Analysis: European Americans unemployment rate rises slightly to 3.8 percent. Asian Americans decreased 50 basis points and Latino Americans increased 10 basis points from March, respectively. African America’s unemployment rate increased for the third straight month with a 10 basis points from March. African, European, and Latino Americans unemployment rates are at their highest over the past five months.
AFRICAN AMERICAN EMPLOYMENT REVIEW
AFRICAN AMERICAN MEN:
Unemployment Rate – 5.6%
Participation Rate – 69.2%
Employed – 9,918,000
Unemployed – 586,000
African American Men (AAM) saw a decrease in their unemployment rate by 50 basis points in April. The group had a negligible decrease in their participation rate in April by 10 basis points. African American Men added 48,000 jobs in April and saw their unemployed drop by 55,000.
AFRICAN AMERICAN WOMEN:
Unemployment Rate – 6.1%
Participation Rate – 61.2%
Employed – 10,262,000
Unemployed – 663,000
African American Women saw an increase by 100 basis points in April. The group increased their participation rate in April by 30 basis points. African American Women saw lost 38,000 jobs in April and saw their unmployed increase by 106,000. The number of African American Women employed is at a five month low and number of unemployed at a five month high.
AFRICAN AMERICAN TEENAGERS:
Unemployment Rate – 19.6%
Participation Rate – 28.3%
Employed – 610,000
Unemployed – 149,000
African American Teenagers unemployment rate decreased by 120 basis points. The group saw their participation rate decreased by 260 basis points in April. African American Teenagers saw their lost 45,000 jobs in April and saw their number of unemployed also decrease 23,000.
African American Men-Women Job Gap: African American Women currently have 344,000 more jobs than African American Men in April. This is a decrease from 430,000 in March. For the second straight month, this is the lowest ever reported gap by HBCU Money since we began tracking the data.
CONCLUSION: The overall economy added 177,000 jobs in April while African America lost 36,000 jobs. African American Women have shedded 304,000 jobs since February dropping their employed to the lowest number in the past five months for the second straight month. From New York Times, “U.S. employers added 177,000 jobs in April, the Labor Department reported on Friday. The unemployment rate was unchanged at 4.2 percent. Both numbers, which demonstrate that the U.S. labor market remains in good condition, are based on surveys taken in the immediate wake of the Trump administration’s move in early April to institute the highest level of tariffs on imports since the 1930s. The gain extended the streak of U.S. job growth to 52 months.”
Analyzing the U.S. Economic Calendar Through the Lens of African American Economic Empowerment
Monday, May 5
S&P Final U.S. Services PMI (Apr): 51.0 (Prev: 51.4)
ISM Services Index (Apr): 50.4% (Prev: 50.8%)
A cooling services sector raises concerns for Black-owned businesses and workers concentrated in service-based industries. Marginal growth may mean tighter margins and slower hiring, especially in personal care, retail, and small hospitality—fields where many African American entrepreneurs and employees operate.
Tuesday, May 6
U.S. Trade Deficit (Mar): -$136.0B (Prev: -$122.7B)
The growing trade deficit highlights America’s deepening reliance on imports, reinforcing structural challenges for domestic manufacturing. This imbalance is particularly troubling for aspiring Black manufacturers and export-driven enterprises that struggle to compete with cheaper foreign supply chains and lack equitable access to capital or infrastructure.
Wednesday, May 7
FOMC Meeting & Fed Chair Powell Press Conference
Consumer Credit (Mar): $11.0B (Prev: -$800M)
The Federal Reserve’s direction this week is critical. Interest rate policy affects African American households disproportionately, with higher borrowing costs hitting hardest among those with lower credit scores and less generational wealth. A rise in consumer credit signals that families—many Black households included—may be increasingly relying on debt to maintain basic living standards amid inflation. The burden of debt is rising, not falling.
Jobless claims are stable, but national figures obscure racial disparities. Black unemployment remains consistently higher than average. Meanwhile, negative productivity numbers may point to slower wage growth—again affecting African American workers in roles offering limited career mobility. Rising wholesale inventories suggest slowing consumer demand, which could hit Black-owned consumer goods businesses that often operate without deep cash reserves.
Friday, May 9
Fed Governor Lisa Cook Speech (6:45 AM ET)
Multiple Fed Speakers Throughout Day
All eyes will be on Lisa Cook, the first Black woman on the Fed’s Board of Governors. Her remarks may provide valuable insight into how the central bank views labor market equity and inflation’s disproportionate impact on communities of color. The deluge of Fed speeches will shape interest rate sentiment and financial market reactions—affecting everything from mortgage rates for HBCU alumni to capital access for Black banks, credit unions, and small businesses.
