Black, Indigenous, and People of Color (BIPOC) workers

The findings and views expressed in this report do not necessarily reflect the views of the sponsor. Economist Impact bears sole responsibility for the contents of this report. While every effort has been taken to verify the accuracy of this information, Economist Impact cannot accept any responsibility or liability for reliance by any person on this report or any of the information, opinions, or conclusions set out within.

This research was led by Kati Chilikova. The research team consisted of Luiza Navarro, Divya Sharma Nag, Valentina Vos, and Roshni Saleem Chagan. The report was authored by Paul Tucker, and copy edited by Maria Ronald. Latifat Okara oversaw and directed the research program.

Black, Indigenous, and People of Color (BIPOC) workers

The US population is becoming more racially and ethnically diverse, particularly among younger generations.² As a result, an overwhelming proportion of job market entrants are BIPOC workers. About 94% of the jobs added by Standard and Poor’s (S&P) 100 companies in 2021 went to non-White workers. Although this figure seems high relative to their share of the population, it reflects the overall decline in the population of White working-age adults in the US, largely due to aging.³ As BIPOC workers become the majority in the US workforce, racial inequities in the labor market represent a rising liability for employers.⁴ BIPOC workers face a raft of unique challenges related to racism and ethnic discrimination, systemic barriers, and cultural stigma; these issues can vary by location in the US, yet they consistently have an adverse impact on employee well-being and mental health.⁵

A 2021 survey revealed that 24% of Black and Hispanic employees reported experiencing workplace discrimination in the preceding year, as compared with 15% of White employees and 16% of Asian employees. Notably, 75% of Black employees attributed this discrimination to their race or ethnicity, as compared with 61% of Hispanic employees and 42% of White employees.⁶ Microaggressions, subtle, indirect, and often unintentional—yet pervasive—acts of racism and discrimination foster a toxic work culture and perpetuate inequality.⁷ Additionally, people of color frequently lack access to professional networks and avenues that enhance career prospects, contributing to wage gaps. For example, Black workers earn 76 cents to every US dollar earned by White workers, with these disparities apparent from the age of 16.⁸

Workers of color continue to feel the mental health impacts of discrimination and inequity

Discrimination based on race and ethnicity in the workplace, and beyond, wage a severe toll on the mental health of people of color. For example, Black and Hispanic workers, alongside women, Gen Z, and LGBTQ+ employees, experience worse mental health outcomes and receive less supportive responses when discussing mental health at work as compared with their White, cisgender, heterosexual counterparts.^10,11,12 They also exhibit lower job satisfaction, trust, pride, and intent-to-stay with their employer.^13,14,15

Access to care is often an issue. Contributors to a workshop we assembled for this research pointed out that BIPOC workers face limited access not only to mental health services, but also to comprehensive health resources in general, primarily due to financial barriers, difficulties in accessing care, and a shortage of culturally competent care providers within organizations. Major depression often goes undiagnosed and untreated at disproportionately greater rates in predominantly Black and Hispanic communities in comparison to White communities, highlighting clear inequities in access to quality and culturally responsive mental health care.¹⁶

When it comes to mental health in the workplace, there are noticeable differences in attitudes along racial and ethnic lines. For instance, fewer Black and Hispanic workers feel comfortable talking to coworkers about mental health, believe that their company’s leadership is genuinely empathetic, perceive their company as offering flexible work schedules to support mental health, or view their work environment as open and inclusive, or conducive to conversations about mental health.¹⁷ Furthermore, BIPOC employees often find themselves isolated at work, especially where diversity and inclusion efforts are lacking.

Black workers are also more likely to say that they encounter difficulty in discussing mental health in the workplace due to their race/ethnicity, cultural background, and gender identity.¹⁸ “Unfortunately in places that are predominantly White in terms of the employee makeup, it’s sometimes difficult for White employees to understand the type of struggles that [BIPOC employees] are navigating, because they’re dealing with systemic oppression, and [White employees] don’t see it, they don’t understand it—it’s not something that they’re experiencing,” says Amber Bam Cabral, an Inclusion Strategist and Founder of Cabral Co., an inclusivity-focused leadership and communications firm.

BIPOC employees are typically expected to share the responsibility for addressing inclusivity issues by, for example, leading mentorship programs, which can be emotionally draining. Meanwhile, White managers often hesitate to engage in these discussions due to fear of saying the “wrong” thing. This is unfortunate and unproductive because employees who feel supported by their employer in terms of their identity report better mental health outcomes.^19,20

The mental health impact of enduring inequality

Strategies that combat discrimination and promote diversity, equity, and inclusion in the workplace are essential for supporting the mental health of BIPOC employees. Access to culturally competent mental health resources and the creation of an inclusive work environment are crucial for addressing the unique, and often invisible, challenges faced by people of color. In addition, valuing diverse perspectives and implementing culturally sensitive mental health policies and programs that tackle systemic issues are also critical.

Creating safe spaces for discussing mental health and experiences of discrimination can help to mitigate the negative effects on emotional well-being for all workers, and more so for those who traditionally feel less supported.²¹ Support networks, counseling services, and training in stress management and resilience are essential to helping BIPOC employees manage the cognitive load associated with discrimination and bias.²² Health and wellness programs tailored to the specific needs of under-represented groups are critical for promoting their overall well-being.²³

Companies must also facilitate open conversations about diversity and inclusion, as well as encourage all workers, especially leaders, to self-educate and share the responsibility of furthering diversity and inclusion in the workplace. “Listening sessions,” for example, can provide an open platform for dialogue, thereby reducing feelings of isolation and increasing understanding among all employees, including those managers who may hesitate to discuss “sensitive” topics. Companies should also ensure that they address and break down barriers that make people of color feel vulnerable when seeking assistance. Training and awareness are key: managers should be aware of these obstacles and recognize the signs.

One report suggested six factors that employers should consider when designing mental health programs that cater to workers of minority racial or ethnic backgrounds: