The Bureau of Labor Statistic (BLS) “Employment Situation” report found that the overall U.S. unemployment rate held at 4.4 % in September, 2025, with about 7.6 million people unemployed. (Bureau of Labor Statistics)
Disaggregated by race, the report shows:
-
Black workers: 7.5 % unemployment, with the rate for Black women growing from 6.7% in August to 7.5% in September.
-
Hispanic workers: 5.5 % unemployment.
-
White workers: 3.8 % unemployment.
These gaps matter for minority business enterprises (MBEs), because labor market conditions for minority workers affect both the supply side (availability of talent, wage pressures) and demand side (consumer spending power, business formation).
What this means for Black & minority‐owned firms
-
A 7.5 % unemployment rate for Black workers implies that a larger share of the workforce faces unemployment, which may constrain firms in sourcing qualified staff, or create labor cost pressures if fewer skilled candidates are available. Because Black women are over-represented in certain public-sector and professional roles, structural job-cuts or slowing hiring in those sectors likely hit that group harder. For example, we link Black women’s spike in unemployment to federal workforce reductions.
-
On the consumer side, when unemployment is higher in communities of color, spending power and business demand may be depressed, making growth harder for minority‐owned firms.
-
Minority‐owned firms often face dual headwinds: aggregate labor market conditions + structural barriers (access to capital, networks, procurement).
Key Opportunities & Strategic Considerations
1. Talent and Workforce Strategy
Given the above jobless‐rate disparities, MBEs (and firms targeting minority suppliers) might consider:
-
Workforce development partnerships: Collaborate with community colleges, workforce boards, or HBCUs to source and train talent.
-
Flexible models: With labor supply in some communities under-utilised, consider apprenticeship or paid training programs to build loyalty and bridge skill gaps.
-
Competitive wages and upskilling: To attract talent in markets where many minority‐led firms compete with larger employers for skilled workers, investment in training can yield differentiation.
2. Procurement, Demand & Market Positioning
Business demand in minority communities may be under-leveraged. Firms can:
-
Build local networks: Leverage networks in minority communities and minority business groups and Asian, Black and Hispanic Chambers of Commerce, to access underserved markets that may be more resilient than broader national averages.
-
Capitalize on growth sectors: BLS noted that in September, employment gains were in health care (+43,000), food services (+37,000) and social assistance (+14,000) while transportation and warehousing lost jobs. Minority firms positioned in growth-oriented service sectors may have an edge.
-
Access capital and procurement: Given the labour market sequencing, minority firms should pair talent strategy with access to capital and contracts. As we know from our work (e.g., in minority-business funding and strategy) the interplay of labour and capital is key.
3. Macro and Policy Context
-
BLS has highlighted that the rate of long-term unemployment (27 weeks+) remained at 1.8 million in September and accounted for 23.6 % of all unemployed. Long-term joblessness in minority communities may suppress entrepreneurial activity (fewer resources to invest, fewer networks). Any efforts to reduce long term unemployment in minority communities will have massive positive impacts.
-
The data release was delayed by the federal government shutdown, meaning that data for October and November will be released together on December 16, 2025. Interpret this data with caution and expect revisions.
What MBE Firms Should Do Now
-
Audit your talent supply chain
-
Map whether your candidate pool is drawn from communities with above‐average unemployment or under-employment.
-
Assess whether you have partnerships (colleges, vocational programs) to convert under-employed talent into your workforce.
-
-
Align your business model to high‐growth sectors
-
Service sectors (health, food services, social assistance) are showing gains. Consider whether your firm can pivot or expand into ancillary services for these sectors.
-
Review procurement opportunities with larger firms seeking diverse suppliers in growth areas.
-
-
Leverage your network and capital strategy
-
Given the structural disadvantage of minority firms, continue to build relationships with banks, National Minority Supplier Development Council (NMSDC.org) resources, and corporate supplier diversity programs.
-
Set aside cushions in your financial models to absorb labour market uncertainty and potential talent shortfalls.
-
-
Monitor metrics and disparities
-
Track your own firm’s performance vs. labour market indicators (e.g., unemployment rate in your locality by race/ethnicity) so you can anticipate shifts in talent supply or demand.
-
Use BLS and other publicly available data (such as from Economic Policy Institute) that show persistent racial gaps in unemployment and incorporate that into risk management. (Economic Policy Institute)
-
A Call to Action
Minority business owners operate in a labour market that is slower, less equitable, and more uncertain. The BLS data remind us that even when the headline unemployment rate is modest (~4.4 %), the rate for Black and Hispanic workers (7.5 % and 5.5 % respectively) remains substantially higher. That reality translates directly into constraints and opportunities for MBE firms.
Successful minority firms will be those that combine talent strategy, sector positioning, and capital access—all anchored by data‐informed decision-making. Now is the time to move from awareness of disparity to action: aligning your firm to where jobs are growing, drawing on under-utilised talent pools, and building resilient networks.