EEOC data is goldmine for job stories

A Wall Street Journal investigation of EEOC employment data from over 40 million workers revealed that Black workers were the only ethnic group to suffer net job losses during the 1990-91 recession, losing 59,479 jobs while other groups gained employment. The analysis, which required extensive FOIA requests and verification calls to 400 major federal contractors, has prompted civil rights leaders and a congressional investigation into the companies involved.

The 1990-91 recession left the impression that many jobs simply disappeared, but a recent computer analysis by the Wall Street Journal shows that among ethnic groups only blacks suffered a net job loss. Journal staffers Ed Soldessy and Rochelle Sharp examined Equal Employment Opportunity Commission (EEOC) reports from 35,242 companies covering more than 40 million workers. The law requires that businesses with 100 or more employees annually report the number of women and minorities they hire.

Businesses with 50 or more employees must also file reports if they have a government contract of $50,000 or more. The Journal's computer analysis of these records showed that blacks lost a net 59,479 jobs during the study period. Asians and Hispanics gained 55,104 and 60,040 jobs respectively, while whites gained 71,444 jobs. When the news hit Washington, angered civil rights leaders and members of the Black Caucus pressed for an immediate investigation into the companies involved.

The article itself capped hundreds of hours spent locating the tapes, analyzing the data and verifying reports. The Journal originally obtained 9-track computer tapes containing the EEOC data, but found that the fields containing company names had been deleted. Department of Labor officials claimed the data could not be released without permission from the companies involved. When contacted by the Department, most companies objected.

The Journal appealed the decision, but still no companies responded. After filing three separate Freedom of Information Act (FOIA) requests, the Journal succeeded in obtaining the names, addresses and summary employment filings of the nation's 400 largest federal contractors in terms of market capitalization. The appeal process on these filings alone lasted six months. "I certainly didn't expect that," said Sharpe.

"But it was worth sticking with." After Souldessy and Sharpe analyzed the data, a team of reporters began the time-consuming process of calling all 400 companies to verify the data. During verification Sear, Roebuck & Co. indicated the firm had provided incorrect data to the government. Although the company said the mistake exaggerated blacks' proportion of job loss, the revised data still showed blacks losing jobs at a disproportionate rate.

As a result of the story and the resulting response among minority activists, Congressman Julien Dixie of California has vowed to launch an investigation into the matter.