DOGE job cuts have disproportionate effect on Black federal workers

Summary

Marketplace Morning Report: DOGE Job Cuts Have Disproportionate Effect on Black Federal Workers

Release Date: May 21, 2025

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Introduction

In the latest episode of Marketplace Morning Report, hosted by Sabri Ben Asore, listeners are provided with a comprehensive update on pressing economic and societal issues. This episode delves into the ongoing debates surrounding the Republican tax bill in Congress and examines the significant impact of federal job cuts on Black federal workers. Through expert analysis and firsthand accounts, the report highlights the broader implications for economic equity and stability within marginalized communities.

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Congressional Tax Bill Stalemate

Sabri Ben Asore opens the discussion by addressing the protracted negotiations within Congress over the Republican tax bill. The House Rules Committee is grappling with potential changes to extend the 2017 tax cuts, striving to appease GOP holdouts. Nancy Marshall Genzer from Marketplace provides insight into the complexities of the situation.

[01:30] Sabri Ben Asore: "So what is the situation right now?"

[01:33] Nancy Marshall Genzer: "Well, they've been up all night. And remember, this bill would extend the 2017 tax cuts. The House Rules Committee is considering changes that would satisfy some GOP holdouts. There is still tension between Republicans who want to cut more and some who want to protect their constituents from cuts to benefits."

The Congressional Budget Office (CBO) analysis, requested by House Democrats, reveals stark disparities in the proposed tax bill's impact. The House version of the bill is projected to increase the incomes of the wealthiest 10% of Americans while reducing the incomes of the bottom 10%. Moreover, the CBO warns that the Republican bill would escalate the federal deficit by over $2 trillion in the next decade, potentially triggering automatic spending cuts to essential programs like healthcare.

[02:02] Nancy Marshall Genzer: "Yeah, House Democrats asked CBO for this analysis. It found the House bill would increase the incomes of the wealthiest 10% of Americans while lowering the incomes of the bottom 10%. And CBO also found the House Republican bill would increase the deficit by more than $2 trillion over the next decade, and that would trigger automatic spending cuts to care and other programs."

As the bill advances towards the Senate, recent developments include the Senate’s approval of a provision allowing certain tipped workers a tax exemption of up to $25,000 annually. This move aligns with parts of the House legislation, although the Senate intends to introduce additional modifications before finalizing the bill.

[02:36] Nancy Marshall Genzer: "The Senate passed a bill yesterday that would allow certain tipped workers a tax exemption of up to $25,000 a year on their tips. So that's one part of the House legislation the Senate supports, although there are lots of other things it plans to change when it finally gets the House bill."

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Federal Job Cuts and Their Disproportionate Impact on Black Workers

A significant portion of the episode focuses on the ongoing reduction of federal employment and its adverse effects on African American communities. Since the onset of the Trump administration, approximately 260,000 federal workers have either been fired, opted for early retirement, or accepted buyouts. Although only about 23,000 have officially left their positions to date, the economic repercussions are expected to be profound, particularly for Black federal employees.

[04:40] Sabri Ben Asore: "So far, around 260,000 federal workers have been fired, retired early or taken buyouts since the Trump administration took office. According to Reuters, a lot of these workers will keep getting paychecks for some months, so technically only 23,000 workers have officially left so far. The economic consequences of this mass downsizing are likely to be severe for African Americans in particular because government employment has been a reliable pathway to black middle class prosperity. Marketplace's Mitchell Hartman has more."

Personal Accounts and Expert Insights

Mitchell Hartman shares his personal experience of the job cuts:

[05:14] Mitchell Hartman: "March 11th is when I received email saying that my position as a civil rights attorney was being abolished along with every position in Dallas."

Nancy Marshall Genzer highlights the broader trend affecting Black federal workers:

[05:23] Nancy Marshall Genzer: "Sharia Smith has handled discrimination cases at the Department of Education for 10 years. She's also president of her union local."

Hartman emphasizes the historical significance of federal employment for Black Americans:

[05:31] Mitchell Hartman: "A lot of black people have looked at the federal government for the stability, though it doesn't pay as well as the private sector."

Despite the lower salaries compared to private sector roles, federal jobs offer unmatched stability and benefits, which are crucial for long-term financial planning and supporting families.

[05:39] Nancy Marshall Genzer: "She's been making $137,000 a year, $100,000 less than a first-year associate at a top private law firm."

Hartman further explains the non-monetary benefits of federal employment:

[06:02] Nancy Marshall Genzer: "All that has attracted Black Americans to government work, says Drew de Silver at the Pew Research Center. As of late 2024, African Americans made up 18.5% of the federal civil service. African Americans make up about 12% of total civilian employment. Meaning, says Christian Weller at the University of Massachusetts, Boston, the hundreds of thousands of job cuts in the works will..."

