Class of 2026
Black unemployment
D.C. region
Affordability

Young college graduates are entering a weaker labor market, but outcomes are more mixed than the headlines suggest. Unemployment is on the rise for young college graduates, though it’s mostly because of higher labor force participation.

Certain demographic groups, such as Black and Hispanic workers, face higher unemployment and lower hourly wages, even for young people with limited work experience. 

The college degree is losing its edge →

Black unemployment is rising and employment is falling, reflecting a deterioration in labor market conditions. 
 
In the first quarter of 2026, the Black unemployment rate (7.6%) was 1.2 percentage points higher than in the first three months of the second Trump administration. And Black workers—particularly men—are experiencing lower employment compared with a year ago. 

It doesn’t have to be this way →

After a year of Trump attacks on federal workers and agencies, the Washington D.C. region has experienced far greater employment losses compared with the rest of the country—and Black workers have borne the brunt of the downturn.

But other localities across the country—particularly those with large federal workforces, those that are heavily dependent on federal programs, and those with sizeable immigrant populations—are far from immune. Many could suffer as much, if not more, from the Trump administration’s actions over the past year.

Brace for economic impact →

In recent decades, income inequality has skyrocketed because of intentional policy choices that suppressed wages for typical families to accelerate income growth at the top. Our new analysis finds that middle-class household incomes would be roughly $30,000 higher today if their incomes had simply kept pace with average income growth since 1979.

Recognizing that today’s affordability problems are overwhelmingly inequality problems is the key to constructing the right policy solutions.

It doesn’t have to be this way →

EPI in the news

  • Palm Beach Post | May 7, 2026
  • The Mountain Messenger (California) | May 7, 2026
  • Essence | May 7, 2026
  • American Prospect | May 7, 2026
  • Hoodline | May 7, 2026
  • Washingtonian Magazine | May 7, 2026
  • Chicago Reader | May 7, 2026

More EPI in the news