As the United States marks Labor Day 2025, the mood among American workers is anything but celebratory. For Black workers and those in the country’s manufacturing heartland, recent months have brought a wave of uncertainty, job losses, and shifting economic tides. At the center of this turbulence are President Donald Trump’s sweeping tariffs, a controversial rollback of diversity and inclusion policies, and a broader economic downturn that has hit some communities much harder than others.
According to The Rev. Terrence L. Melvin, President of the Coalition of Black Trade Unionists, “worklife for most Black folks is about vigilance to cope with the unexpected and resilience to overcome barriers meant to constrain or exploit our presence.” This Labor Day, he describes the state of Black work life as “precarious,” with Black workers facing a “dangerous moment” in American history.
One of the most striking indicators is the surge in Black unemployment, which now stands at 7.2%—the highest since the dark days of the COVID-19 pandemic. By contrast, white unemployment is at a much lower 3.7%, nearly half that of Black workers. This gap, Melvin observes, is not just a statistic but a sign of “an employment crisis” that has deepened under the Trump administration.
Much of this crisis can be traced to a dramatic shift in federal policy. Eight months ago, President Trump signed an executive order banning diversity, equity, and inclusion (DEI) initiatives in all federal agencies and programs. This move, described by Melvin as part of Trump’s “War on Blackness,” has led to mass layoffs and a significant reduction in the federal workforce—a workforce where nearly one in five employees is Black. Agencies hit hardest by these cuts, such as the Department of Education, have some of the highest percentages of Black employees, with the department itself counting 28% of its staff as Black.
The impact has been especially devastating for Black women. More than 226,000 Black women lost their jobs during Trump’s DEI purge, and nearly 300,000 have left the workforce in just the past three months. The share of Black women working in the federal government has plunged by almost a third over the past year. Even more troubling, over 518,000 Black women have not returned to the workforce since the pandemic began in 2020. As of this Labor Day, the real unemployment rate for Black women hovers just above 10%.
Economist Katica Ray summed up the cascading effects of these job losses: “When these women are pushed out of the workforce, entire families lose their economic foothold, threatening housing stability, consumer spending and educational outcome for children. These are not isolated setbacks – they are systemic losses.” The shockwaves, Melvin warns, are “just starting to be felt” and should be treated as a warning sign of deeper trouble ahead.
But the challenges facing Black workers extend beyond layoffs and unemployment statistics. Trump’s administration also stripped millions of federal employees of their union contracts, undermining job safety, wages, and benefits. Despite being denied access to union dues, labor organizations are fighting back, seeking to reverse what they view as blatant retaliation. For many, the fight for labor rights is inseparable from the fight for racial justice. As Melvin puts it, “Union representation remains the most powerful means by which Black workers can earn fair wages, secure affordable healthcare and build wealth and retirement security.”
The turmoil is not limited to government jobs. In the industrial heartland of southeastern Michigan, manufacturing workers are grappling with the fallout from Trump’s tariffs, which were introduced this spring. According to Capital & Main, the president’s wide-ranging tariffs were intended to protect domestic industries and fulfill campaign promises to “create millions and millions of jobs” and “make the United States into a manufacturing powerhouse.”
Yet the reality has been far more complicated. Sean Crawford, a skilled trades apprentice at General Motors’ Warren Tech Center, notes that while some colleagues welcome tariffs on foreign auto manufacturers, the overall effect has been increased uncertainty and stalled hiring. “With the tariffs swinging as wildly as they are … I feel like a lot of [car] companies aren’t on firm footing,” Crawford says. He’s witnessed firsthand how unpredictable tariff rates and retaliatory measures from other countries have created a “chilling effect” on investment and hiring.
Indeed, the last three months have seen the U.S. manufacturing sector lose 37,000 jobs, according to the July jobs report. President Trump responded by firing the director of the Bureau of Labor Statistics, alleging on social media that the job numbers were “RIGGED in order to make the Republicans, and ME, look bad.”
Manufacturers are feeling the pinch. A National Association of Manufacturers survey found that only 55.4% of companies are optimistic about their future—a 15-point drop from earlier in the year and the lowest level since the pandemic’s onset. Nearly nine in ten manufacturers report increased operational costs due to tariffs, and many are scaling back hiring or relying on temporary workers who earn less and receive fewer benefits. Crawford points out that some “temporary” workers have held such positions for as long as seven years, raising questions about the quality and stability of the jobs being created.
While the United Auto Workers union supports a 25% tariff on most foreign automakers as a way to “end the free-trade disaster,” it has cautioned against “reckless chaotic tariffs on all countries.” The economic consequences have been mixed: General Motors’ profit fell by over $1 billion in the second quarter of 2025 compared to the previous year, leading to temporary layoffs of 200 workers in Detroit. Stellantis and Volvo have also cut hundreds of jobs in response to falling earnings and market shifts.
The clean energy sector, once a bright spot for American manufacturing, has been especially hard hit. More than $18 billion in clean energy manufacturing projects have been canceled since the start of 2025, wiping out thousands of potential jobs. In Ohio, a Cleveland-Cliffs facility that was set to transition to hydrogen production—and create over 1,000 union jobs—will now continue producing coal instead, with a focus on automation and artificial intelligence to boost efficiency. As Babak Hafezi, a business professor and consultant, explains, companies are increasingly turning to automation or moving production overseas, leaving workers and their communities at risk.
For young Black workers, the obstacles are even steeper. They face chaotic work schedules, rising rents, transportation costs, child care challenges, gender bias, and backlash against DEI initiatives. The unemployment gap between Black and white young adults is now two to one—a stark reminder of the hurdles that persist.
Yet amid the turmoil, some Black workers are seeking a new path. Melvin notes a growing trend toward prioritizing wellness, family, and purpose over the relentless “hustling mentality” that has long defined Black work life. As living costs rise and job security remains elusive, the value of union membership, community, and personal well-being is coming to the fore.
Labor Day 2025 finds America’s workers at a crossroads, grappling with economic and social forces that are reshaping the world of work. For Black workers and the country’s manufacturing backbone, the fight for stability, dignity, and opportunity remains as urgent as ever.