HBCU Money Perspective: This week’s economic events carry clear signals for the African American economy. Slower service sector growth, rising debt reliance, and stagnant productivity reinforce the need for systemic change—particularly in access to capital, support for Black manufacturing, and inclusive monetary policy. As Fed policy direction becomes clearer, HBCUs, Black-owned financial institutions, and policy advocates must prepare to assertively engage with these shifts to protect and grow Black wealth.
The most recent student loan data is an extremely hard gauge to use given its lag time. This data is the latest data available by ICAS, but also is pre-COVID and pre-George Floyd. The latter in that situation potentially produced a significant increase in student loan debt by students as many sought to help themselves and their families through financial aid refunds. COVID exposed African America’s acute financial fragility through poor health insurance, jobs with high exposure to COVID risk, and more. To the latter, in the post-George Floyd that also occurred where hundreds of millions poured into HBCU coffers led by MacKenzie Scott in levels never seen before and COVID relief funding through the CARES Act to colleges and universities witnessed HBCUs providing an immense amount of financial relief to its students to try and stem the debt tide.
HBCU graduates actually have some good news in that their median debt dropped approximately 8 percent from our last report while their PWI counterparts at major endowed institutions remained virtually unchanged. The bad news is that the percentage of HBCU graduates with debt remains unchanged while their PWI counterparts at major endowed institutions graduating with debt dropped almost 20 percent. This expands the gap of HBCU/PWI students graduating with debt from a previous 46 percentage points difference to now 52 percentage points in this latest report.
Numbers in parentheses shows the comparative results from the universities of the 30 largest endowments:
Median Total Debt of HBCU Graduates – $31,422 ($24,479)
Proportion of HBCU Graduates with debt – 85% (33%)
Median Private Debt of HBCU Graduates – $17,386 ($44,622)
Proportion of HBCU Graduates with private debt – 7% (5%)
Source: The Institute for College Access & Success
Looking at the numbers even further shows that HBCU Graduates debt is almost 30 percent higher than their PWI major endowed counterparts. This despite HBCUs being significantly cheaper, HBCU Graduates suffer from a student body that acutely comes from families that lack family assets and stability to assist. It is highlighted in the private debt component where PWI counterparts have significantly higher amounts of private debt. Potentially speaking to the borrowing power of those PWI families beyond federal financial aid.
It may be a few years before updated data from within the COVID era is available, but basic extrapolation suggest that even with the donations received after George Floyd and the CARES Act that HBCUs simply still lack the endowments to make up for the acute lack of African American household wealth combined with less than 10 percent of African Americans choosing HBCUs. The latter means that HBCUs operate with smaller alumni pools. These smaller pools means a smaller nominal giving of the alumni who do give and a significantly smaller probability that the HBCU can create a percentage of alumni who go onto become wealthy donors.
In the end, HBCU alumni who care about this must make available scholarship to a wider net of HBCU students while in school. Focusing on creating scholarship that is available to every student who is academically eligible and giving less emphasis to GPA. The large majority of any HBCU graduation class has GPAs between 2.0 and 3.0 and are the ones most likely to be left out of having any ability to decrease their student loan burdens making them almost never to be in a position to become donors.
By expanding eligibility requirements, scholarships can provide financial relief to those who need it most—students who are often balancing academics with work, family responsibilities, and other challenges. Many of these students demonstrate resilience, dedication, and a commitment to completing their education, yet traditional scholarship models disproportionately favor high achievers with GPAs above 3.5. While academic excellence should be celebrated, financial aid should not solely be reserved for the top percentage of students.
A broader approach to scholarships will help create a stronger alumni network in the long run, as more graduates will leave school with reduced debt, making them more likely to support their alma mater financially and contribute to future scholarship funds.
“If we don’t support our own institutions, who will? Our future depends on it.” – Dr. Johnnetta B. Cole
In a society where celebrity controversy often overshadows institutional legacy, the recent $10 million legal settlement offer by Shannon Sharpe is notable not just for its allegations, but for what it inadvertently reveals about the chasm between Black celebrity wealth and the underfunded institutions that shape it.
Sharpe, an NFL Hall of Famer turned sports media luminary, is embroiled in a sexual assault lawsuit in April 2025 that has added fuel to the fodder over his public image for years. The allegations, dating back to 2021, accused him of sexual assault and misconduct. Though the terms of the settlement do not admit guilt, the figure—$10 million—is enough to reverberate well beyond the courtroom. Particularly for Savannah State University, Sharpe’s alma mater, whose entire endowment hovers just north of $12 million.
