Black Women’s Unemployment Is Rising Fast—And It’s a Bad Sign for Everyone

Black women have long been the backbone of the American economy. They work more hours than almost any other group of women, take on roles that keep communities running, and have some of the highest labor force participation rates in the country. Yet they continue to face some of the deepest and most persistent inequities in the job market. The latest data from the U.S. Bureau of Labor Statistics shows that after years of progress Black women’s unemployment rate is once again on the rise. It is happening quietly while the national numbers make the job market look healthy.

In January 2021 the country was still reeling from the economic damage of COVID-19. Black women’s unemployment was at 8.5 percent, meaning more than one in twelve Black women were without work. That was almost twice the rate for White women and well above the national average. The pandemic’s hit was severe because Black women are overrepresented in industries like hospitality, retail, education and health care—sectors that suffered some of the biggest job losses during lockdowns.

As the economy reopened in late 2021 and 2022 job growth returned and the gains were significant. Black women’s unemployment fell to around 4.8 percent by late 2021 and in March 2023 it reached an all-time low of 4.2 percent. Economists pointed to this as proof that when the economy is strong Black women can make historic gains despite the barriers they face. It looked like the longstanding gap between Black women’s unemployment and the national average might finally start to close.

The improvement did not last. By mid-2025 unemployment for Black women had jumped back up to 6.3 percent. That is nearly double the unemployment rate for White women at just over 3 percent and 1.7 times higher than the overall U.S. unemployment rate of 4.2 percent. Between March and May 2025 Black women’s unemployment rose by a full percentage point while rates for most other groups stayed the same. For three straight months in the summer of 2025 Black women’s unemployment has hovered at or above six percent making them the only major demographic to see such a sharp and sustained increase. Economists call this a warning sign because historically economic downturns show up in Black women’s employment first before spreading to other groups.

The reasons behind the spike are rooted in structural inequities. Public sector cuts in 2025 hit Black women especially hard. Black women make up about twelve percent of the federal workforce compared to only seven percent of the private sector. When budget tightening led to layoffs in agencies like the Department of Education, Health and Human Services, and HUD thousands of Black women lost stable government jobs. Between February and March 2025 alone 266,000 Black women lost employment. Corporate America also pulled back on Diversity, Equity, and Inclusion initiatives in the past two years, a sector where Black women were heavily represented. When those roles disappeared so did the jobs for many of the women leading that work.

There is also the fact that when Black women lose jobs they tend to be unemployed longer than anyone else. As of June 2025 the average length of unemployment for Black women was more than six months, the highest of any demographic group. That reflects a mix of hiring discrimination, lack of access to networks that lead to better jobs, skills mismatches, and the challenge of balancing caregiving with job searching. The industries where Black women are most concentrated, like retail and hospitality, are also more vulnerable to slowdowns, meaning that even small shifts in economic conditions hit harder and take longer to recover from.

In early 2025 another statistic caught the attention of labor experts. Around 300,000 Black women dropped out of the labor force in a span of three months. This number included both women who were officially unemployed and actively looking for work as well as those who stopped looking entirely. Many of these exits were tied to the same public sector cuts and corporate layoffs that drove up unemployment. Others were forced out because of caregiving demands or lack of affordable child care. Despite its scale the story barely made headlines in mainstream media though analysts warned that it was a clear sign of economic strain that should alarm policymakers.

This is not just a problem for Black women. When Black women’s employment starts to decline it has ripple effects across the economy. Nearly 80 percent of prime working-age Black women are part of the labor force, a higher rate than any other female demographic. They are more likely to be primary breadwinners and hold essential jobs that keep public systems and local economies running. When those jobs are lost it impacts families, communities, and the national economy. The fact that unemployment for Black women is rising while the national unemployment rate remains near historic lows should be taken seriously by lawmakers and business leaders.

The period from 2021 to 2025 tells two stories. It shows how quickly Black women can make economic gains when the job market is strong and how quickly those gains can disappear when conditions shift. Their unemployment rate went from pandemic highs to historic lows and then back up again in just four years. If the pattern continues without intervention it will widen racial and gender gaps in economic security. Targeted hiring efforts, restoration of public-sector jobs, and investment in child care and job training could help stop the slide. Without them the warning signs flashing in Black women’s unemployment data could soon become a much bigger problem for the entire economy.