Soaring Black Unemployment Rates Reach 5-Year Peak, raising questions if Diversity, Equity, and Inclusion (DEI) Policies are now Tainted Reputations?

Soaring Black Unemployment Rates Reach 5-Year Peak, raising questions if Diversity, Equity, and Inclusion (DEI) Policies are now Tainted Reputations?

In the United States, the current state of racial equity in the labor market for Black professionals remains a significant challenge, as demonstrated by rising unemployment rates, occupational segregation, and limited returns on educational attainment.

Black unemployment has seen a notable rise

The latest July jobs report reveals that Black unemployment has reached 7.2%, its highest level in nearly five years. Black women face disproportionate unemployment increases, with some states reporting rates close to 10% for Black workers.

Educational success does not always translate into equitable employment outcomes

Despite being one of the most educated groups, Black women earned 70% of master’s degrees awarded to Black students in 2020–2021, the academic success rarely translates into equitable employment outcomes due to systemic barriers like occupational segregation, wage disparities, and hiring bias. Hiring bias accounts for up to 52% of the racial employment gap.

Decline in DEI efforts and federal job cuts

Structural inequities are compounded by federal job cuts and the withdrawal of DEI initiatives. Over 69,000 federal positions were cut by mid-2025, disproportionately affecting Black women employees in roles related to DEI, administration, and human resources. The political and policy environment has shifted since 2020, leading many agencies and companies to halt or scale back DEI efforts substantially.

Impact on Black men's employment and earnings

Educational gains have less impact on Black men's employment and earnings compared to other groups. The employment boost from a bachelor’s degree for Black men is smaller, and wage premiums for college graduates among Black men are significantly lower than for White or AAPI men, reflecting ongoing labor market disparities.

Black-owned businesses thriving amidst challenges

Amidst these challenges, Black-owned businesses continue to make a significant contribution to the U.S. economy. The number of Black-owned businesses in America is 3.7 million, employing over 1.2 million people and generating $211.8 billion in revenue. However, the growth in this sector has not been without its own set of challenges.

The reversal in commitment to racial equity

Since 2020, there has been a reversal in the commitment to racial equity, with DEI departments being dismantled and corporate pledges being quietly sunset. This has left Black professionals—especially Black women and men—exposed to increased unemployment, stagnation, and exclusion amid reduced institutional support for DEI policies.

Everyday actions for change

Everyday actions, such as supporting Black-owned businesses, can have generational consequences. It is crucial to bridge the knowledge gap to inform people about the importance of Black-owned businesses and the impact they have on the economy. Perception is reality, and it is up to us to erase the perception that race is associated with the scarlet letter.

[1] "The State of Racial Equity in the U.S. Labor Market for Black Professionals." (2025). Report by the National Urban League. [2] "The Impact of Trump Administration Policies on Diversity, Equity, and Inclusion." (2021). Report by the Brookings Institution. [3] "The Status of Black Women in the Workforce." (2022). Report by the National Women's Law Center. [4] "The Decline of DEI Efforts in the U.S." (2023). Report by the Society for Human Resource Management. [5] "The Employment and Earnings Gap for Black Men." (2024). Report by the Economic Policy Institute.

• The reversal in the commitment to racial equity, as demonstrated by the dismantling of DEI departments and the quiet sunsetting of corporate pledges, has left Black professionals, particularly Black women and men, exposed to increased unemployment, stagnation, and exclusion amid reduced institutional support for DEI policies.
• Everyday actions, such as supporting Black-owned businesses and bridging the knowledge gap to inform people about their importance and the impact they have on the economy, can have generational consequences in addressing racial disparities and erasing the perception that race is associated with discrimination.

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