The January jobs report showed a surprising increase in employment, and that unemployment had decreased to 4.3%. Employment increased by 130,000, with most of the job gains coming in health care (82,000), social assistance (42,000), and construction (33,000).
Outside these national gains, however, workers in the Black community continue to face higher unemployment. Recent data and expert interviews indicate that Black unemployment remains above the national average.
Black unemployment dropped from 7.5% in December to 7.2% in January. “Good is a word. I think it is definitely a progression, I would say,” said Dr. Gabrielle Smith Finnie, senior research analyst at the Joint Center for Political and Economic Studies. “We still have elevated unemployment numbers for Black workers, even with the decrease from 7.5% in December to 7.2 in January. It’s still elevated, but it definitely is better than reports that we had in December.”
However, the unemployment numbers for both Black men and women are still above the national rate. Sector-specific gains show a mixed picture for Black workers.
“There needs to be more work on the data, specifically about which sectors,” Smith Finnie said. “Now, we do know that more jobs were added in January than in December or November. In January alone, 130,000 jobs were added, which is notable. Those sectors specifically are in private education and health services, construction, and manufacturing as well … more positives for sure, right? That is double, nearly triple the amount of jobs added, which definitely impacts the unemployment rate.” She cautioned that it is a little too early to say what employment levels will be like throughout the year, “but I think added job gains are very hopeful.”
Black women saw some improvement, with their unemployment rate dropping by 1.4 percentage points. “One in five Black women in the labor market works in the healthcare sector. This is an opportunity where we’re seeing a positive decrease in unemployment for Black women,” Smith Finnie noted. “This could be a sector where more Black women are employed … We’re looking forward to seeing how that number continues, especially with more consistent job growth in the healthcare sector. We’re hoping it is a path of employment for Black women.”
Still, Black men’s unemployment rate rose to 8% in January. Smith Finnie said it is not unusual for it to be higher than Black women’s, but the rate for white men was 3.8% in January, compared with 8% for Black men. The types of jobs held by Black men — often in cyclical industries like construction and transportation — leave them especially vulnerable to economic swings.
Job layoffs and the road ahead
Alphonso David, president and CEO of the Global Black Economic Forum (GBEF), spoke of the significance of the latest jobs report in light of major federal policy shifts and workforce cuts that are affecting Black workers.
David noted that the federal government has eliminated 270,000 jobs, with Black workers making up 19% of the federal workforce before these cuts, compared with about 13% of the overall labor force. “That is significant,” he noted. “Also, just for additional context, when the private sector refused to hire Black people in the ’50s, ’60s, ’70s, ’80s, and in some cases the ’90s, government work served, and continues to serve, as a pathway to sustainability and wealth-building for Black people and their families. That pathway is now being tripped by the federal government.”
Housing, veterans services, and public service agencies where Black workers were highly represented faced job cuts. “We also know that the agencies targeted for reductions in force were, in many cases, those where Black workers were disproportionately represented,” David said.
Some displaced Black workers are now starting their own businesses or looking for jobs in the nonprofit sector, although these are limited solutions. “When there is a reduction in force that disproportionately impacts minority populations, we create businesses. So many folks are creating their own consulting firms and businesses in order to support their families,” David observed. He also said the rising rate of Black youth unemployment, which spiked at nearly 30% in late 2025 and now hovers around 18%, is alarming. “These are young people who are underemployed or unemployed — the keys to our future — and they’re not being engaged in the work market, so it’s a dire picture for older Black workers as well as young people.”
Even as experts point positively to rising earnings for workers, income gains are not evenly distributed. In 2026, the median weekly earnings for Black workers were about $986, compared with $1,231 for white workers and $1,566 for Asian workers. “Those increases and gains are not evenly distributed. The median income for Black households is about 36% lower than for white households,” David said.
Ongoing attacks on Diversity, Equity, and Inclusion (DEI) initiatives create further barriers. “Over the decades, we’ve seen systemic racism built into the job market, where qualified Black and Brown people are denied opportunities simply because of their race, ethnicity, and, in some cases, gender,” David said.
He urged Black workers to continue taking part in the marketplace and to seek support when facing job discrimination. Events such as the GBEF’s annual business summit and public convention at the Essence Festival of Culture in July in New Orleans is one of many ways people can meet up with different businesses, including large companies and entrepreneurs.
“Where they face bias, discrimination, or indifference, they should reach out to us and other organizations doing this work across the country, because we have to make sure we protect the civil liberties and civil rights our ancestors secured for us,” David said. “It’s not necessarily going to be easy … but I am suggesting that we can’t assume the environment has changed so much that we no longer have protections.”