Black Unemployment Jumps to 7% as U.S. Hiring Slows

Black unemployment rose sharply in September as U.S. hiring slowed to its weakest pace in months, widening concerns that the cooling labor market is hitting African American workers especially hard.

The unemployment rate for Black Americans climbed to 7.0% in September from 6.0% in August, according to the U.S. Bureau of Labor Statistics. The increase was the largest among the major demographic groups highlighted in the federal report and left the Black unemployment rate well above the national rate of 4.2%.

Employers added only 29,000 jobs during the month, far below the 90,000 gain economists surveyed by Reuters had expected. The government also revised payroll figures for July and August downward by a combined 65,000 jobs, including a revised loss of 10,000 positions in July.

The September report, released Friday, Oct. 2, is the final monthly employment snapshot scheduled before the Nov. 3 midterm election. A Reuters analysis published Monday described the broader economy as remaining near full employment by historical standards, but with hiring less dynamic and job seekers facing fewer openings.

That contrast is especially important for Black workers. The national headline rate can remain relatively low while racial gaps widen beneath it. Black unemployment is historically more sensitive to economic slowdowns, often rising sooner and faster when employers reduce hiring.

The Joint Center for Political and Economic Studies noted that the unemployment rate for Black men increased from 6.2% in August to 6.7% in September. The overall Black rate remained below its 7.5% level from September 2025, but the one-month jump signals renewed pressure on households already dealing with elevated housing, food and energy costs.

Across the economy, job growth was concentrated in relatively few industries. The share of private-sector industries adding jobs fell to 49%, its lowest level in 11 months, according to the federal data cited by Reuters. Health care continued to add positions, while federal government employment declined and several other sectors showed little change.

The unemployment rate is calculated from a household survey and monthly estimates for demographic groups can fluctuate. Still, the size of September’s increase for Black workers is notable and bears watching in future reports.

For job seekers, the data suggest a more competitive market even though mass layoffs have not become widespread. Economists have described the environment as “low hire, low fire”: many workers who already have jobs remain employed, but people entering the workforce or trying to change positions can face longer searches.

The weaker hiring numbers also reduced expectations that the Federal Reserve will raise interest rates at its Oct. 27–28 meeting. That could eventually ease some borrowing pressure, but it does not immediately resolve the disparities visible in the September employment report.

Sources: U.S. Bureau of Labor Statistics, Reuters and the Joint Center for Political and Economic Studies.

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