African American Income Statistics: An In-Depth Analysis

This article offers an overview of the social, economic, and environmental factors that shape the health of the Black/African American population in the United States. Considering the unique environments, cultures, histories, and circumstances of Black/African American populations is fundamental to improving their health outcomes and reducing disparities. Black/African Americans are the second largest racial and ethnic minority population in the United States, following the Hispanic/Latino population.

The Census Bureau defines “Black or African American” as anyone “having origins in any of the Black racial groups of Africa, including people who indicate their race as "Black or African American," or report responses such as African American, Jamaican, Haitian, Nigerian, Ethiopian, or Somali.

Distribution of African Americans by state.

Overview of the Black Population in the United States

In 2023, an estimated 48.3 million people self-identified as Black, making up 14.4% of the country’s population. The Black American population is diverse, including those who say their race is Black, either alone or in combination with other racial backgrounds. Note that the racial and ethnic categories used in census data have changed over time, including question wording, formatting and instructions, which may affect how people identify by race and ethnicity.

Black Americans are experiencing the most positive economic conditions in generations: record low unemployment rates, record low poverty rates, along with record high income levels and new heights of wealth. Yet deeper investigation reveals that despite record breaking economic numbers, African Americans are still mired in great economic insecurity.

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Key Economic Indicators

Several key economic indicators highlight the complexities of the African American economic condition:

  • Unemployment Rate: From 1972 to 2022, the annual Black unemployment rate averaged 11.6 percent. In 2023, the annual Black unemployment rate was 1.7 times the white rate.
  • Employment Rate: The Black annual prime-age employment rate is at a record high.
  • Median Household Income: Black median household income is at its highest point in a generation.
  • Poverty Rate: From 1959 to 1970, Black poverty declined from 55 percent to below 35 percent. The Black poverty rate stayed above 30 percent until 1994.
  • Median Wealth: Median Black wealth or net worth (assets minus debts) has reached a new high.

Despite these advances, significant disparities persist. In 2023, over 1.4 million more Black people would need to be working to match the employment rates of white people.

The Racial Wealth Gap in America

Income Disparities and Historical Context

As noted in the 2023 report “Still A Dream: Over 500 Years to Black Economic Equality,” the nation is still moving at a glacial pace when it comes to bridging Black/white inequality, even with all of the advances made since 1960. If the nation is to get past its history of racial inequality, it must build on the areas of recent progress for African Americans. Even as the country faces a backlash around issues titled “diversity, equity, and inclusion,” the reality is that without a strong, targeted approach to increase economic advancement for African Americans, Black people will continue to be economic second-class citizens.

Although incomes for African Americans have improved significantly since the Civil Rights era, they are still lower than the national average. For example the median income for Black families is $28 thousand a year less than the national family median income. As you can see from the chart labeled ‘Black Household Income’ that Black married-couple families make more than twice that of Female householder families.

Black Household Income Statistics.

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This chart also indicates that there may be a substantial benefit for those in a married-couple family regardless of race or ethnicity. African American median Income has increased since the Great Recession of 2008, however the racial gap persists. African Americans were the last major racial/ethnic group to start recovering from the recession. Another indication is the correlation between education and wages.

In 2021 African Americans with no high school diploma earn just about $64 less per week than the median of all Americans without a high school diploma. Or African Americans without a diploma make 90 cents for every dollar all Americans make. Black men with a bachelor’s degree earn only 77 cents for every dollar that all American men with a bachelor’s degree earn.

Household vs. Family Income

It's important to distinguish between household and family income:

  • Household Income: The total income of all people living in the same home, whether they are related or not. For example, if two roommates live together, their combined income is counted as household income.
  • Family Income: The total income of only family members who live together. For example, if a mother, father, and their child live together, their combined income is family income.

