Why DEI Won’t Save Us
The employment landscape for African Americans continues to be shaped by significant challenges, including persistent disparities in job opportunities and wage levels. According to data from the Bureau of Labor Statistics, for decades the unemployment rate for African Americans has remained roughly twice as high as that of white Americans in any economy, reflecting long-standing systemic barriers. At the same time, illegal immigration has impacted job availability and wages, particularly in sectors where Black workers are overrepresented. Increased competition in low-wage industries has further compounded the economic obstacles for many in the Black community.
A new approach must be developed—one that focuses on self-sufficiency and global competitiveness. While race-based diversity initiatives, such as Diversity, Equity, and Inclusion (DEI) programs, have gained popularity in recent years, these efforts often fail to address the root causes of the employment challenges facing African Americans in particular. Instead, The Akar Institute advocates for policies that empower Americans to succeed through merit-based opportunities, equipping them with the tools needed to thrive and compete in today’s global economy.
The Persistent Unemployment Gap
The Black-white unemployment gap has long been a critical issue in the U.S. labor market. This gap highlights disparities in access to education, professional training, and fair hiring practices. These systemic barriers contribute to the cycle of unemployment and underemployment that disproportionately affects African Americans, especially those without access to quality education and advanced skills training.
Addressing this gap requires moving beyond short-term fixes, such as diversity quotas, and focusing on comprehensive strategies that dismantle the barriers that prevent individuals from accessing economic opportunities. Policies should aim to open doors for all individuals, ensuring that success is based on merit and effort, not race or background. By improving access to education, skills training, and job opportunities, we can empower all Americans and particularly those in the Black community to succeed on an equal footing in the labor market.
The Impact of Illegal Immigration on Black Employment
The U.S. has witnessed a surge of immigrants under the Biden-Harris administration, with figures from the Congressional Budget Office (CBO) showing a net gain of more than 9 million immigrants since the end of 2020.
The Bureau of Labor Statistics (BLS) noted that in the past 12 months through August 2024, native-born American workers lost over 1.3 million jobs, while foreign-born workers gained more than 1.2 million jobs in that span.
As of August 2024, the BLS estimated there were 129,712,000 native-born workers — down from 131,031,000 in August 2023. By comparison, there were 31,636,000 foreign-born workers in August — an increase from 30,396,000 compared to a year ago.
Factoring in illegal immigration adds a separate and tangible impact on employment in industries where Black workers are heavily represented, such as construction, agriculture, and hospitality. The influx of undocumented workers has contributed to wage suppression and increased competition for low-wage jobs, further limiting employment opportunities for African Americans in these sectors.
Immigration reform must take into account the impact that illegal immigration has on vulnerable American workers across the country. Policymakers should focus on crafting fair immigration policies that protect the interests of American workers, ensuring that job opportunities are not disproportionately affected by wage suppression and job displacement. A labor market that promotes fairness and competition is essential for creating economic opportunities for all individuals, particularly those in underrepresented or economically disadvantaged communities.
Moving Beyond DEI Initiatives: Merit-Based Hiring Delivers Real Results
DEI fatigue is spreading across corporate America, and for good reason. Despite the initial promise of Diversity, Equity, and Inclusion programs, more and more companies are turning away from these initiatives as they come to recognize a fundamental flaw: DEI programs too often prioritize identity over ability. Instead of solving the deep-rooted issues of inequality, they have become checkboxes that fail to drive real, meaningful change in the workplace. The result is a growing backlash as companies search for more effective approaches to hiring, development, and success.
Unlike DEI programs, which can create artificial diversity through race-based preferences, merit-based hiring promotes true diversity—diversity of thought, experience, and expertise. When individuals are hired based on their actual qualifications, companies end up with a team of people who have earned their positions, leading to better overall performance. This is the kind of diversity that matters—the kind that drives innovation, creativity, and growth because it’s built on real talent.
