Why Rising Black Unemployment is a Warning Sign for America’s Economy

September 8, 2025

The August jobs report revealed a concerning trend with Black unemployment reaching 7. 5%, the highest level since October 2021, following consecutive increases in June and July. Economists view rising Black unemployment as a potential indicator of a broader economic slowdown, with Diane Swonk noting that Black Americans are often the first to experience layoffs during economic downturns.

Who is affected

Black workers facing increasing unemployment rates (7.5% in August)
Black communities experiencing economic ripple effects
Black-owned small businesses (like Joe and Monroe, Essence Tree, Regally Insane, and Old Hillside Bourbon Company)
Black consumers who may reduce discretionary spending
The broader US economy
The federal workforce, which is 18.7% Black workers

What action is being taken

Black business owners are adjusting their business strategies (e.g., Nailah Queen planning more community outreach and product giveaways)
Some Black business owners are reducing contracted workers (like Charmaine Gibbs-West)
Business owners are focusing on maintaining customer relationships during economic uncertainty
Black entrepreneurs are viewing business ownership as a reliable opportunity despite economic challenges

Why it matters

Black Americans make up about 13% of the US workforce
Black Americans are projected to have $2 trillion in buying power by 2026
Rising Black unemployment can indicate broader economic slowdowns
Black Americans historically recover more slowly from job losses
Black unemployment impacts multiple industries including retail, housing, and healthcare
The situation contradicts political claims about economic improvements for Black Americans
58% of Black Americans consider supporting Black-owned businesses important for furthering equality

What's next

No explicit next steps stated in the article

Read full article from source: The San Diego Voice & Viewpoint