In 2025, America made a $37 billion mistake. That’s the estimated cost of losing 350,000 Black women from the workforce in just a few months, a mass exodus that economists say is not a seasonal dip but a structural crisis with long-term consequences, as reported by The Week.
At first glance, some may view this as a challenge confined to one demographic. In reality, it represents a systemic breakdown with ripple effects that weaken the broader U.S. economy, stifle innovation, shrink future job opportunities, and even undercut America’s global competitiveness.
This crisis puts America’s competitiveness, innovation, and long-term growth at risk. Possible outcomes to watch for include:
The Strategic Cost of Erasing a Viable Pipeline
The 2% drop in Black women’s labor force participation over the past several months has “sucked over $37 billion out of U.S. GDP,” said gender economist Katica Roy at ABC News. This is the economic cost of “gender policy ignorance.” The immediate $37 billion loss is measured in wages and output. But the real cost compounds over time. Every woman who is pushed out takes with her not only today’s productivity but also tomorrow’s leadership potential, innovation capacity, and entrepreneurial ventures that may never materialize. Fortune called this a “strategic failure” for precisely this reason: the narrowing of future pipelines means fewer CEOs, fewer innovators, and fewer investors driving new opportunities.
Black women have long filled roles that support institutional efficiency, from federal agencies to education to healthcare. Sweeping cuts in federal jobs and the dismantling of corporate DEI programs have disproportionately destabilized these footholds, as MSNBC reported. The result is a brain drain that does not just weaken one sector but reverberates across entire industries.
When leaders and creators are systematically pushed out, so too are the businesses, technologies, and jobs they would have built. Imagine 350,000 fewer professionals mentoring others and guiding youth, fewer entrepreneurs hiring locally, and fewer consumers driving demand in their communities. Job creation slows, local economies tighten, real estate markets feel the strain, and America’s global competitiveness weakens as innovation pipelines shrink.
The Global Consequences
At a time when global competition is fiercer than ever, the U.S. cannot afford to sideline a talent pool this significant. China and other global players are aggressively investing in STEM, AI, and advanced manufacturing talent pipelines while strategically developing and optimizing their countries’ human capital. Meanwhile, it appears that the U.S. is allowing a significant portion of its skilled workforce to be sidelined, prioritizing prejudice over talent, strategy, and efficiency. This not only undermines domestic productivity but also weakens America’s bargaining power and competitiveness in global markets.
A shrinking workforce also limits GDP growth. The Bureau of Labor Statistics has long warned that labor force participation is directly tied to economic expansion. Every percentage point of participation matters. Losing 350,000 workers in one demographic group today accelerates a long-term trend that could make the U.S. less competitive tomorrow.
Why This Hits Everyone, Not Just Black Women
It’s tempting for some to view this as a “community-specific” issue. But that is shortsighted and surface level. When one group is systematically pushed out, the entire economy pays. Consider:
Housing: When earners exit the workforce, fewer homes are purchased, and more mortgages fall behind. Neighborhood stability weakens.
Economic Participation: When primary earners lose work, spending and investment in local economies decline, weakening overall community resilience.
Entrepreneurship: Black women are the fastest-growing group of entrepreneurs in the U.S. Losing them in traditional jobs slows business formation, which drives local job creation and consumer spending.
Tax Base: Exits reduce income tax contributions, putting stress on public services, local government and education systems.
Tech & AI: Every Black woman pushed out of the tech sector, for example, is a missed opportunity to drive breakthroughs in AI, software, and emerging tech, slowing progress and diminishing America’s global leadership.
Over time, the $37 billion loss compounds into hundreds of billions. The economy doesn’t collapse overnight. Instead, it erodes gradually through fewer opportunities, weaker safety nets, and slower innovation. Eventually, the effects touch every community, showing how systemic discrimination ultimately becomes everyone’s problem. When others remain complicit, they share in the responsibility and the burden, as the consequences spread through the economy and society as a whole.
4 Things Black Women Can Do Now
Solutions cannot wait for corporate or government intervention alone. While systemic reform is necessary, there are immediate strategies Black women can use to strengthen their economic position:
- Build and Scale Ownership: From startups to side hustles, scaling ownership ensures independence from biased corporate structures. The key is forming strategic partnerships with people and organizations that share your vision and goals, rather than spending time convincing, educating, or performing emotional labor for those who don’t. Cooperative models and digital platforms can amplify reach and resources, providing leverage and efficiency while preserving focus on growth and impact.
- Invest in Networks: With the rollback of DEI programs and ERGs, building independent networks is critical. Professional associations, digital communities, and peer mentorship can replace what corporations dismantle. Additionally, using platforms like LinkedIn to connect with peers that share similar perspectives, hosting events through Eventbrite, or creating online groups can strengthen these networks, provide mentorship opportunities, and open doors to collaborations and entrepreneurial ventures.
- Turn Skills Into Portfolios: Turning your expertise into tangible skills that create value through consulting, content creation, or online courses can diversify income streams, open the right doors, and provide a foundation for building lasting institutions. Leveraging technology to share and monetize these skills not only protects against economic instability but also positions you to influence industries and create scalable impact.
- Prioritize Financial Strategy: Proactive financial planning, estate building, and family or group investment funds create security and long-term stability in the face of systemic inequity.
The Risks of Inaction in Today’s Economy
For companies, policymakers, and citizens who remain silent, the message is clear: inaction allows the problem to grow, and the consequences will affect everyone. Reduced job creation, slower GDP growth, and diminished global competitiveness are inevitable outcomes. While DEI rollbacks may appear politically expedient, sidelining 350,000 skilled workers is not a neutral decision. It represents a significant economic liability that threatens the stability and efficiency of the broader system. The costs of remaining complicit during this critical moment are too high.
The reality is straightforward. Black women’s participation strengthens America’s economic future, and their absence weakens it. This is not charity, nor politics, it is economics. The $37 billion mistake affects all of us. Historically, Black women have been central to federal agencies and healthcare systems. Leaders like Mary McLeod Bethune, who founded the National Council of Negro Women and advised presidents on education and labor policy, helped build professional pipelines and strengthen public administration, creating opportunities that benefit most Americans today. During the Johnson and Kennedy administrations, Black women nurses and administrators expanded public health programs, improving access and efficiency nationwide while also creating new sectors and jobs. These contributions played a key role in positioning the U.S. as a global leader in education, governance, and healthcare delivery.
Right now, we have the foresight to address this crisis and prevent the cost from escalating. By investing in inclusive institutions and funds, holding elected officials accountable to enact community- and culturally-affirming policies, advocating for agencies to hold companies accountable, supporting entrepreneurial ventures, and building independent networks, we can not only recover lost ground but also tap into new opportunities for growth and innovation.