Black America Facing A Recession Across Jobs, Housing, And Technology

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Workforce policy changes further reinforced inequality. While initiatives designed to advance African American workforce participation stalled or were cut, reinforcing racial disparities rather than closing them.

By Stacy M. Brown, NNPA Senior National Correspondent

Black unemployment surged to 7.5 percent by December 2025, a level that would signal a recession if it were reflected across the national workforce. But the latest “State of the Dream 2026” report makes clear the damage extends far beyond jobs. From broadband access and housing to artificial intelligence and federal workforce policy, the Joint Center for Political and Economic Studies finds that 2025 marked a sharp economic breakdown for Black America driven by policy reversals and the removal of long-standing safeguards.

Released this week, “State of the Dream 2026: From Regression to Signs of a Black Recession” draws on research from the Joint Center and partners including United for a Fair Economy, the Center for Economic Policy Research, the National Community Reinvestment Coalition, and the Onyx Impact Group. The report situates rising unemployment within a wider retreat from equity-focused policy across nearly every sector shaping economic opportunity.

Employment remains the most visible signal. Black unemployment rose from 6.2 percent in January 2025 to 7.5 percent by December. Black youth experienced severe instability, with unemployment spiking from 18.6 percent in September to 29.8 percent in November before falling back to 18.3 percent in December. The report finds that if Black workers had maintained their 2024 prime-age employment rate, roughly 260,000 more Black adults would have been working in 2025, including about 200,000 prime-age Black women.

The collapse of federal employment accelerated the trend. Roughly 271,000 federal jobs were eliminated in less than a year, hitting Black workers particularly hard because they have historically been overrepresented in…

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