That a single lawsuit settlement could nearly eclipse the full financial endowment of a university—an institution that has educated generations of Black students since its founding in 1890—demands attention. It is more than legal coincidence; it is cultural commentary. Sharpe’s settlement and Savannah State’s endowment share more than proximity in value—they reflect a profound misalignment between individual Black success and collective Black institutional health.
Celebrity Capitalism vs. Institutional Capital
Sharpe’s alleged settlement offer arrives at a time when he is more visible than ever. From ESPN panels to viral podcast interviews, he has crafted a new media identity grounded in charisma, cultural commentary, and athletic credibility. He is a multimillionaire many times over, and for much of the public, a figure of Black excellence.
And yet, while the scandal has put his reputation into question, the institutional damage is more structural than sensational. Savannah State University, like most HBCUs, remains chronically underfunded. In Georgia, the flagship University of Georgia enjoys an endowment exceeding $1.8 billion. Savannah State’s $12 million looks less like a war chest than a coin jar.
This contrast is not unique. Harvard’s endowment, currently over $50 billion, generates more passive income in a single day than most HBCUs earn annually. Meanwhile, Black cultural, entertainment, and sports figures continue to accumulate individual wealth—largely without corresponding reinvestment in the institutions that launched their journeys.
In Sharpe’s case, it is particularly jarring. He has long spoken with pride about Savannah State, often positioning his ascent from a small HBCU to NFL stardom as proof of grit, talent, and perseverance. But the question remains: can Black America afford to celebrate individual ascent while its institutions struggle to survive?
Institutions as the Forgotten Priority
The logic of endowments is simple: they are long-term capital. Through careful management, they yield investment income that sustains a university’s operations—faculty salaries, scholarships, research grants, infrastructure. A $12 million endowment, assuming a 5% annual drawdown, provides just $600,000 per year. That’s not enough to fund a single major building renovation or hire a cohort of tenure-track faculty.
Yet for a fraction of what he has paid in legal settlements, Sharpe—or any number of successful HBCU alumni—could fundamentally change the trajectory of such institutions. This is not to single out Sharpe, but to highlight the imbalance. In an ideal world, the very wealth that is now being paid out in settlements would be instead building libraries, research labs, and scholarship funds.
This tension is particularly visible among athletes and entertainers. Black America’s most visible ambassadors often emerge from institutions that are themselves invisible in the national philanthropic conversation. According to UNCF, the combined endowments of all HBCUs total less than $5 billion. The Ivies, by contrast, hold over $200 billion in endowment assets.
Culture, Crisis, and the Limits of Individualism
Sharpe’s settlement speaks to more than a personal reckoning—it is a cultural moment. It raises questions about power, accountability, and how society arbitrates guilt and innocence outside the courtroom. But for the Black community, it should also prompt deeper reflection on how fame and fortune are managed—and how institutions are too often left behind.
There is a troubling pattern: institutions that produce Black talent are celebrated in name, while being abandoned in practice. Alumni homecomings become nostalgic affairs, rich in ritual but poor in revenue. HBCUs are used as cultural references in music and fashion, but rarely as investment priorities.
The result is that even as African Americans make gains in representation and cultural power, their institutions remain at risk of irrelevance or collapse. The stakes are not merely educational—they are existential. Without strong institutions, there can be no sustainable community power.
What a $10 Million Gift Would Mean
Imagine instead that $10 million were a donation, not a payout. At Savannah State, that amount would nearly double the endowment overnight. It could launch a center for Black media studies, a school of sports journalism, or fund full scholarships for dozens of students. It could digitize archives, attract talent, and fund study-abroad programs that broaden horizons.
Better yet, it could serve as a challenge grant—a call for other high-profile HBCU alumni to match it, dollar for dollar. Such a campaign could transform the entire financial landscape of HBCUs in a single generation.
There is precedent. Oprah Winfrey’s $13 million donation to Morehouse College, Robert F. Smith’s debt forgiveness gesture at Morehouse’s graduation, and Reed Hastings’ $120 million donation to Spelman, Morehouse, and UNCF during the racial reckoning of 2020 showed what’s possible. But sporadic generosity is not a strategy. What’s needed is a systemic culture of giving—an institutional ethos that reorients Black wealth toward Black infrastructure.
Moving from Scandal to Structure
Sharpe, like many public figures, is navigating a complex personal and professional moment. Settling a case of this magnitude inevitably invites scrutiny. But what comes next is more important. Can this moment be a catalyst—not just for personal reflection, but for public responsibility?
