Black Women Unemployment Hits 7.5% Highest Since 2021 Amid Federal Job Cuts

Recent labor statistics reveal a sharp rise in unemployment among Black Americans, with Black women disproportionately affected, reaching a 7.5% unemployment rate in August 2025—the highest since 2021. This increase significantly outpaces the national rate of 4.3%, with Black women experiencing a rise from 5.4% to 7.5% within eight months, while the overall unemployment rate barely moved. Economists warn that these rising rates among Black workers, including a staggering 24.8% unemployment for Black teenagers, act as an early warning signal for an impending economic downturn. A key contributing factor is the Trump administration's cuts to the federal workforce, which has shed 97,000 jobs, disproportionately impacting Black employees who make up nearly 19% of federal workers, particularly in agencies like USAID, the Consumer Financial Protection Bureau, and the Department of Education. Experts highlight that Black workers are often the first to be laid off and the last to be rehired, underscoring structural labor market inequities exacerbated under current policies. This trend signals broader economic challenges ahead, as rising Black unemployment rates have historically predicted wider economic distress.