U.S. Black employment falls despite wider job market stability

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The U.S. Black unemployment rate hit a 10-month high in June, driven in large part by Black workers leaving the labor market, a development some economists worry may be a 'canary in the coal mine' that may mean a recession is approaching.

An employee hiring sign with a QR code is seen in a window of a business in Arlington, Virginia, U.S., April 7, 2023. REUTERS/Elizabeth Frantz/File Photo

The Labor Department's closely watched monthly employment report released Friday showed the U.S. economythe fewest jobs in 2-1/2 years in June - but this softening did not affect all demographic groups uniformly. Some economists are concerned by the falling Black labor force participation rate - a measure of the people who are either employed or looking for work - which has fallen by 1.5% since March. In fact, the majority of the 239,000 person decrease in Black employment came from the people who left the labor force altogether in June, according to the report.

"The increase in unemployment for these vulnerable workers appears to be driven by difficulty finding a job among existing workers, rather than a meaningful entry of previously sidelined workers," William M. Rodgers III, director of the St. Louis Federal Reserve's Institute of Economic Equity, said.

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