Native Americans saw their jobless rate soar during the pandemic, but a growing population, increasing entrepreneurship and more federal resources could give the community an economic boost, according to a new Wells Fargo report.
The jobless rate among Native Americans living outside metro areas rose to nearly 20% during the pandemic as many service jobs disappeared and casinos in tribal communities were shuttered to slow the spread of COVID-19, according to the Wells Fargo commentary, which provided a financial snapshot of Indigenous Americans at the start of Native American Heritage Month.
But the number of Americans identifying as indigenous increased by over 27% to 3.7 million during the last decade compared to a 7.4% uptick in the overall population, according to U.S. Census data. Another roughly 6 million Americans said they had some American Indian or Alaska native ancestry.
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With a median age of 32 compared to 38 for the broader population and rapidly rising numbers, the indigenous community may gain political clout that can lead to more funding for education and other areas, fostering improved financial stability, says Jay Bryson, chief economist for Wells Fargo and co-author of the commentary.
"More people appear to be embracing their Native American ancestry,'' Bryson says, "and over time that could translate into political power...and potentially direct more resources to the community.’’
Interior Sec. Deb Haaland made history this year by becoming the first Native American to serve as a presidential Cabinet secretary. Charles "Chuck" Sams III has been nominated as director of the National Park Service. If confirmed by the Senate, he would be the first Native American to serve in that role.
Lower household income
Native Americans have tended to experience higher unemployment than many other communities. Last year, the not seasonally adjusted average jobless rate for Native Americans and Alaska natives was 11.7%, as compared to 11.4% for Black Americans, 10.04% for Hispanics, and 7.3% for whites, according to the Bureau of Labor Statistics.
Additionally, the median household income among Native Americans was about $45,000 in 2019 compared to the overall median national income of roughly $66,000, according to the U.S. Census Bureau's American Community survey.
The income gap may be due in part to Native Americans often living outside of metro areas, winnowing the number of available jobs, says Bryson. And roughly 28% of Native Americans who were employed in 2019 worked in management or professional jobs vs. the 40% of the overall workforce that filled those higher-paying positions, he said, citing census data.