7.5%

Black unemployment rate has risen. Why it's the "canary in the coal mine"

From CNN's Alicia Wallace

The unemployment rate for Black workers in the United States rose again last month to 7.5%, the highest level since October 2021.

During the past two months, the unemployment rate for Black workers has risen considerably higher, jumping from 6% to 6.8% in June and then to 7.2% in July.

Demographic data in the household survey (one of two that compose the monthly jobs report) can be highly volatile because of smaller sample sizes; however, if it moves higher in August, “it will mean we have a serious deterioration in the labor market situation for Black workers in just a half year,” said Dean Baker, senior economist at the Center for Economic and Policy Research.

A rise in the Black unemployment rate is often considered the “canary in the coal mine,” foretelling a broader-scale job market slowdown.