[06:27] Mitchell Hartman: "Be disproportionately harmful for African Americans because they're overrepresented in the federal government."

Dr. Gary Hoover from Tulane University underscores the potential surge in Black unemployment rates due to these cuts:

[07:12] Nancy Marshall Genzer: "Which is now threatened by Doge downsizing, says Tulane University economist Gary Hoover, especially given that so many low and mid-level jobs are on the chopping block."

The Pew Research Center data reveals that African Americans constitute 18.5% of the federal civil service but only 12% of total civilian employment. This disparity means that the widespread job cuts within the federal sector will disproportionately impact Black workers, exacerbating existing economic inequalities.

Future Prospects and Community Impact

Jobsite Indeed projects that laid-off federal workers will encounter a challenging job market, with limited opportunities outside of IT, research, and healthcare sectors. For individuals like Geddes Scott, a long-serving licensed practical nurse (LPN) at the VA in Queens, the uncertainty is palpable:

[07:38] Nancy Marshall Genzer: "Hoover expects the black unemployment rate to spike higher once more job cuts take effect. Jobsite indeed predicts laid off government workers will face a tough job market in IT and research jobs in healthcare will be easier to find. That's not much comfort to Geddes Scott, a black licensed practical nurse and union rep who's worked for the VA in Queens, New York for 30 years. He hasn't been laid off so far."

Scott expresses his fears about future employment prospects:

[08:05] Mitchell Hartman: "But he says no one is sure what tomorrow holds for us. The air of hate towards what we do and who we are is unnerving."

Despite the relative security of his current position, Scott acknowledges the financial and emotional challenges posed by potential job loss:

[08:22] Mitchell Hartman: "I would have to try to find a place that would hire a 54-year-old LPN who has only been taking care of veterans."

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Conclusion

The Marketplace Morning Report episode underscores the intricate ties between federal employment and economic stability within African American communities. As Congress navigates the complexities of the Republican tax bill, the impending federal job cuts present a significant threat to the progress made in fostering Black middle-class prosperity. Through expert analysis and personal narratives, the report highlights the urgent need for policies that address these disparities and support affected workers.

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Notable Quotes

• [02:02] Nancy Marshall Genzer: "The House bill would increase the incomes of the wealthiest 10% of Americans while lowering the incomes of the bottom 10%."

• [05:14] Mitchell Hartman: "March 11th is when I received email saying that my position as a civil rights attorney was being abolished along with every position in Dallas."

• [07:00] Mitchell Hartman: "The typical black worker in the private sector does not have a retirement benefit."

• [06:02] Nancy Marshall Genzer: "African Americans made up 18.5% of the federal civil service... the hundreds of thousands of job cuts in the works will be disproportionately harmful for African Americans."

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For more insights and detailed analyses, tune into future episodes of Marketplace Morning Report.

Transcript

[Amy Scott]

On WhatsApp, your personal messages stay private between you and whoever you send them to. So things like the passport numbers for your honeymoon stay between you and your fiance and that video call for your gran's 80th stays in the family. Even your streaming password stays between you and your college roommates, who still ask for it every week in your group chat. Because on WhatsApp, your personal messages are yours. No one else can see or hear them now, not even us. WhatsApp message privately this is it, folks. Our May fundraiser ends this Friday, and it's your last chance to help us reach an important goal. With federal funding for public media, shall we say, on shaky ground, we're preparing for a future where we rely even more on you, our listeners. Your support powers trusted independent journalism about the economy and makes it accessible to millions of listeners. The let's hit our goal before Memorial Day weekend. Give [e-mail] donate that's Marketplace.org donate.

[Sabri Ben Asore]

Congress is still slogging its way to a tax bill. From Marketplace, I'm Sabri Ben Asore in for David Brancaccio. The House committee working on the Republican tax bill could be in for a long day after a very long night. The committee started its hearing at 1 this morning, Washington time, and it's not done yet. Marketplace's Nancy Marshall Genzer joins us now live. Live with details. Hi, Nancy.

[Amy Scott]

Hey, Sabrina.

[Sabri Ben Asore]

So what is the situation right now?

[Amy Scott]

Well, they've been up all night. And remember, this bill would extend the 2017 tax cuts. The House Rules Committee is considering changes that would satisfy some GOP holdouts. There is still tension between Republicans who want to cut more and some who want to protect their constituents from cuts to benefits.

[Sabri Ben Asore]

The Congressional Budget Office had something to say about who would gain the most under this House version of the tax bill that's being considered. What did they find?

[Amy Scott]

Yeah, House Democrats asked CBO for this analysis. It found the House bill would increase the incomes of the wealthiest 10% of Americans while lowering the incomes of the bottom 10%. And CBO also found the House Republican bill would increase the deficit by more than $2 trillion over the next decade, and that would trigger automatic spending cuts to care and other programs.

