THE MOST EQUITABLE ECONOMIC RECOVERY IN HISTORY

At the beginning of 2021, prospects for the American economy looked grim. Economic forecasters projected 

the unemployment rate to remain well above 5% through the year and GDP to be about $800 billion below its 

pre-pandemic trend. Such recessions are traditionally marked by long-lasting negative economic 

consequences—especially for people of color, rural areas, and other underserved communities. 

Breaking from the past, decisive policy actions taken by the Biden-Harris Administration and Congress 

propelled the United States to the most equitable economic recovery in its history, with broadly shared 

gains in employment, business creation, real wages, and wealth.

JOBS AND BUSINESSES 

Nearly $800 billion in Paycheck Protection Program loans, nearly $10 billion to small business through the 

State Small Business Credit Initiative, enhanced Unemployment Insurance, and the expanded Child Tax 

Credit supported historic labor market recovery and small business growth.

EMPLOYMENT 

- Black and Hispanic unemployment rates recovered 

quicker than in past recessions and dropped to and 

remained near record low levels.

- Black and Hispanic workers’ wages have risen faster 

than inflation, with real median wages increasing by

4% and 2.4%, respectively, from 2019 to 2022.

LABOR FORCE 

- Many economists predicted it would take years to 

bring women back into the labor force because more 

moms took on child care duty during the pandemic. 

- Instead, women have joined the labor force at 

historically high rates, supported by the expanded 

Child Tax Credit. 

- Both Black and Hispanic women have seen their labor 

force participation rates climb by about 1.5%

compared to pre-pandemic levels.

BUSINESS CREATION 

- Business ownership for Black and Hispanic families 

rose to their highest rates in history.

- From 2019 to 2022, the number of Black and Hispanic 

workers that were self-employed— a measure of 

entrepreneurship—increased by 22% and 24%. 

- Nearly a quarter of all new businesses in 2021 were 

Latino-owned. 

77.0 77.6

70

75

80

Female Labor Force Participation Rate (25-54)

Percent

Oct. '23

Source: Bureau of Labor Statistics.

5.8

18.8

4.8

0

5

10

15

20

Black and Hispanic Unemployment Rates

Percent

Black

Hispanic

16.6

Oct. '23

Source: Bureau of Labor Statistics. 

+6.2

+2.8

-1

1

3

5

7

Black Hispanic

2008 Recession

2020 Recession

Business Ownership Rates

Source: Survey of Consumer Finances.

Percentage Points
HOUSEHOLD FINANCES AND WEALTH 

The American Rescue Plan catalyzed an historic and unprecedented provision of federal assistance to 

struggling Americans, including delivering more than 150 million Economic Impact Payments within the first 

few weeks following the Rescue Plan’s passage; helping launch a national infrastructure to provide emergency 

rental assistance and prevent evictions across the country; expanding access to affordable housing and keeping 

families in their homes; and rapidly distributing the $350 billion State and Local Fiscal Recovery Fund 

resources directly to communities to help local leaders avoid cuts, address local needs, and support rapid, 

resilient, and equitable recovery.

By stabilizing our economy and tackling longstanding challenges, the American Rescue Plan spurred

investments in community development that will extend well beyond the deployment of federal resources and 

laid the foundation for other historic investments in our nation’s economic future, such as the Bipartisan 

Infrastructure Law, CHIPS and Science Act, and Inflation Reduction Act.

WEALTH 

- Between 2019 and 2022, real median wealth increased 

by 60% for Black families and 47% for Hispanic 

families.

- Direct support from the American Rescue Plan 

supported families’ pocketbooks and savings, 

preventing a repeat of the Great Recession, when the 

median Black and Hispanic family lost over a quarter 

of their wealth.

HOUSING 

- Between 2019 and 2022, homeownership rates 

increased by 2.9 and 1.2 percentage points for Black 

and Hispanic families, respectively.

- According to the Eviction Lab, COVID-era policies 

cut eviction filings by more than half. In 2021, 

eviction filings in Black neighborhoods were less 

than half their historic average. 

- Largely because of the Emergency Rental Assistance 

program, eviction rates remained 26% below historic 

averages almost a year after the eviction moratorium 

expired.

POVERTY 

- In 2021, the expanded Child Tax Credit lifted 5.3 

million people out of poverty.

- Child poverty fell to its lowest rate on record. Black 

and Hispanic child poverty both fell from around 

20% in 2019 to about 8% in 2021.

- That’s why the President has called for making the 

expanded Child Tax Credit permanent.

-1.7 -2.1

+2.9

+1.2

-3

-1

2

4

Black Hispanic

2008 Recession

2020 Recession

Percentage Points

Homeownership Rates

Source: Census Bureau.

0

10

20

30

2009 2011 2013 2015 2017 2019 2021

ARP Child Tax 

Credit Expired

Hispanic

Black

Source: Census Bureau.

Percent

Supplemental Poverty Rates

2022

-27.6 -26.6

+60.4 +47.0

-30

-10

10

30

50

70

Black Hispanic

2008 Recession

2020 Recession

Percent

Changes in Median Wealth

Source: Survey of Consumer Finances.