Black workers face financial uncertainty despite economic recovery

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WAs the economy gradually rebounds, a new poll found some black people are still struggling. According to November temperature monitoring survey from the Black to the Future Action Fund, 42% of black adults described their financial situation as “bad.” And a third of respondents said their financial situation had deteriorated.

In partnership with Socioanlaítica Research, Black to the Future Action Fund released its first temperature monitoring survey in July. The national inquiry aims to engage black people on pressing issues and their impact on their families and communities.

Other important findings from the November poll included that 52% of black adults polled were happy with the direction of the country. Yet an almost equal amount, 54 percent, were dissatisfied with the current state of the economy.

While the percentage of people behind on rent or mortgage has declined since September, the survey reflected an increase in the number of people “not confident” in their ability to make the next payment on time. Almost two-thirds of those polled said they were unsure of making their payments on time, up from 54% in September.

But black workers and their families have been given a break this year with the updated child tax credit. Allowing parents to receive the child tax credit as a monthly cash payment improved family finances and led to significant decreases in child poverty.

Last month, Chalkbeat reported that parents were spending money on running household expenses, with food being the most commonly purchased item. With the rising costs hitting hard on many families, the extra money was needed.

Unfortunately, the credit will expire if the Build Back Better Act is not passed in the Senate by the end of the month. Millions of families have benefited from the monthly tax payments, which began in July.

Originally adopted as part of the US bailout earlier this year, CBS reported the child tax credit must be passed before december 28 so that the payments are made on time in january. The Build Back Better Act has already passed the House and awaits action in the Senate. The bill would extend the child tax credit for one year if passed.

As previously reported by NewsOne, the skills training and workforce development provisions could also benefit black workers. A new report from the Joint Center for Political and Economic Studies has also highlighted the importance of the earned income tax credit for childless workers. Like the Child Tax Credit, the Labor Income Tax Credit has been temporarily extended for 2021 but could be extended with the passage of the Build Back Better law. Beyond the one-year extension proposed in the Build Back Better Act, the Joint Center suggests that Congress consider making the changes permanent and also lowering the age of eligibility so that workers from 18 to 24 years old are eligible for the service.

See also:

November jobs report falls short of expectations, Build Back Better law could expand opportunities for black workers

Citing “unsustainable” financial inequalities, HBCU leaders urge Senate passage of Build Back Better Act

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