[Sabri Ben Asore]

Now, of course, once this bill gets through the House, it goes to the Senate. There were some movement there on around taxes on tips. Can you tell us what happened there?

[Nancy Marshall Genzer]

Yeah.

[Amy Scott]

The Senate passed a bill yesterday that would allow certain tipped workers a tax exemption of up to $25,000 a year on their tips. So that's one part of the House legislation the Senate supports, although there are lots of other things it plans to change when it finally gets the House bill.

[Sabri Ben Asore]

All right, Marketplace's Nancy Marshall Genzer, thank you so much.

[Amy Scott]

You're welcome.

[Sabri Ben Asore]

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[Sabri Ben Asore]

So far, around 260,000 federal workers have been fired, retired early or taken buyouts since the Trump administration took office. According to Reuters, A lot of these workers will keep getting paychecks for some months, so technically only 23,000 workers have officially left so far. The economic consequences of this mass downsizing are likely to be severe for African Americans in particular because government employment has been a reliable pathway to black middle class prosperity. Marketplace's Mitchell Hartman has more.

[Nancy Marshall Genzer]

It's been a rough year for a lot of federal workers, including Black federal workers.

[Mitchell Hartman]

March 11th is when I received email saying that my position as a civil rights attorney was being abolished along with every position in Dallas.

[Nancy Marshall Genzer]

Sharia Smith has handled discrimination cases at the Department of education for 10 years. She's also president of her union local.

[Mitchell Hartman]

A lot of black people have looked at the federal government for the stability, though it doesn't pay as well as the private sector.

[Nancy Marshall Genzer]

She's been making $137,000 a year, $100,000 less than a first year associate at a top private law firm.

[Mitchell Hartman]

You will not become wealthy. You will experience protections in your benefits, and that allows you to plan for things like a mortgage payment. Many of us are helping to support family members who earn even less.

[Nancy Marshall Genzer]

All that has attracted Black Americans to government work, says Drew de Silver at the Pew Research Center. As of late 2024, African Americans made up 18.5% of the federal civil service. African Americans make up about 12% of total civilian employment. Meaning, says Christian Weller at the University of Massachusetts, Boston, the hundreds of thousands of job cuts in the works will.

[Mitchell Hartman]

Be disproportionately harmful for African Americans because they're overrepresented in the federal government.

[Nancy Marshall Genzer]

Starting in the 1960s, government agencies vigorously adopted anti discrimination policies leading to more and better jobs for black applicants than they could find in the private sector. The jobs offer long stable tenure 12 years on average versus 4 for all civilian workers. Most offer union protections and Weller says the non salary benefits build long term wealth and security.

[Mitchell Hartman]

The typical black worker in the private.

[Amy Scott]

Sector does not have a retirement benefit.

[Mitchell Hartman]

Whereas 80% of black federal government workers.

[Amy Scott]

Have a retirement savings plan, all of.

[Nancy Marshall Genzer]

Which is now threatened by Doge downsizing, says Tulane University economist Gary Hoover, especially given that so many low and mid level jobs are on the chopping block.

[Mitchell Hartman]

African Americans are underrepresented in senior levels of federal employment, so cutting people who are probationary, you're going to overcut the number of African Americans.

[Nancy Marshall Genzer]

Hoover expects the black unemployment rate to spike higher once more job cuts take effect. Jobsite indeed predicts laid off government workers will face a tough job market in it and research jobs in healthcare will be easier to find. That's not much comfort to Geddes Scott, a black licensed practical nurse and union rep who's worked for the VA in Queens, New York for 30 years. He hasn't been laid off so far.

[Mitchell Hartman]

But he says no one is sure what tomorrow holds for us. The air of hate towards what we do and who we are is unnerving.

[Nancy Marshall Genzer]

Scott earns 80,000 a year. He knows he could make more working for a private hospital or clinic, but.

[Mitchell Hartman]

I would have to try to find a place that would hire a 54 year old LPN who has only been taking care of veterans.

[Nancy Marshall Genzer]

He says he doesn't know if there's a job he can fill and feel fulfilled in. Outside the VA I'm Mitchell Hartman for.

[Sabri Ben Asore]

Marketplace and in New York I'm Sabri Benishore with the Marketplace Morning Report from APM American Public Media.

[Amy Scott]

Can we invest our way out of the climate crisis? Five years ago it seemed like Wall street was working on it until a backlash upended everything.

[Mitchell Hartman]

So there's a lot of alignment between the dark money right and the oil industry on this effort.

[Amy Scott]

I'm Amy Scott, host of How We Survive, a podcast from Marketplace. In this season, we investigate the rise, fall and reincarnation of climate conscious investing. Listen to How We Survive wherever you get your podcasts.