The unemployment rate for Black Americans has climbed to its highest point since the pandemic in 2021, a concerning factor that economists say could signal broader economic trouble ahead.

According to new data from the Bureau of Labor Statistics, data indicates that Black unemployment hit 7.5% in August, its highest level since October 2021. That rate is more than double the unemployment rate for white workers. Economists point to factors like federal job cuts and tariff-driven economic uncertainty as possible drivers behind the rise.

Black men had a 7.1% unemployment rate last month, while Black women’s rate came in slightly lower at 6.7%. Still, Black women have experienced more significant job losses since the first quarter of 2025. For Black teens, the picture is even more disparate: unemployment for 16- to 19-year-olds stands at 24.8%.

Economists warn that this could be a warning sign for what’s coming next. “What we find typically is that the unemployment rates that you see for the young, for Blacks — and particularly Black males — are a telltale sign of the direction of the economy and what we can expect to see hit overall in a few months,” said Gary Hoover, an economist at Tulane University, to Yahoo Finance.

Gbenga Ajilore, chief economist at the Center on Budget and Policy Priorities, agreed, alluding to the fact that Black unemployment is a canary in the coal mine. He said, “If it’s steadily starting to go up, that portends that the economy might be heading toward a downturn.”

The overall U.S. unemployment rate also rose to 4.3% in August, its highest in more than a year, with just 22,000 jobs added—well below expectations. Federal workforce cuts have hit Black workers especially hard, with 97,000 government jobs lost since January.