Black Americans See Uptick In Unemployment, Down For White Americans
Oakland (Special to ZennieReport.com) – Proving that government spending matters to the U.S. Economy, new State and Local Government employment numbers were behind the addition of 147,000 jobs, countering shrinkage in private sector and federal government positions.
According to The Bureau of Labor Statistics in its most recent report, the positive employment came from State and Local Government, but the jobs news did not benefit African Americans. Of all groups, only blacks saw an increase in unemployment while whites saw a decrease.
From The Bureau of Labor Statistics: Among the major worker groups, the unemployment rate for Blacks (6.8 percent) increased in June, while the rates for adult women (3.6 percent) and Whites (3.6 percent) decreased. The jobless rates for adult men (3.9 percent), teenagers (14.4 percent), Asians (3.5 percent), and Hispanics (4.8 percent) showed little or no change over the month. (See tables A-1, A-2, and A-3.)
President Trump Takes Glee In U.S. Jobs News
In a press release with the title “June Boom: Jobs Report Shows the Economy Continues to Soar Under President Trump”The White House reports on the gains, but avoids the fact that they were entirely driven by State and Local Government. Here’s The White House.
“For the FOURTH month in a row, jobs numbers have beat market expectations with nearly 150,000 good jobs created in June. American-born workers have accounted for ALL of the job gains since President Trump took office and wages continue to rise. The economy is booming again and it will only get better when the One, Big, Beautiful Bill is passed and implemented.” – White House Press Secretary Karoline Leavitt
Under President Donald J. Trump’s leadership, the economy had another stellar month — with wage increases for hardworking Americans, a falling unemployment rate, and a labor market that’s once again benefitting American citizens.
- In June, the U.S. added 147,000 jobs — beating expectations for the fourth straight month.
- The April and May numbers were revised 16,000 HIGHER.
- The unemployment rate fell to 4.1% — also beating expectations.
- Native-born workers now account for ALL job gains since January.
- Foreign-born employment has fallen -543,000 since January, while native-born employment has increased by 2,079,000.
- For the same months last year, foreign-born workers accounted for roughly 48% of new jobs.
- Wages for working Americans continue to rise — with average hourly earnings up by close to 4% over the past year.
Trump DOGE Cuts Responsible For Negative Federal Jobs Portion Of Jobs Report
After his 2024 Election victory, President Trump and staff executed the plan to have tech entrepreneur Elon Musk form and manage a new federal government division called the Department of Government Efficiency aka DOGE.
The idea of DOGE was to identify operations that DOGE itself deemed not efficient, and without a clear measure of how that was determined. Most of the program eliminations executed by DOGE went under legal challenge so some positions were restored.
But the overall impact is that roughly 280,000 federal jobs have been cut due to DOGE actions, with an additional 10,459 cuts attributed to the downstream impact of DOGE, primarily affecting non-profits and educational organizations. This accounts for a large portion of the overall job cuts announced in 2025 according to a statement released by Andrew Challenger, senior vice president and workplace expert for Challenger, Gray & Christmas.
This data flies in the face of Trump Administration claims of any economic benefit from the DOGE cuts. Indeed, the overall reduction in the gross domestic product in the 1st quarter of 2025 was “revised down 0.3 percentage point from the second estimate, primarily reflecting downward revisions to consumer spending and exports that were partly offset by a downward revision to imports”.
The basics of teachings in macroeconomics hold. Government spending decreases have a negative impact on the American Economy:
- Government spending is a key component of Gross Domestic Product (GDP), the measure of the size of the economy.
- Increased government spending can stimulate economic growth through the multiplier effect, where the initial increase in spending leads to further rounds of spending and income generation.
- The level of government spending is influenced by the economic system in place, as different economic systems have varying degrees of government involvement in the economy.
- Government spending can be financed through taxation, borrowing, or a combination of both, and the choice of financing method can have significant implications for the economy.
In this case, those Federal Government decreases in spending were countered by increases in State and Local Government spending.
Here’s The Rest Of The Bureau of Labor Statistics News
Total nonfarm payroll employment increased by 147,000 in June, and the unemployment rate changed little at 4.1 percent, the U.S. Bureau of Labor Statistics reported today. Job gains occurred in state government and health care. Federal government continued to lose jobs.
