Black Unemployment Rate Is Rising, But Here’s Why The Rest of the Country Will Pay Big Time

Ever since President Donald Trump stepped back into office, economists have expressed growing apprehension about the economy. Now, a new report from the Department of Labor suggests there’s one telltale sign more Americans should be worried about: the rising unemployment rate for Black Americans.

According to the most recent jobs report from the Labor Department, Black folks make up 7.2 percent jobless Americans, up from 6.3 percent last year. This is above the national average of 4.2 percent. What’s even more shocking is the 13 percent jump in the rate in just one month– from May to June. And Black folks aren’t the only groups losing jobs…

Other ethnic groups are seeing small increases in joblessness. Asian unemployment increased by 0.4 percent. And the Hispanic or Latino unemployment rate was up 0.2 percentage points in July, the same report found.

This recent report came on the heels of Trump firing Bureau of Labor Statistics Commissioner Erika McEntarfer last week. He claimed her findings could not be trusted. Now, it seems the Labor Department’s numbers are pointing to one thing: America has a problem.

Black Unemployment on the Rest of America

Economists told USA Today the recent report is concerning because Black folks are often the first to be hit by economic downturns in the nation. So while many could take a look at the Labor Department’s findings and not even bat an eye, this could be the start of a bigger problem.

“The Black unemployment rate is always the first to go up. That’s always the canary in the coal mine,” said Gbenga Ajilore, chief economist at the nonpartisan Center on Budget and Policy Priorities.

Already, Americans are grappling with Trump’s total blitz on the government. His cuts to several federal agencies like USAID, FEMA and the Department of Education means more Americans are getting laid off at record speed. NPR reported that nearly 60,000 federal employees have been fired under the Trump administration in the last six months.

Black people make up around 18 percent of the current federal workforce, according to a May National Women’s Law Center report. And they just so happen to be concentrated in the departments experiencing the most job cuts. “This has been a place where Black people are disproportionately more likely to get jobs – better jobs, well-paying jobs,” economist Ajilore continued to USA Today.  

On top of all of this, Black workers and other minority groups continue to reel from Trump’s anti-DEI (diversity, equity and inclusivity) push. We previously reported on the onslaught of businesses that have completely axed their DEI programs. Without them, job opportunities for all minority groups– not just Black folks– are becoming scarce.

Of course, there are more factors than simply DEI and mass firings in the government. A recent survey by the National Association for Business Economics found companies are delaying their hiring processes in direct response to growing trade tensions. After Trump’s trade war with Mexico, Canada and China all on top of him imposing tariffs on countries across the world without warning, economists are scrambling.

The stock market continues to fluctuate in response to Trump, and Americans are preparing to deal with the consequences. Whether its an increase in grocery prices or dealing with a rising unemployment rate, Americans are bracing for impact as the Trump administration continues to shift the blame.