Black unemployment surges again: Here's how Trump administration policies are deepening the divide

For decades, Black workers in the United States have faced structural barriers that make economic recoveries slower and more uneven. Two years after reaching a record low, joblessness among African Americans is climbing again, a trend economists warn is emblematic of persistent disparities in the labor market.

The African American unemployment rate has risen from 6% to 7.5% over the past four months. By contrast, the rate for white workers ticked down slightly to 3.7%, The New York Times reports. While the economy shows signs of slowing, the Trump administration ’s policies targeting diversity programs and cutting the federal workforce have added another layer of challenge for Black workers.

A historical gap

Since the 1970s, when the federal government began tracking unemployment by race, Black unemployment has consistently hovered around twice the rate of white workers. Researchers attribute this persistent gap to a combination of factors: unequal access to quality education, the legacy of mass incarceration, and systemic discrimination across generations.

The Trump administration’s first term initially brought a strong economy that created jobs for Black workers, but many of these gains were erased during the COVID-19 pandemic. While pandemic-era public subsidies cushioned the immediate blow and facilitated a quick rebound in hiring, the expiration of these programs in 2024 marked a turning point. Last year, Black households were the only racial group in which median income fell and poverty rates rose, according to data from the US Census Bureau, The Times reports.

Who is most affected

Federal data analyzed by the director of the Program on Race, Ethnicity, and the Economy at the Economic Policy Institute, shows that job losses are concentrated among Black women working in professional services, including human resources. The federal workforce, already affected by hiring freezes and mass layoffs, has disproportionately shed Black employees.

The Trump administration’s broader policy changes may exacerbate these challenges. Proposals from the Department of Labor to roll back minimum-wage and overtime protections for domestic workers, for instance, would directly reduce income for many Black employees.

Economic relief and remaining hurdles
Some economic indicators offer limited optimism. The Federal Reserve lowered interest rates in September for the first time this year and signaled that further reductions could follow. Lower borrowing costs may stimulate hiring, but analysts caution that policy barriers could continue to prevent Black workers from fully benefiting, according to The Times.

The intersection of a slowing economy, targeted federal policy, and historical disparities means that Black unemployment is likely to remain elevated longer than the broader population. The consequences extend beyond immediate income: persistent joblessness can hinder wealth accumulation, reduce opportunities for professional advancement, and perpetuate intergenerational inequality.

A broader reflection
The rise in Black unemployment reflects the ongoing structural challenges facing historically marginalized groups in the US. While economic cycles affect all workers, policy decisions, particularly those that influence federal employment, workplace protections, and diversity initiatives, have a disproportionate impact on African Americans.

Without targeted interventions, gains achieved during periods of prosperity may be fragile, leaving the communities that need them most vulnerable when conditions deteriorate.