Black
Latino
Asian
Mixed/other
People of
color
Explore Economic Benefits Indicators
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