ABSTRACTHistorically, the pattern of black employment has differed considerably from the pattern of white employment. In addition, the U.S. economy has undergone structural changes such that service sector employment has increased at a faster pace than has employment in other sectors. While employed blacks have made some occupational advances in non‐service areas (e.g., manufacturing), the employed work force is heavily concentrated in low wage occupations in the service sector. Neo‐classical analyses of the pattern of black employment do not consider the significance of these structural changes. Segmentation theorists do consider these changes but downgrade the importance of the service sector. This paper draws attention to the overwhelming importance of the service sector in explaining the structure of black employment in the last twenty ye