Tech layoffs will create new hurdles for Black STEM talent. Can the industry refocus DEI efforts?

An anticipated economic downturn and mass layoffs are shaking up the tech industry and creating a newfound sense of uncertainty. But the squeeze on opportunities within the industry may create more challenges for workers of color than their white counterparts. 

Despite much lauded DEI efforts, Black workers still account for just 7.4% of the tech workforce, according to a 2021 report from tech-focused nonprofit AnitaB.org. Factor in the 2022 elimination of nearly 40,000 jobs within the industry, and Black tech talent is facing a fresh uphill climb. 

"Historically, the unemployment rate for people with tech skills is significantly lower than the unemployment overall — but the Black unemployment rate is typically twice that of white people," says Michael Collins, vice president  of Jobs for the Future, a nonprofit that supports equitable economic advancement. "Recent layoffs in tech may have an impact on corporate DEI initiatives, which could stall emerging efforts to diversify the tech workforce." 

Read more: 10 industries that overlook Latinx talent

But the recent layoffs are just one small piece of a bigger puzzle, Collins says, pointing to a historic lack of available tech opportunities for workers of color.

A recent JFF survey of 1,000 Black professionals found that over six in 10 Black employees do not currently work in digital or information technology but would be open to changing careers. But 55% of those surveyed said they were unsure of where to begin, 51% said they lacked the financial resources and 52% said they lacked the needed skills. Forty-five percent of respondents said a lack of connections was holding them back from a tech career, highlighting the difference in accessibility workers of color often face.

"Black learners typically lack access to the kinds of relationships that can help them navigate the tech industry and secure the experiences that come from internships and work-based learning opportunities," Collins says. "Hiring preferences and practices isn't enough to [create] tech skills and credentials." 

Read more: Not investing in DEI? That decision could cost your company

To support existing Black talent through a tech downturn — and ensure that future entrants to the workforce have a clearer path to opportunities within the industry — employers need to think beyond simple recruiting efforts. 

Collins suggests creating coalitions of employers and enlisting independent evaluators to review company data and identify and address anti-Black bias in hiring, compensation and advancement. This includes improving job quality for entry-level and frontline workers (who are disproportionately Black Americans, Collins notes) and building ladders to advancement opportunities as well as promoting sponsorship and mentorship opportunities in the workplace. Those relationships can be meaningful steps toward reducing the gap in access to professional networks and social capital.

"Dismantling systemic racism requires extensive forethought and planning," Collins says. "Sustainable wins will not materialize through a one-time wave of philanthropy alone, especially if long-standing policies and frameworks go unaddressed."