African American women have faced rising challenges in the job market this year. Data from the U.S. Bureau of Labor Statistics shows their unemployment rate reached 8.0% in the third quarter for those 16 and older. That’s nearly double the 4.7% rate for women overall and well above the 3.9% rate for White women. For women aged 20 and over, the rate was 7.5% in September, higher than for African American men, White men, and the national average.
This isn’t a sudden issue. It’s rooted in long-standing barriers like racial and gender discrimination, uneven access to education, and a concentration in lower-paying, less stable jobs. Even during good economic times, African American women often haven’t shared equally in job growth. In fact, their unemployment rate only fell below 5.0% briefly in 2023, a rare moment since the early 1970s.
The recent jump is tied partly to major job cuts in the federal government. Since early this year approximately 300,000 African American women have lost positions or exited the workforce. Many came from government agencies such as the Department of Education and the Consumer Financial Protection Bureau, where they’re disproportionately represented. Federal employment for African American women has dropped nearly 33% over the last year, deepening economic inequalities.
Historically, federal and public-sector jobs have been crucial pathways to economic stability for African American women. These roles offered not just income but benefits and long-term security that helped build wealth in communities. The recent declines have reversed some decades of progress that helped many families move into the middle class.
African American women also play vital roles in healthcare, education, and public administration. When their unemployment rises, it hits productivity and spending across the board. Meanwhile, many have turned to self-employment or freelance work, not always captured in official stats, showing both resilience and a struggle to find stable jobs.
Entrepreneurship has been a major avenue of opportunity. Over the past decade, African American women have emerged as one of the fastest-growing groups of new entrepreneurs in the United States. They now own roughly 3.5 million businesses, generating over $60 billion in annual revenue. These businesses contribute significantly to job creation and innovation, particularly in underserved communities.
Many African American women entrepreneurs are leveraging digital platforms and gig economy opportunities to build their businesses. Activities include launching online retail stores, providing freelance professional services, consulting, and small-scale manufacturing. Platforms like Etsy, Amazon, and Upwork have become popular channels for reaching wider customer bases and clients.
Despite this impressive growth, Black women entrepreneurs face considerable hurdles. Access to capital remains a critical issue, with lower loan approval rates and smaller startup funding compared to their White counterparts. Many operate as nonemployer firms, businesses without paid employees, which tend to have lower revenues and face challenges scaling up.
Experts warn this employment and entrepreneurial gap impacts broader economic health. Wage disparities persist, with African American women earning significantly less than White men on average, exacerbating wealth inequality and economic insecurity. Policies that address education access, workplace discrimination, and fair lending practices are essential for closing this gap.
Fixing this gap requires more than restoring jobs. It means investing in workforce training, expanding access to capital for Black women business owners, strengthening anti-discrimination enforcement, and supporting programs that create pathways into high-demand industries. Economic growth depends on including everyone, and right now, the challenges facing African American women in employment and entrepreneurship show how much work remains.Â
