The unemployment rate for black workers has risen to the highest level since 2021, a development economists say is an indication that the labor market is softening.

Recent labor market reports have indicated that, while above-water, the job market is starting to deteriorate. The unemployment rate rose to 4.3% in August, up from 4% at the start of the year, but the black unemployment rate has shot up by a much larger degree, rising to 7.5% last month, an increase from 6% just three months ago.