Celebrity scandals are ephemeral. Institutions, if cared for, are permanent. The opportunity now is for Sharpe—and others in similar positions—to pivot toward legacy-building. That means using their platforms not only to defend their names, but to elevate their alma maters. To protect not just brand equity, but intellectual capital. To trade spectacle for structure.
A Future Worth Investing In
Savannah State University is not just a school—it is a symbol of survival, intellect, and potential. Its alumni include judges, scientists, teachers, engineers, and businesspeople. It deserves more than to be a footnote in a celebrity controversy. It deserves capital, vision, and strategic philanthropy.
In the end, the numbers don’t lie. A $10 million lawsuit may capture headlines. But a $12 million endowment defines futures. The question is not what Shannon Sharpe did or didn’t do—but what he and others like him will do next.
If fame is fleeting and fortune unpredictable, then perhaps the wisest investment is the one that cannot be taken away: the institutions that built you.
“A hunch is creativity trying to tell you something.” – Frank Capra
Once upon a time in the bustling town of Gradsville, there lived a recent college graduate named Tim. Armed with a shiny diploma and a mountain of student loans, Tim was ready to take on the world, or so he thought. After months of job hunting, he finally landed a gig at a local coffee shop, where he expertly crafted lattes while dreaming of his future as a high-powered executive.
One fateful morning, as he was frothing milk, Tim received an email from his loan servicer. The subject line read: “Your Student Loan Repayment Starts Now!” His heart raced. He opened the email, and there it was: a number so big it could compete with the national debt. Tim squinted at the screen, convinced it was a prank. “This must be a mistake!” he muttered, spilling a little espresso on his apron.
Determined to tackle the situation, he decided to devise a plan. Tim figured if he couldn’t pay his loans, he might as well make the most of his situation. So, he took his trusty old bicycle, painted it bright pink, and outfitted it with a sign reading, “Will Work for Student Loan Payments!” He rode around town, ringing a tiny bell and offering to do odd jobs for anyone willing to pay him in cash.
At first, the townsfolk were amused. Mrs. Jenkins, the elderly lady down the street, hired him to weed her garden. Tim spent hours pulling weeds, but when he presented her with the bill, she handed him a cookie instead. “This is for the effort, dear,” she said sweetly.
Undeterred, Tim pressed on. He mowed lawns, walked dogs, and even became a local celebrity for his “Bicycle Karaoke” sessions, where he belted out off-key renditions of pop songs while pedaling through the park. “I will survive!” he sang, as people threw coins into his basket.
But as the days turned into weeks, Tim realized he was raking in more laughs than cash. One evening, after a particularly exhausting day, he collapsed on his couch, exhausted and broke. Just then, his phone buzzed. It was an alert from his loan servicer: “Your payment is due tomorrow!”
In a moment of desperation, Tim decided to get creative. He hosted a “Loan Repayment Comedy Show” at the coffee shop, charging admission and promising a night of laughter. The townsfolk packed the place, eager to see the local hero make fun of his financial woes. Tim took the stage, and with each joke, he poked fun at his debt, his job, and even his pink bicycle.
By the end of the night, he had raised enough money to make his first payment. The crowd cheered, and Tim realized something important: while student loans were a burden, laughter was the best way to lighten the load.
With a new plan in mind, he turned his bike into a mobile comedy machine, spreading joy and occasionally collecting spare change. And just like that, Tim learned that sometimes, the best way to deal with life’s challenges is to find humor in them—even if it involves a pink bicycle and a lot of bad singing!
In a landscape where the burden of student debt looms over millions of Americans, I offer a glimmer of hope with an innovative proposal. Tax Credits. The creative use of tax credits can be designed to alleviate the financial strain of student loans.
The cost of higher education continues to soar. As of 2025 higher education costs are nearly $35,000 per year for private institutions and over $10,000 for public universities. Over 45 million borrowers now collectively owe over $1.7 trillion in student debt. This staggering figure has become a significant hurdle for graduates entering the workforce, hindering their ability to invest in homes, start businesses, and contribute to local economies.
What exactly is the problem?
The student loan crisis has reached critical levels. According to the Federal Reserve, approximately one in five borrowers is in default or delinquency, while the average monthly payment for federal student loans hovers around $400. For many, this payment is a substantial chunk of their income, especially for young professionals just starting their careers. The implications extend beyond individual borrowers; they ripple through the economy, stifling growth and innovation. We are currently bordering on student loans reaching levels where they pose systemic risk to the entire system.
