Table of Contents
- Black Unemployment Trends: A Troubling Reversal
- Why This Time Is Different
- Who Is Being Hit Hardest?
- The Role of Federal Layoffs
- DEI Rollback and Private-Sector Impact
- What Can Be Done?
- Sources
Black Unemployment Trends: A Troubling Reversal
After hitting a historic low of 4.8% in 2023, Black unemployment has surged to 7.5% as of October 2025—a stark reversal that’s raising alarms among economists and policy experts. Meanwhile, white unemployment has slightly declined to 3.7%, widening the racial employment gap that has persisted for decades.
This isn’t just another cyclical downturn. Experts say the current spike in Black unemployment is being driven by a unique combination of federal workforce cuts, the rollback of diversity initiatives, and a broader retreat from racial equity commitments made during the post-2020 reckoning on race.
Why This Time Is Different
Historically, Black joblessness rises during recessions—but this time, the economy isn’t in freefall. Instead, targeted policy shifts are accelerating the decline in opportunities for Black workers.
“The speed at which things have changed, in such a dramatic fashion, is out of the ordinary,” said Valerie Wilson, director of the Program on Race, Ethnicity and the Economy at the Economic Policy Institute. “There’s been such a rapid shift in policy, rather than something cyclical or structural about the economy.”
Who Is Being Hit Hardest?
Data shows that Black women in professional services—particularly in human resources and administrative roles—are experiencing disproportionate job losses. Entry-level opportunities are also vanishing, especially in the public sector.
Sherri Marshall, a 26-year-old psychology graduate from Los Angeles, exemplifies the struggle. Despite holding a degree and relevant experience from roles at a rental car company and a homeless shelter, she’s been repeatedly laid off and now works weekends at a farmers’ market while building a freelance portfolio.
“It’s always like high-labor, low-paying jobs, nothing sustainable,” Marshall said. “It’s harder for me to get more technical and higher-skilled jobs, despite being qualified.”
The Role of Federal Layoffs
Over 200,000 federal workers have been cut since early 2024, with layoffs continuing through a partial government shutdown. Because Black workers are overrepresented in federal employment—thanks in part to decades of civil service reforms and affirmative action policies—they’ve borne the brunt of these cuts.
“The federal government is one of those places people are able to get an entry-level job,” said Gbenga Ajilore, chief economist at the Center on Budget and Policy Priorities. “That’s a whole industry that’s closed to new hires.”
While state and local governments have tried to absorb some of the displaced workforce, competition has intensified, leaving many qualified candidates like Marshall without options.
DEI Rollback and Private-Sector Impact
Beyond government cuts, the Trump administration’s aggressive rollback of Diversity, Equity, and Inclusion (DEI) mandates has rippled into the private sector. Federal contractors—once required to implement equitable hiring practices—have been ordered to stop pursuing racial equity goals.
Research shows these DEI practices were effective: outreach to HBCUs, structured interview panels, and diverse hiring slates significantly increased Black representation in mid- and senior-level roles. Without them, implicit bias and network-based hiring are returning to the forefront.
“A lot of people get their jobs through networking,” said Janel Belovette Jenkins of the Los Angeles Black Worker Center. “Part of our role is to create the programs that will create the network that connects highly skilled, qualified workers to employers who might not have initially seen them.”
What Can Be Done?
Economists and advocates are calling for renewed federal action:
- Restore DEI guidelines for federal contractors
- Lift the federal hiring freeze to reopen entry-level pathways
- Strengthen minimum wage and overtime protections for domestic workers (70% of whom are Black or Hispanic women)
- Support community-based job placement programs like the Black Worker Centers
Representative Ayanna Pressley recently urged the Federal Reserve to prioritize full employment for marginalized groups. The Fed responded with an interest rate cut in September 2025—the first of the year—with hints of more to come.
Still, without targeted policy interventions, experts warn that the gains Black workers made during the post-pandemic recovery could be permanently erased.