Income Trends and the Great Recession

During the 1990s African American income grew tremendously. By 2000, about 44% of African American households had an annual income of $50K or more compared to just 22% in 1969. However due to the Great Recession which lasted from December 2007 to June 2009 that number dropped to just 38% by 2010 reversing much of these gains. The most dramatic change during the Great Recession was the percentage of Black households making under $15K (from 18% in 2000 to 22% in 2012) which was well below the poverty line for most families.

Spending Patterns of Black Households

Household spending data can offer great insight on how households choose and prioritize their wants and needs. Blacks, not including those of more than one race, made up 13.1 percent of the total United States population, with over 39 million people. The average Black household contains 2.57 persons and 1.25 owned vehicles. Most of these households were renters, living in apartments or flats. Their dwellings averaged 5.45 rooms and 1.49 bathrooms.

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Black households’ annual expenditures averaged $36,149, which was 79.8 percent of their average income before taxes. The amount spent on housing ($13,530) consumed the biggest portion of annual expenditures, accounting for more than one-third of the total. This was followed by transportation ($5,946) and food ($5,825). The remaining expenditures made up roughly 30 percent of total spending: personal insurance and pensions, healthcare, entertainment, cash contributions, apparel, and education, in addition to personal care, tobacco, alcohol, reading, and miscellaneous expenditures.

Income Distribution and Expenditure Patterns

The distribution of Black household pretax income is skewed; most households sampled are on the lower end of the income continuum. In fact, more than 35 percent of Black households’ pretax income fall between $12,500 and $37,499.

To understand spending patterns, Black households were divided into low-income (bottom 20th percentile, making less than $12,001 annually) and high-income (top 20th percentile, making more than $66,549 annually) groups.

Low-income Black households in the sample averaged $6,342 in pretax income, compared with an average $112,307 in pretax income for high-income Black households. The low-income Black households contained 1.9 persons on average, and the high-income Black households averaged 3.3 persons. In addition, high-income Blacks owned 2.1 vehicles versus 0.5 vehicles for the low-income Black households. Moreover, most low-income Blacks rented their living quarters.

For low-income Black households, the top five aggregate expenditure share categories were housing (45.5 percent), total food (23.5 percent), transportation (11.5 percent), healthcare (4.1 percent), and entertainment (3.8 percent). In terms of dollars spent, high-income Black households spend about three times as much on housing and twice as much on food when compared with low-income Black households. In addition, high-income Black households spend approximately six times as much on transportation, five times as much on healthcare, and four times as much on entertainment than their low-income counterparts. Personal insurance and pensions displayed the biggest contrast, with high-income Black households spending more than 30 times as much as the low-income Black households.

Tobacco and smoking supplies was the only expenditure category in which low-income Black households spent both a higher share and a higher actual dollar outlay than their high-income counterparts.

Table 1: Expenditure Shares for Low-Income and High-Income Black Households

Expenditure Category Low-Income Black Households (%) High-Income Black Households (%)
Housing 45.5 34.2
Total Food 23.5 14.8
Transportation 11.5 13.3
Healthcare 4.1 7.5
Entertainment 3.8 8.3
Personal Insurance and Pensions 1.9 23.1
Tobacco and Smoking Supplies 0.8 0.3

Table 2: Key Characteristics of Low-Income and High-Income Black Households

Characteristic Low-Income Black Households High-Income Black Households
Average Pretax Income $6,342 $112,307
Average Family Size 1.9 persons 3.3 persons
Number of Vehicles Owned 0.5 2.1
Housing Tenure Mostly Renters Mostly Owners

Health and Life Expectancy

Black/African Americans have the second lowest life expectancy at birth of all racial and ethnic groups in the United States, after American Indians and Alaska Natives. According to the Centers for Disease Control and Prevention (CDC), in 2023, the average life expectancy at birth for Black/African Americans was 74.0 years (77.6 years for females and 70.3 years for males) compared to 78.4 years for all races, 85.2 for Asian Americans, 81.3 for Hispanic/Latinos, 78.4 for whites, and 70.1 for American Indians and Alaska Natives.

More non-Hispanic Black/African American women than men had earned at least a bachelor's degree (29.9% compared with 23.5%).

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