diff --git a/packages/block-directory/src/store/selectors.js b/packages/block-directory/src/store/selectors.js
index f7e541dd14ed82..f40c6dc1209a54 100644
--- a/packages/block-directory/src/store/selectors.js
+++ b/packages/block-directory/src/store/selectors.js
@@ -4,10 +4,7 @@
 import { createSelector, createRegistrySelector } from '@wordpress/data';
 import { store as blockEditorStore } from '@wordpress/block-editor';
 
-/**
- * Internal dependencies
- */
-import hasBlockType from './utils/has-block-type';
+const EMPTY_ARRAY = [];
 
 /**
  * Returns true if application is requesting for downloadable blocks.
@@ -30,7 +27,7 @@ export function isRequestingDownloadableBlocks( state, filterValue ) {
  * @return {Array} Downloadable blocks.
  */
 export function getDownloadableBlocks( state, filterValue ) {
-	return state.downloadableBlocks[ filterValue ]?.results ?? [];
+	return state.downloadableBlocks[ filterValue ]?.results ?? EMPTY_ARRAY;
 }
 
 /**
@@ -56,16 +53,33 @@ export function getInstalledBlockTypes( state ) {
 export const getNewBlockTypes = createRegistrySelector( ( select ) =>
 	createSelector(
 		( state ) => {
-			const usedBlockTree = select( blockEditorStore ).getBlocks();
 			const installedBlockTypes = getInstalledBlockTypes( state );
+			if ( ! installedBlockTypes.length ) {
+				return EMPTY_ARRAY;
+			}
 
-			return installedBlockTypes.filter( ( blockType ) =>
-				hasBlockType( blockType, usedBlockTree )
+			const { getBlockName, getClientIdsWithDescendants } =
+				select( blockEditorStore );
+			const installedBlockNames = installedBlockTypes.map(
+				( blockType ) => blockType.name
+			);
+			const foundBlockNames = getClientIdsWithDescendants().flatMap(
+				( clientId ) => {
+					const blockName = getBlockName( clientId );
+					return installedBlockNames.includes( blockName )
+						? blockName
+						: [];
+				}
+			);
+			const newBlockTypes = installedBlockTypes.filter( ( blockType ) =>
+				foundBlockNames.includes( blockType.name )
 			);
+
+			return newBlockTypes.length > 0 ? newBlockTypes : EMPTY_ARRAY;
 		},
 		( state ) => [
 			getInstalledBlockTypes( state ),
-			select( blockEditorStore ).getBlocks(),
+			select( blockEditorStore ).getClientIdsWithDescendants(),
 		]
 	)
 );
@@ -81,16 +95,33 @@ export const getNewBlockTypes = createRegistrySelector( ( select ) =>
 export const getUnusedBlockTypes = createRegistrySelector( ( select ) =>
 	createSelector(
 		( state ) => {
-			const usedBlockTree = select( blockEditorStore ).getBlocks();
 			const installedBlockTypes = getInstalledBlockTypes( state );
+			if ( ! installedBlockTypes.length ) {
+				return EMPTY_ARRAY;
+			}
 
-			return installedBlockTypes.filter(
-				( blockType ) => ! hasBlockType( blockType, usedBlockTree )
+			const { getBlockName, getClientIdsWithDescendants } =
+				select( blockEditorStore );
+			const installedBlockNames = installedBlockTypes.map(
+				( blockType ) => blockType.name
+			);
+			const foundBlockNames = getClientIdsWithDescendants().flatMap(
+				( clientId ) => {
+					const blockName = getBlockName( clientId );
+					return installedBlockNames.includes( blockName )
+						? blockName
+						: [];
+				}
 			);
+			const unusedBlockTypes = installedBlockTypes.filter(
+				( blockType ) => ! foundBlockNames.includes( blockType.name )
+			);
+
+			return unusedBlockTypes.length > 0 ? unusedBlockTypes : EMPTY_ARRAY;
 		},
 		( state ) => [
 			getInstalledBlockTypes( state ),
-			select( blockEditorStore ).getBlocks(),
+			select( blockEditorStore ).getClientIdsWithDescendants(),
 		]
 	)
 );
diff --git a/packages/block-directory/src/store/test/fixtures/index.js b/packages/block-directory/src/store/test/fixtures/index.js
index 29ff9d8f071c8e..aaa18a721baf01 100644
--- a/packages/block-directory/src/store/test/fixtures/index.js
+++ b/packages/block-directory/src/store/test/fixtures/index.js
@@ -48,3 +48,9 @@ export const blockList = [
 		innerBlocks: [],
 	},
 ];
+
+export const blockListIds = blockList.map( ( block ) => block.clientId );
+export const blockListNameMap = blockList.reduce( ( acc, block ) => {
+	acc[ block.clientId ] = block.name;
+	return acc;
+}, {} );
diff --git a/packages/block-directory/src/store/test/selectors.js b/packages/block-directory/src/store/test/selectors.js
index 1c26923618e5db..e9f42f1b5ba3ff 100644
--- a/packages/block-directory/src/store/test/selectors.js
+++ b/packages/block-directory/src/store/test/selectors.js
@@ -2,7 +2,8 @@
  * Internal dependencies
  */
 import {
-	blockList,
+	blockListIds,
+	blockListNameMap,
 	blockTypeInstalled,
 	blockTypeUnused,
 	downloadableBlock,
@@ -90,7 +91,10 @@ describe( 'selectors', () => {
 	describe( 'getNewBlockTypes', () => {
 		it( 'should retrieve the block types that are installed and in the post content', () => {
 			getNewBlockTypes.registry = {
-				select: jest.fn( () => ( { getBlocks: () => blockList } ) ),
+				select: jest.fn( () => ( {
+					getBlockName: ( clientId ) => blockListNameMap[ clientId ],
+					getClientIdsWithDescendants: () => blockListIds,
+				} ) ),
 			};
 			const state = {
 				blockManagement: {
@@ -107,7 +111,10 @@ describe( 'selectors', () => {
 
