Black Unemployment Rate Rises to 7.5% Highest Since 2021 Across US

The unemployment rate for Black Americans has surged to 7.5% in August 2025, the highest since October 2021, signaling potential economic challenges ahead. This rise is particularly concerning as Black workers make up about 13% of the U.S. workforce, and their increasing joblessness could foreshadow a broader economic slowdown or recession. Economic experts attribute these troubling employment trends to policy decisions from the Trump administration, including significant federal workforce job cuts disproportionately impacting Black workers, especially Black women. Meanwhile, Black-owned businesses have seen growth, increasing their share from 2.7% in 2021 to 3.3% in 2022, with women leading a larger share of these enterprises compared to all businesses. However, rising unemployment among Black Americans threatens consumer spending within this community, which could harm small businesses and the broader economy, given the projected increase in African American purchasing power to $2 trillion by 2026. Economists warn that the high unemployment rates among Black workers may serve as an early indicator of a broader economic downturn, given that vulnerable populations often experience layoffs first.