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Despite a Strong Labor Market Recovery, American Indians and Alaska Natives Continue to Face Barriers to Full Economic Participation

Key Points:
Native workers have benefitted from the strong labor market recovery, but disparities persist.
Recent federal investments have helped expand economic opportunity and security in Native communities, including the Infrastructure and Investment Act, the CHIPS and Science Act, the Inflation Reduction Act and the American Rescue Plan which made the single largest investment in Native American Communities.
The typical Native worker makes less per year than the typical white worker and is more likely to live below the poverty line.
American Indians and Alaska Natives are less likely to own their homes, contributing to broader wealth inequities.

American Indians and Alaska Natives (AIAN) have seen their employment rate and prospects in the labor market improve since the pandemic recession. In April 2020, the jobless rate for people identifying as American Indian or Alaskan Native was nearly double the overall unemployment rate. This was largely because Native workers were more likely to be employed in service jobs that were hit hardest by the pandemic and its economic effects. However, the ongoing pro-worker recovery has reduced the jobless rate for Native workers by more than 70% and has shrunk disparities in the labor market.

The American Rescue Plan made the single largest investment in Native American communities in American history, including $31 billion allocated to address the immediate economic impact and public health fallout of the coronavirus pandemic. The bipartisan Infrastructure Investment and Jobs Act also included $11 billion for tribal entities to help address outstanding barriers to economic opportunity and security in tribal communities, while the CHIPS and Science Act provided funding to strengthen STEM education at tribal universities and colleges. And the Inflation Reduction Act’s $700 million investment in tribal climate resilience and green energy will continue to spur job growth and lower energy costs in Native communities.

Despite the strong labor market recovery, Native workers and families continue to face structural barriers that result in lower earnings, higher poverty rates and lower homeownership rates. The legacy of removal, forced assimilation and unkept obligations are reflected in the nature and magnitude of these economic disparities. More targeted investments and partnerships between the federal government and tribal governments will be required to continue to expand economic participation and opportunity for Native workers and families