Last week, President Trump disbanded his Manufacturing and Strategic and Policy Jobs Councils due to both councils losing confidence in his leadership on diversity. While the reasoning behind the large CEO exit could be attributed to a moral reflection, it may be more of an economic necessity. According to CNBC, forty “years ago, just 6 percent of employed Americans were African-American and Hispanic. Today it’s right around 29 percent.”
With diverse employees only growing, it makes business sense for organizations to stay way from controversial topics, in particular involving race. In addition to the increase of diverse employment, despite constant rhetoric, unemployment for white Americans is actually at a 10 year low since the Recession. “Looking strictly at unemployment rates, there is no evidence that whites have suffered as a result of the growth of Hispanics and African-Americans in the workforce.”
In either case, President Trump’s comments did him no favors in regards to the business community. Interestingly enough, although Trump has lost his influence within the business world (for now), jobs and economic prosperity continues to increase. We will see if President Trump can create another avenue to connect with the business community, but for now, diversity and less controversy seems to be winning out.