Black Unemployment Rate Climbs to 7.2% in July 2025, Nearly Double National Average

The U.S. Labor Department's latest report reveals a concerning rise in Black unemployment, which reached 7.2% in July 2025. This marks a significant increase from 6.3% in July 2024 and is nearly double the national average of 4.2% .

Economists view this surge as a troubling indicator of broader economic instability, particularly affecting predominantly Black communities. The Joint Center for Political and Economic Studies notes that the Black unemployment rate is the highest among major racial groups, with White unemployment at 3.7%, Hispanic at 5%, and Asian at 3.9% .

The July report also highlights a slowdown in job creation, with the economy adding only 73,000 jobs, continuing a three-month trend of sluggish growth . This deceleration, coupled with persistent racial disparities, raises concerns about the resilience of the labor market.

Particularly alarming is the impact on Black women. Approximately 300,000 Black women exited the workforce between May and August 2025, contributing to a rise in their unemployment rate to 6%, double that of White women.

Experts warn that these trends signal deeper structural issues within the economy. The Economic Policy Institute emphasizes that disparities in employment outcomes often precede broader economic downturns, suggesting that the current situation may be an early warning sign of a weakening economy.

As the nation approaches the 2026 election cycle, these developments are likely to influence discussions on economic policy, racial equity, and labor market reforms. The persistence of high Black unemployment underscores the need for targeted interventions to address systemic inequalities and promote inclusive economic growth.