The proposed solution is tax credits for individuals and institutions.
To address this escalating issue, a two-pronged solution is proposed: tax credits for individuals repaying student loans and tax credits for institutions that implement aggressive debt reduction initiatives.
1. Tax Credits for Individuals: This initiative would provide borrowers with a tax credit for every dollar they pay toward their student loans. Currently only student loan interest is tax deductible up to $2,500 per year. Under this new proposal full student loan payments become tax deductible. For example, someone with a $400 a month student loan payment will pay $4,800 in a full tax year. That $4,800 becomes a tax credit that can be used to lower their income tax burden. This would not only ease the financial burden but also encourage timely repayments, ultimately reducing the total outstanding debt.
2. Additional Tax Credits for Individual payments to the loans of others. Under this new tax provision taxpayers who actively make student loan payments on behalf of other student loan holders can also receive a dollar-for-dollar tax credit.
3. Tax Credits for Private Entities: By aligning private institutional interests with the economic well-being of the public, private institutions would be motivated to contribute to the solution of student loan debt. Imagine Apple or JP Morgan deciding to allocate several billion a year to paying student loans of private citizens in exchange for tax credits. If the top 200 companies in the S&P 500 committed $1 billion each year to paying student loans it would mean that over a 10 year stretch nearly all student loans can be eliminated. Imagine a highly educated populace without the burden of student loan debt.
There are major benefits across the board.
This solution has the potential to benefit various stakeholders, including the wealthy, corporations, higher education institutions and local and state economies.
Wealthy individuals could see tax deductions that encourage more investment into the broader economy with the new capital. Simultaneously they also can benefit from a more educated workforce that drives productivity and innovation into the future.
Corporations would gain from a more skilled labor pool without the financial burden of student debt hindering employees’ productivity. Companies could also leverage tax credits to invest in employee education programs, enhancing workforce skills while reducing tax liabilities.
Higher Education Institutions benefit through potential students and current students now knowing that they can comfortably pursue educational goals without the fear of post graduate debt crippling their ability to perform in the labor force.
Local and state economies would see a revival as graduates with reduced debt would have more disposable income to spend on housing, goods, and services. This consumption can lead to job creation and increased tax revenues, offsetting some of the initial losses from the tax credits.
Like most policy shifts there will be opposition.
Despite its potential benefits, this proposal would likely face opposition from several parties. Conservative fiscal policymakers may argue that tax credits could lead to significant revenue losses for the federal government, exacerbating the national debt. From a social standpoint there is bound to be criticisms of unfairness from individuals that did not attend college. Additionally, some economists may present a potential moral hazard in the form of people focusing too much on education and delaying real world labor pursuit. This has the potential to slow the proliferation of qualified labor into the workforce.
Estimating Revenue Loss for the Federal Government
Implementing such a tax credit system is not without its costs. Estimates suggest that the federal government could lose approximately $20 billion annually in tax revenue if the credits are widely adopted. This figure reflects both the individual tax relief provided to individuals and the institutional incentives for corporations. While this loss could raise concerns about funding for other critical programs, proponents will likely argue that the long-term economic benefits of a more educated populace and a healthy economy would outweigh the initial financial drawbacks.
In conclusion, the proposal for tax credits aimed at alleviating the student loan crisis presents a promising solution to a pressing problem. By aligning the interests of individuals, corporations, and the economy, this approach could pave the way for a brighter future, where education is an investment rather than a burden. As the conversation around student debt continues, it is crucial to explore innovative solutions that can lead to systemic change.
HBCU Money 
This Week in the Economy: May 5–9, 2025
Analyzing the U.S. Economic Calendar Through the Lens of African American Economic Empowerment
Monday, May 5
Tuesday, May 6
Wednesday, May 7
Thursday, May 8
Friday, May 9
HBCU Money Perspective:
This week’s economic events carry clear signals for the African American economy. Slower service sector growth, rising debt reliance, and stagnant productivity reinforce the need for systemic change—particularly in access to capital, support for Black manufacturing, and inclusive monetary policy. As Fed policy direction becomes clearer, HBCUs, Black-owned financial institutions, and policy advocates must prepare to assertively engage with these shifts to protect and grow Black wealth.
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Posted in Economics
Tagged African American Economy, african american unemployment, Black Consumer Credit Trends, black wealth building, Black-Owned Businesses, Federal Reserve and Black Communities, HBCU Economic Commentary, HBCU Economic Insight, HBCU Financial News, Lisa Cook Federal Reserve