Black Adults Face Rising Financial Strain According To SHED

Mass layoffs and other economic pressures created under the Trump-Vance administration have left many Black households facing growing financial hardship and worsening job security, according to the Federal Reserve’s latest Survey of Household Economics and Decisionmaking (SHED). The report, which was obtained by the Economic Policy Institute, shows that anxiety about employment increased across the country, with more than two in five adults expressing concern about finding or keeping a job in 2025, up from 37% in 2024. While overall financial well-being remained relatively stable for most Americans, Black adults experienced a notable decline. They were more likely to lose their jobs, making them increasingly concerned about employment security and their ability to cover everyday expenses. The survey also found that higher levels of education offered little protection against these growing financial challenges.

2025 was a rough year financially for Black adults across the U.S. Here’s what the study found.

Black adults entered 2025 in their weakest financial position in nearly a decade. Just 60% reported they were either “doing okay” or “living comfortably,” a drop of nearly five percentage points from the previous year and the lowest level recorded by the SHED survey since 2015. The decline is especially striking compared with 2023, when nearly 68% of Black adults described their financial situation positively. Much of this downturn came from a shrinking share of respondents who said they were “living comfortably,” which fell from 23% in 2024 to 19% in 2025.

The data aligns with broader labor market trends. Black workers have long been overrepresented in industries such as the federal government, manufacturing, and private education and health services. For generations, federal employment has served as a reliable pathway to the middle class for many Black families, offering stable wages, benefits, and opportunities for upward mobility. But that foundation has been shaken under the Trump-Vance administration. Since January 2025, the federal workforce has lost 277,000 jobs, according to the Bureau of Labor Statistics, following widespread layoffs and buyouts under the Trump administration. Manufacturing has also taken a significant hit, shedding 72,000 jobs since April 2025 after President Trump’s sweeping tariff policy affecting more than 70 countries took effect.

Black women have experienced some of the steepest losses. As previously reported, between February and March 2025, during the height of Elon Musk and President Trump’s so-called “Optimization Initiative,” roughly 266,000 Black women lost their jobs, representing a 2.52% decline in employment for that group. The scale of those losses was comparable to the employment collapse Black women experienced during the early months of the COVID-19 pandemic in 2020.

College degrees did not protect Black adults from economic challenges.

The report also highlights that a college degree did not shield Black adults from worsening economic conditions. Financial well-being declined across every education level, but the steepest drop occurred among Black adults with a college degree. The share of college-educated Black adults who said they were doing okay or living comfortably fell by nearly seven percentage points in just one year.

As job growth slowed through the summer of 2025, Black workers were among the first to feel the effects of a weakening labor market. The share of Black adults reporting that they had lost a job rose by roughly three percentage points between 2024 and 2025, the largest increase among all racial and ethnic groups. Black adults were more than twice as likely as their white, non-Hispanic counterparts to report being laid off. These findings mirror broader labor market trends, which showed Black workers experiencing a sharper increase in unemployment and remaining about twice as likely as white workers to be unemployed throughout the year.

Rising job insecurity, combined with persistent affordability challenges, also made it harder for many Black families to stay financially afloat. More than three out of four Black adults (77.5%) said making ends meet was at least a minor concern for themselves and their families in 2025. That share increased by about eight percentage points from the previous year, reflecting a broad rise in economic vulnerability across all education levels. By comparison, the share of white, non-Hispanic adults reporting similar concerns declined slightly during the same period, highlighting the unequal financial impact of the year’s economic conditions.

In 2026, challenges remain as economic difficulties persist. In June, the U.S. Bureau of Labor Statistics reported that unemployment remained high for Black Americans at a rate of 6.6%, compared to 3.6% for white workers and a 4.2% overall national rate. The report noted that it has been hard for many to recover. In June, the number of people who were unemployed for 15 weeks or more stood at 2,989, slightly elevated compared to 2025 when the number was reportedly 2,591. You can imagine the amount of financial stress and pressure this puts on Black families. 

So, how do we protect ourselves? 

While the economic outlook remains uncertain, there are steps Black families can take to strengthen their financial resilience. Financial experts recommend prioritizing an emergency savings fund, even if contributions are small and consistent, while reducing high-interest debt whenever possible. Households may also benefit from reviewing monthly budgets, taking advantage of employer retirement matches, exploring workforce training or certification programs that can increase earning potential, and researching available community resources for housing, food, childcare, or utility assistance before a financial emergency arises. Staying informed about changes in the labor market, maintaining professional networks, and updating résumés can also help workers respond more quickly if layoffs occur. Although individual financial planning cannot eliminate the broader economic challenges highlighted in the Federal Reserve’s findings, these strategies can help families build greater stability and better weather periods of economic uncertainty.

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