In a concerning shift, nearly 300,000 Black women have exited the U.S. labor force in just three months, according to new data — a decline that marks the steepest drop in labor force participation for the group since the early days of the pandemic.
For the first time in over a year, Black women’s participation rate has fallen below that of Latinas. More than 518,000 Black women remain missing from the workforce compared to pre-pandemic levels. Economists say the trend reflects not individual decisions, but structural shifts and federal policy choices that have targeted key employment sectors for downsizing.
Much of the decline stems from cuts across public-sector agencies like the Department of Education and the Department of Health and Human Services, where Black women have historically held stable, middle-income jobs. Some departments have seen staffing reductions of up to 50 percent.
Black women account for more than 12 percent of the federal workforce — nearly twice their share of the labor force overall — a statistic that highlights their reliance on government employment for economic security. Since early 2025, budget-driven “efficiency reforms” have led to sweeping layoffs in education, healthcare, and social services sectors where Black women are overrepresented.
The fallout is not limited to job losses. Diversity, equity, and inclusion programs are also being scaled back across both public agencies and private companies. Job postings for DEI roles have fallen by 43 percent over the past two years.
Courts are playing a role, too. A 2024 federal ruling blocked a grant program aimed at Black women entrepreneurs, citing civil rights violations, a decision that has stifled similar equity efforts.
At the same time, Black women face steep inflation, especially on gendered goods like clothing and footwear, where prices are 177 percent higher on average than similar items for men. They also carry the highest levels of student loan debt and are among the most vulnerable to job displacement from automation.
Experts warn that the impact goes beyond individuals. With over half of Black households led by breadwinner mothers, entire families — and local economies — are at risk. Economists estimate that each percentage-point drop in women’s labor force participation costs the U.S. $146 billion in GDP.
The stakes are clear: when Black women are forced out of work, the entire economy feels the loss.