Black unemployment surged to 7.5 percent by December 2025—a level that would signal a national recession—while federal job cuts and policy reversals systematically dismantled programs designed to address racial economic inequality, according to a new report released by the Joint Center for Political and Economic Studies.
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"The systematic withdrawal of protections, investments, and accountability mechanisms that have historically assisted Black communities from economic shocks combined with a substantive increase in Black unemployment all point to 2025 as a regression and recession for African Americans," the report states.
Black unemployment climbed from 6.2 percent in January 2025 to 7.5 percent by year's end, nearly double the white unemployment rate of 3.8 percent. The data for Black youth showed dramatic fluctuations, spiking from 18.6 percent in September to 29.8 percent in November before dropping to 18.3 percent in December.
Federal employment cuts hit Black workers particularly hard. The federal workforce declined by 271,000 positions in less than a year, with researchers estimating that approximately 200,000 of those lost jobs were held by Black women. Black workers comprised 18.7 percent of the federal workforce prior to these reductions—significantly higher than their 13 percent share of the overall U.S. labor force.
"If Black people had the same prime-age employment rate in 2025 that they had in 2024, then there would have been about 260,000 more prime-age Black people working," according to the report's employment analysis. "Of this number, about 200,000 would have been prime-age Black women."
The Trump administration implemented sweeping executive orders that eliminated diversity, equity, and inclusion initiatives across federal agencies, including rescinding President Lyndon B. Johnson's 1965 Equal Employment Opportunity executive order. These policy changes extended beyond federal employment to impact Black-owned businesses and economic opportunities.
