A new study conducted by Levine AND Wiss reveals that America's unemployment crisis is not just about numbers—it's about who is most affected. While the national unemployment rate remains steady at 4.2 percent, teenagers, Black workers, and the long-term unemployed are bearing a disproportionate share of the burden. The study highlights how demographic disparities are widening in 2025, raising concerns about equity, opportunity, and long-term economic stability.

 

Headline Stability vs. Demographic Instability

The national unemployment rate of 4.2 percent suggests stability, but the study shows that this figure conceals deep demographic divides. Some groups are experiencing stable or improving employment, while others are facing rising joblessness and fewer opportunities.

 

Teenagers as a Bellwether

Teen unemployment has spiked sharply in 2025. Bloomberg data cited in the study suggests that teenagers are often the first demographic hit during downturns, making this spike a warning sign of broader labor market weakness. Retail layoffs, which surged by 255 percent year-over-year, disproportionately affected young workers, many of whom rely on part-time retail jobs as their entry point into the workforce.

 

Racial Disparities

Black workers continue to face disproportionately high unemployment rates compared to other groups. These disparities reflect systemic barriers to job access and security, which are exacerbated during periods of economic restructuring. The study notes that layoffs in finance and nonprofits—sectors with significant minority representation—have worsened these disparities.

 

Long-Term Unemployment on the Rise

The number of Americans unemployed for 27 weeks or more rose by 179,000 in July, bringing the total to 1.8 million. Long-term unemployed workers now make up nearly 25 percent of all unemployed Americans. This trend is particularly concerning because long-term unemployment often leads to skill erosion, reduced employability, and increased reliance on public assistance.

 

Sectoral Layoffs and Demographic Impact

The study highlights how layoffs in specific sectors disproportionately affect certain demographics:

  • Federal restructuring eliminated 287,000 jobs, many of which were held by mid-career professionals.

  • Finance layoffs disproportionately affected urban centers with diverse workforces, hitting minority communities hardest.

  • Retail job losses hit younger workers, with 80,000 layoffs in early 2025.

  • Nonprofit layoffs surged 407 percent year-over-year, affecting women and minority workers in particular.

These sectoral shifts show how layoffs are not evenly distributed across demographics, amplifying existing inequalities.

 

High-Profile Corporate Layoffs

The collapse of companies like 23andMe, Del Monte, and At Home, along with Microsoft's 9,000 job cuts, further illustrates how economic volatility disproportionately harms vulnerable groups. These layoffs often occur in industries where women, minorities, and younger workers are overrepresented, compounding the demographic divide.

 

Federal Employment Declines

The study also notes that federal employment dropped by 12,000 in July, totaling 84,000 fewer positions than at its January 2025 peak. These cuts disproportionately affected workers in Washington, D.C., Maryland, and Virginia, regions with diverse workforces.

 

Legal and Economic Implications

The study emphasizes that not all layoffs are the same. Those caused by government actions, policy shifts, and global economic decisions often create legal uncertainty for affected workers. Potential issues include unlawful termination during mass layoffs, discrimination in workforce reductions, and violations of federal WARN Act requirements. Understanding these legal dynamics is critical for workers seeking recourse.

 

Policy Recommendations

The study concludes that addressing demographic disparities requires targeted interventions. These include:

  • Expanding workforce development programs for teenagers and young adults.

  • Strengthening anti-discrimination enforcement in layoffs and hiring.

  • Providing retraining opportunities for long-term unemployed workers.

  • Supporting minority-owned businesses in sectors hit hardest by layoffs.

 

Conclusion

The study conducted by Levine AND Wiss concludes that America's unemployment crisis is not evenly distributed. Teenagers, Black workers, and the long-term unemployed are bearing the brunt of job losses, while other groups remain relatively stable. Without targeted interventions, these disparities could widen, creating long-term structural inequalities in the labor market.