 		it( 'should return an empty array if no blocks are used', () => {
 			getNewBlockTypes.registry = {
-				select: jest.fn( () => ( { getBlocks: () => [] } ) ),
+				select: jest.fn( () => ( {
+					getBlockName: ( clientId ) => blockListNameMap[ clientId ],
+					getClientIdsWithDescendants: () => [],
+				} ) ),
 			};
 			const state = {
 				blockManagement: {
@@ -125,7 +132,10 @@ describe( 'selectors', () => {
 	describe( 'getUnusedBlockTypes', () => {
 		it( 'should retrieve the block types that are installed but not used', () => {
 			getUnusedBlockTypes.registry = {
-				select: jest.fn( () => ( { getBlocks: () => blockList } ) ),
+				select: jest.fn( () => ( {
+					getBlockName: ( clientId ) => blockListNameMap[ clientId ],
+					getClientIdsWithDescendants: () => blockListIds,
+				} ) ),
 			};
 			const state = {
 				blockManagement: {
@@ -142,7 +152,10 @@ describe( 'selectors', () => {
 
 		it( 'should return all block types if no blocks are used', () => {
 			getUnusedBlockTypes.registry = {
-				select: jest.fn( () => ( { getBlocks: () => [] } ) ),
+				select: jest.fn( () => ( {
+					getBlockName: ( clientId ) => blockListNameMap[ clientId ],
+					getClientIdsWithDescendants: () => [],
+				} ) ),
 			};
 			const state = {
 				blockManagement: {
diff --git a/packages/block-directory/src/store/utils/has-block-type.js b/packages/block-directory/src/store/utils/has-block-type.js
deleted file mode 100644
index 8f83f40591f0ff..00000000000000
--- a/packages/block-directory/src/store/utils/has-block-type.js
+++ /dev/null
@@ -1,24 +0,0 @@
-/**
- * Check if a block list contains a specific block type. Recursively searches
- * through `innerBlocks` if they exist.
- *
- * @param {Object}   blockType A block object to search for.
- * @param {Object[]} blocks    The list of blocks to look through.
- *
- * @return {boolean} Whether the blockType is found.
- */
-export default function hasBlockType( blockType, blocks = [] ) {
-	if ( ! blocks.length ) {
-		return false;
-	}
-	if ( blocks.some( ( { name } ) => name === blockType.name ) ) {
-		return true;
-	}
-	for ( let i = 0; i < blocks.length; i++ ) {
-		if ( hasBlockType( blockType, blocks[ i ].innerBlocks ) ) {
-			return true;
-		}
-	}
-
-	return false;
-}
diff --git a/packages/block-directory/src/store/utils/test/has-block-type.js b/packages/block-directory/src/store/utils/test/has-block-type.js
deleted file mode 100644
index b8104b59d54bf9..00000000000000
--- a/packages/block-directory/src/store/utils/test/has-block-type.js
+++ /dev/null
@@ -1,42 +0,0 @@
-/**
- * Internal dependencies
- */
-import {
-	blockList,
-	blockTypeInstalled,
-	blockTypeUnused,
-} from '../../test/fixtures';
-import hasBlockType from '../has-block-type';
-
-describe( 'hasBlockType', () => {
-	it( 'should find the block', () => {
-		const found = hasBlockType( blockTypeInstalled, blockList );
-		expect( found ).toBe( true );
-	} );
-
-	it( 'should not find the unused block', () => {
-		const found = hasBlockType( blockTypeUnused, blockList );
-		expect( found ).toBe( false );
-	} );
-
-	it( 'should find the block in innerBlocks', () => {
-		const innerBlockList = [
-			...blockList,
-			{
-				clientId: 4,
-				name: 'core/cover',
-				attributes: {},
-				innerBlocks: [
-					{
-						clientId: 5,
-						name: blockTypeUnused.name,
-						attributes: {},
-						innerBlocks: [],
-					},
-				],
-			},
-		];
-		const found = hasBlockType( blockTypeUnused, innerBlockList );
-		expect( found ).toBe( true );
-	} );
-} );