This news release presents statistics from two monthly surveys. The household survey measures labor force status, including unemployment, by demographic characteristics. The establishment survey measures nonfarm employment, hours, and earnings by industry. For more information about the concepts and statistical methodology used in these two surveys, see the Technical Note.
Household Survey Data
Both the unemployment rate, at 4.1 percent, and the number of unemployed people, at 7.0 million, changed little in June. The unemployment rate has remained in a narrow range of 4.0 percent to 4.2 percent since May 2024. (See table A-1.)
Among the major worker groups, the unemployment rate for Blacks (6.8 percent) increased in June, while the rates for adult women (3.6 percent) and Whites (3.6 percent) decreased. The jobless rates for adult men (3.9 percent), teenagers (14.4 percent), Asians (3.5 percent), and Hispanics (4.8 percent) showed little or no change over the month. (See tables A-1, A-2, and
A-3.)
In June, the number of long-term unemployed (those jobless for 27 weeks or more) increased by 190,000 to 1.6 million, largely offsetting a decrease in the prior month. The long-term unemployed accounted for 23.3 percent of all unemployed people. (See table A-12.)
The labor force participation rate changed little at 62.3 percent in June, and the employment-population ratio held at 59.7 percent. (See table A-1.)
The number of people employed part time for economic reasons, at 4.5 million, changed little in June. These individuals would have preferred full-time employment but were working part time because their hours had been reduced or they were unable to find full-time jobs. (See table A-8.)
The number of people not in the labor force who currently want a job was essentially unchanged at 6.0 million in June. These individuals were not counted as unemployed because they were not actively looking for work during the 4 weeks preceding the survey or were unavailable to take a job. (See table A-1.)
Among those not in the labor force who wanted a job, the number of people marginally attached to the labor force increased by 234,000 in June to 1.8 million. These individuals wanted and were available for work and had looked for a job sometime in the prior 12 months but had not looked for work in the 4 weeks preceding the survey. The number of discouraged workers, a subset of the marginally attached who believed that no jobs were available for them, increased by 256,000 in June to 637,000. (See Summary table A.)
Establishment Survey Data
Total nonfarm payroll employment increased by 147,000 in June, in line with the average monthly gain of 146,000 over the prior 12 months. In June, job gains occurred in state government and health care. Federal government continued to lose jobs. (See table B-1.)
Government employment rose by 73,000 in June. Employment in the state government increased by 47,000, largely in education (+40,000). Employment in local government education continued to trend up (+23,000). Job losses continued in federal government (-7,000), where employment is down by 69,000 since reaching a recent peak in January. (Employees on paid leave or receiving ongoing severance pay are counted as employed in the establishment survey.)
Health care added 39,000 jobs in June, similar to the average monthly gain of 43,000 over the prior 12 months. In June, job gains occurred in hospitals (+16,000) and in nursing and residential care facilities (+14,000).
In June, social assistance employment continued to trend up (+19,000), reflecting continued growth in individual and family services (+16,000).
Employment showed little change over the month in other major industries, including mining, quarrying, and oil and gas extraction; construction; manufacturing; wholesale trade; retail trade; transportation and warehousing; information; financial activities; professional and business services; leisure and hospitality; and other services.
Average hourly earnings for all employees on private nonfarm payrolls rose by 8 cents, or 0.2 percent, to $36.30 in June. Over the past 12 months, average hourly earnings have increased by 3.7 percent in June. In manufacturing, the average workweek held at 40.1 hours, and overtime was unchanged at 2.9 hours. The average workweek for production and nonsupervisory employees on private nonfarm payrolls declined by 0.2 hour to 33.5 hours in June. (See tables B-2 ent. In June, average hourly earnings of private-sector production and nonsupervisory employees rose by 9 cents, or 0.3 percent, to $31.24. (See tables B-3 and B-8.)
The average workweek for all employees on private nonfarm payrolls edged down by 0.1 hour to 34.2 houand B-7.)
The change in total nonfarm payroll employment for April was revised up by 11,000, from +147,000 to +158,000, and the change for May was revised up by 5,000, from +139,000 to +144,000. With these revisions, employment in April and May combined is 16,000 higher than previously reported. (Monthly revisions result from additional reports received from businesses and government agencies since the last published estimates and from the recalculation of seasonal factors.)
Stay tuned.