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THE BLACK JOBS DEFICIT COST BLACK AMERICA $87 BILLION IN 2025  
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Algernon Austin
January 14, 2026
Center for Economic and Policy Research
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_ In 2025, Black America needed about 1.8 million more people working
to have the same employment rates (employment-to-population ratios) as
White America _

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In 2025, Black America needed about 1.8 million more people working to
have the same employment rates (employment-to-population ratios) as
White America (TABLE 1). This Black jobs deficit cost Black America
about $87 billion in lost income.

Black people face higher rates of joblessness because of racial
discrimination in the labor market. Researchers continue to find
strong evidence
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anti-Black bias in hiring
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among the formerly incarcerated, White individuals are more likely
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employment than Black individuals
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racial discrimination in the labor market can lead Black individuals
to become discouraged and not actively attempt to find work.

Black communities also experience high rates of poverty and economic
underdevelopment which leads to lower educational achievement and
fewer job opportunities. Researchers at Brandeis University find that
in America’s 100 largest metropolitan areas, 61 percent of Black
children
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live in low or very low opportunity neighborhoods while 68 percent of
White children
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live in high or very high opportunity neighborhoods — a stark
contrast. These family and community socioeconomic disadvantages also
contribute to higher rates of Black joblessness.

Black America appears to be the leading edge of a coming economic
downturn
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The Black jobs deficit has increased by nearly 20 percent from 2024 to
2025. In 2024, the Black jobs deficit was 1.5 million jobs
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Note: Estimates are based on 11 months of data and calculated for men
and women separately and then combined.

Source: Author's calculations based on Current Population Data on
employment, population, and usual weekly earnings from the Bureau of
Labor Statistics..Get the data
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If policymakers reduce the Black jobs deficit, they will improve
economic conditions for Black families, Black neighborhoods, and
ultimately the entire United States. When more Americans are living up
to their full economic potential, the country is stronger. Two steps
to achieve these goals would be (1) to commit to anti-discrimination
and equal opportunity in hiring, and (2) to invest in subsidized
employment and economic development programs in disadvantaged
communities.

There are numerous, effective model subsidized employment programs
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For example, with the New Hope for Families and Children program,
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after individuals’ enrollment in the program ended, there continued
to be higher rates of employment, earnings and children’s academic
achievement among the participants. The program had such positive
outcomes that it is estimated to pay for itself in the long run. With
smart investments, policymakers can create a more economically
productive society for all.

ALGERNON AUSTIN is Director, Race and Economic Justice at the Center
for Economic and Policy Research.

Algernon has conducted research and writing on issues of race and
racial inequality for over 20 years. His current primary focus is on
the low rate of employment in Black America, one of the three major
labor market challenges
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facing this population, and on using subsidized employment as a tool
to address this problem. Austin also has an interest in social
housing, infrastructure, racial wealth inequality, and other topics at
the intersection of race and the economy.

Austin has a PhD in sociology from Northwestern University, and he
taught sociology as a faculty member at Wesleyan University. He has
held positions at the Economic Policy Institute, the Center for Global
Policy Solutions, Dēmos, and the NAACP Legal Defense Fund. He has
discussed racial inequality on PBS, CNN, NPR, and other national
television and radio networks.

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* Income Inequality
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* Black unemployment
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* Racism
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