Here’s the opening scene of our new economy.
A Black mid-career professional or Black federal worker suddenly laid off in 2025 despite headlines touting a “strong” labor market.
The national unemployment rate still hovers around 4.3%. But beneath those numbers, Black unemployment has surged past 7.5%. This is the highest level since the COVID-19 recovery. And the cause is neither accidental nor coincidental.
Federal interest rate hikes, massive federal layoffs, restrictive immigration policies, and the dismantling of nearly every DEI program, combined with an already fragile safety net that disproportionately harms Black workers, have all fed this crisis.
Black unemployment was around 6% in November 2024. It jumped to 7.2% in July 2025, 7.5% in August 2025, and is almost certainly higher now, though the federal government conveniently stopped publishing monthly employment data. God forbid Americans get information about what else is going south.
The number of Black adults ages 25–54 who are unemployed is also at a record high. Nonprofit and advocacy reports show Black youth joblessness around 24%, the highest of any race or age group.
Black women saw especially sharp rises. Roughly 300,000 Black women exited the labor force between February and April 2025 alone.
When we include those who stopped looking for work, the actual unemployment rate for Black women is over 12%.
Structural racism has always pushed Black unemployment higher. Black workers are over-represented in lower-paying, less secure sectors, such as service, care work, retail, and public-sector roles, and are therefore the first hit in downturns.
But this time isn’t just another cycle.
The aggressive dismantling of DEI programs has gutted key protections and opportunities for Black workers.
The mass federal layoffs have wiped out a wide swath of jobs, many historically held by Black Americans. The IRS alone is cutting 25% of its staff, beginning, as if on cue, with its civil-rights/equity office.
Federal job cuts and “government efficiency” measures in 2025 triggered tens of thousands of layoffs per month, driven largely by federal agencies.
Because Black workers, especially Black women, are actually over-represented in federal employment, these cuts landed squarely on Black communities.
Federal jobs have long been a reliable pathway into the middle class for Black workers. Gutting them erodes that ladder and suppresses revenue for Black-owned businesses in communities built around federal employment.
Major corporations rolled back DEI programs in 2024–25 under political pressure and legal threats. This has disproportionately harmed Black workers, especially Black women.
Reports show tens of thousands of DEI-linked positions, or roles commonly held by Black women, have been slashed, including across federal agencies.
But it’s not just the erasure of DEI roles.
Removing internal advocates for equity means fewer checks on discrimination and pay gaps. It narrows recruitment pipelines from HBCUs and other Black-serving institutions. The new message to employers is unmistakable: Diversity is optional.
Higher tariffs and trade disruptions have also hit Black workers harder than others. Rising costs for manufacturers and exporters have driven job losses in manufacturing and related sectors, areas where Black women have recently seen steep employment declines.
Restrictive immigration policies claiming to “protect American jobs” have destabilized industries like construction, agriculture, and services, all sectors where many Black workers have been employed.
Tariffs raise prices that fuel inflation, which then triggers more monetary tightening, resulting in yet another round of disproportionate harm to Black workers.
The economic fortunes of Black America have fallen sharply in 2025. Not only in unemployment, but also in Black homeownership and median household income, both of which have declined. Meanwhile the racial wealth gap has widened, even as white net worth remains remarkably strong.
To fix this crisis, we need explicit racial-equity assessments of monetary policy.
We need lower interest rates.
We should reverse harmful federal cuts and rebuild public-sector career ladders. That means reinstating and expanding high-quality federal and state jobs in agencies that serve the public.
We must target hiring and advancement for Black workers, especially Black women, into stable, middle-income public roles.
The government must stop attacking organizations that provide capital and investment for Black entrepreneurs under the false banner of fairness.
And above all, we must rebuild and protect diversity, equity, and inclusion infrastructure. That requires restoring DEI offices and training in federal agencies and encouraging corporate DEI through procurement rules, transparency, and civil-rights enforcement.
The public and private sectors should strengthen partnerships with HBCUs and Black-serving institutions to rebuild real hiring pipelines. Without fear that the government will sue private companies over it.
We should invest in green infrastructure and public health with the explicit goal of ensuring people, including Black workers, have meaningful reentry into the job market.
And while doing all of these things, we must strengthen unemployment insurance, SNAP, and rental assistance to keep Black families afloat.
There is deep irony in the government’s assault on diversity.
Leaders insist race no longer matters. Then, when the public nods along and says, “Yes, let’s stop talking about race,” Black Americans are once again pushed to the margins.
We can’t keep pretending we live in a post-racial world where systems magically stop harming Black citizens. The proof is right here in the statistical pudding.
At a certain point, it’s not an unintended consequence. It’s the plan.
This post originally appeared on Medium and is edited and republished with author's permission. Read more of Jeffrey Kass' work on Medium.