The Bureau of Labor Statistics’ August jobs report, released on Sept. 5, revealed concerning trends for Black Americans. Black women, in particular, saw a sharp rise in unemployment, while Black employment as a whole continues to face major setbacks.
The report highlighted that the unemployment rate for Black women jumped to 6.7% in August, up from 6.3% in July. Similarly, the unemployment rate for Black men increased slightly to 7.1%, up from 7.0% the previous month. As a result, the overall unemployment rate for Black Americans reached 7.5%, a figure significantly higher than that of other racial groups.
In stark contrast, other racial groups saw relatively little change in their unemployment rates. The unemployment rate for Asian Americans decreased slightly to 3.6% in August, down from 3.9% in July. For white Americans, the unemployment rate remained steady at 3.7%, while the rate for Hispanics held at 5.3%. The overall unemployment rate across all groups remained relatively unchanged, holding steady at 4.3% with 7.4 million unemployed individuals.
While total nonfarm payroll employment saw a slight increase of 22,000 jobs in August, the broader job market remained largely stagnant, with little change since April. Losses in government, mining, and oil and gas extraction offset job gains in sectors like healthcare. However, long-term unemployment (lasting 26 weeks or more) rose above 25% of all job seekers, a troubling trend not seen since the pandemic in 2021.
What’s behind the surge in Black unemployment? Is it a warning sign?
The dramatic increase in Black unemployment has raised questions about underlying causes, particularly given that the overall unemployment rate for all workers has not seen a similar spike. Experts, such as Michelle Evermore, a member of the National Academy of Social Insurance, point to cuts in the federal workforce as a significant factor. Since January, the federal government has reduced its workforce by 97,000 positions, with a large portion of these jobs historically filled by Black workers.
“The federal government saw the biggest losses over the year, and the federal workforce tends to be very diverse. There’s also veterans’ hiring preference,” which has attracted many workers of color to federal jobs, Evermore explained to Marketplace during an interview published Sept. 7.
Black women in the federal workforce have taken a considerable hit. As Ali Velshi noted in his MSNBC segment on Sept. 7, over 306,000 Black women have lost their jobs since President Trump took office in January, leading to a $37 billion loss to the economy. The driving factor behind this is attributed to Trump’s significant budget cuts to federal agencies, many of which employed a large share of Black women, particularly in public sector jobs.
These jobs were critical for Black women, who make up over 12% of federal employees, offering civil service protections and more equitable pay compared to other sectors, which were especially important given the persistent wage gap that Black women face. For example, the Department of Education had 28% Black women employees but saw cuts of nearly 46%. In contrast, agencies with predominantly white staff, such as the Department of Energy, faced significantly smaller cuts.
Black women also play a significant role in the private sector, particularly as Diversity, Equity, and Inclusion (DEI) officers. However, as companies face political pressure to reduce DEI initiatives, these positions are also being cut, further affecting Black women’s job security.
Economists believe that the troubling trend may foreshadow a larger economic slowdown that will eventually affect other sectors, an issue that could harm the country’s innovation and overall economic growth.
“This structural inequality among Black women will eventually create a huge deterioration in the entire economy as they don’t consume as much … [and] this contagion, I believe, will spill out throughout the entire economy,” said Democratic Congresswoman Gwen Moore of Wisconsin during an interview with Velshi on Sunday.
New School Economics Professor Darrick Hamilton warned, “The adage ‘Black people are the first fired, last hired’ is indicative of what might come for the rest of us.”
As we look ahead, the question remains: will the broader labor market follow in the footsteps of rising Black unemployment, or will these disparities be addressed before they grow even more pronounced?
SEE MORE:
Unemployment Rate Remained Stubbornly High For Black Women In June
Economists Hail September Jobs Report Despite Black Unemployment Rising
Unemployment Spike For Black Americans Signals Broader Economic Risks, Experts Warn
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