Not only that, merit-based hiring is a far better solution for solving the root causes of inequality. Instead of focusing on race-based quotas, meritocracy pushes communities to address the real barriers to opportunity: access to education, executive functioning, emotional EQ and IQ, skills training, and professional development. By investing in breaking down these barriers, communities, and businesses can help create a truly level playing field where everyone has a shot at success—not because of their background, but because of their effort and talent.
Corporations that are moving away from DEI initiatives are recognizing that while diversity is important, the way to achieve it isn’t through shortcuts like quotas and preferences. Real diversity emerges when the playing field is leveled, and individuals are allowed to shine and succeed based on merit. When people are hired for what they bring to the table, not to fill a demographic requirement, organizations are stronger, more innovative, and more competitive.
In the end, merit-based hiring delivers better results because it’s built on the foundation of fairness and opportunity for all. It encourages people to strive for excellence and eliminates the resentment that often accompanies race-based hiring practices. It’s not just a more effective way to hire—it’s a better way to build a workforce that is capable, driven, and ready to compete in a global economy.
The truth is, meritocracy is the great equalizer. Make no mistake, The Akar Institute does not deny that inequality exists. On the contrary, we focus on removing the real barriers to success and empower individuals to achieve their full potential. As more companies abandon DEI in favor of merit-based systems, they are finding that it’s not just a fairer way to hire—it’s a smarter way to build stronger, more successful teams.
Fostering Self-Sufficiency and Economic Empowerment
A key component of addressing the employment challenges facing African Americans is focusing on self-sufficiency and economic empowerment. Access to quality education, especially in fields like AI, Science, Technology, Engineering, and Mathematics (STEM), is critical to ensuring that individuals can compete in high-demand industries. In today’s rapidly evolving economy, vocational training and adult learning programs are also essential in closing the skills gap and providing pathways to stable, well-paying jobs.
Beyond education, fostering entrepreneurship is another powerful means of promoting economic independence. Black entrepreneurs often face significant challenges in accessing capital and scaling their businesses, limiting their ability to create jobs and generate wealth within the community. By promoting policies that provide equal access to funding and resources, we can help Black entrepreneurs overcome these barriers, reduce reliance on traditional job markets, and stimulate economic growth from within.
In this context, immigration policies should also be carefully considered. While addressing immigration reform, it’s crucial to recognize the potential impact on wages and job availability for American workers. A balanced approach that protects the interests of all U.S. citizens—particularly those in economically vulnerable communities—will ensure that competition in the labor market remains fair and equitable.
Achieving Global Competitiveness
In today’s globalized economy, African Americans must be equipped to compete not just domestically but on a global stage. A focus on global competitiveness encourages innovation, entrepreneurship, and economic independence by empowering individuals to explore international business opportunities and expand their reach beyond local markets.
Rather than relying solely on corporate DEI programs or domestic market opportunities, Black entrepreneurs should be encouraged to pursue global partnerships, enter new markets, and compete at the international level. This approach will create new avenues for job growth, wealth creation, and business expansion, helping to build a more self-sufficient and globally competitive Black community.
Conclusion: DEI will not save us
The employment challenges facing African Americans are multifaceted, but solutions that rely on race-based preferences and diversity initiatives do not address the deeper economic barriers at play. By focusing on self-sufficiency, entrepreneurship, and global competitiveness, we can create a future where success is determined by merit, talent, and hard work, rather than artificial quotas or preferences.
The Akar Institute is committed to advocating for policies that break down barriers to opportunity, empower individuals to achieve economic independence, and promote long-term success. By addressing the root causes of unemployment and underemployment, we can ensure that the Black community—and all Americans—have the tools they need to thrive in a competitive global economy.
The path forward lies in fostering a culture of self-sufficiency, innovation, and entrepreneurship. With the right policies and initiatives, we can build a future where African Americans are equipped to succeed based on their abilities and efforts, driving progress and prosperity for themselves and the nation.
Rick Buchanan
Executive Director
The Akar Institute