Unemployment among Black Americans rose to 7.2% in July, the highest level recorded since the height of the Covid-19 pandemic in October 2021.
This figure stands in stark contrast to the national average of 4.2%, based on fresh data released by the U.S. Department of Labor on August 1.
Black women have suffered the greatest impact, with more than 300,000 losing their jobs in the first half of the year.
Historically, increasing unemployment within the Black community has signaled a wide range economic distress. A larger share of Black workers are in low paying or temporary jobs compared to white workers, making them more likely to be let go when businesses begin cutting back.
“Black workers, and particularly Black women, show up as a canary in the coal mine, giving a picture of what may happen to everyone else later,” said Jessica Fulton, a senior fellow at the Joint Center for Political and Economic Studies.
President Donald Trump’s tariff policies have also raised business costs, causing some employers to pause hiring, according to recent surveys from the U.S. Federal Reserve. Experts warn that the trend in Black unemployment may be an early sign of a looming recession.
