The unemployment rate for Black Americans is on the rise, according to the latest jobs report from the Labor Department.
Released earlier this month, according to the report, the unemployment rate for Black Americans hit 7.2% in July. The number was marked as being up by 0.4% from the month before. In comparison, last year, the rate was approximately 6.3%.
Black women, in particular, have been impacted by the state of the job market. According to the report, the rate of unemployment amongst Black women has increased from 5.5% to 6.3%.
With the change, economists are pointing to the increased firings amongst federal workers as a main proponent of the higher unemployment rate. Approximately 19% of all federal workers are Black, according to the Economic Policy Institute, and have been affected by the Trump administration’s federal job cuts.
As more Black Americans are losing job positions, economists predict a future with a worsening economy, pointing to previous economic downfalls that have begun with higher unemployment rates amongst Black Americans due to “equity issues.”
“The labor market is slowing down,” said the chief economist at the Center on Budget and Policy Priorities, Gbenga Ajilore, per USA Today. “It’s one of those things where looking at Black unemployment rate and Black labor market indicators told us this story was coming.”
The latest report marking an increase in unemployment amongst Black women comes months after NBC Money reported the unemployment rate for Black women dropped.
Studying the employment patterns in December 2024, the report found that Black women had the highest employment rate of any demographic, dropping the unemployment rate from 5.9% in November to 5.4%.
Black women were also previously getting involved in the U.S. workforce at higher rates. Per the report, the rate of Black women joining the U.S. workforce or actively looking for a job increased to 62.4% in December.
Since then, however, according to MSNBC, nearly 300,000 Black women have decided to leave the labor workforce. Per the report, sweeping federal policy choices, such as the cutback of federal workers where Black women make up over 12% of the overall workforce, are key contributors to this rapid drop in employment.
With the job cuts amongst Black women, a large number of households are expected to be negatively affected. According to Fast Company, over 51% of households with children are supported by breadwinner mothers.
