How pay equity for Black women could create up to 1.7 million jobs
When Black women win, the economy wins.
On International Women’s Day, we want to take a minute to celebrate Black women and show the data that proves when Black women win, the economy wins.
As you may have heard, Black women have emerged as one of the most educated demographic groups in the U.S., earning degrees at higher rates across all levels of higher education — so it is no surprise that many are breaking barriers in industries where representation has been historically low, including business, law, medicine, STEM, and academia.
With that said, Black Women's Equal Pay Day in 2025 is on Sunday, July 27 — this day highlights the wage gap between Black women and white men. And according to the AAUW:
Black women working full-time, year-round were paid 66 cents, and all earners (including part-time and seasonal) were paid 64 cents for every dollar paid to non-Hispanic white men in 2023.
What would happen if Black women were paid equitably?
Black women are key drivers of the U.S. economy, yet the earnings gap continues to hold back not just individuals, but the entire country. Goldman Sachs shared research that states, if Black women were paid equitably, it could create up to 1.7 million jobs and boost U.S. GDP by as much as 2.1% per year.
US GDP, or Gross Domestic Product, is a measure of the total value of all goods and services produced in the United States. It's a key indicator of the country's economic health.
This intersectional data goes beyond racial or gender equity and becomes a much larger economic issue for multiple reasons. Closing the wage gap would create jobs and boost GDP because higher wages fuel economic growth, driving demand across multiple industries.
How?
More Spending Power = More Demand for Goods & Services
Higher wages mean more disposable income.
When spending increases, businesses expand to meet demand, requiring more workers.
Black women are major consumers in key industries like beauty, fashion, housing, and food.
Check out our full Black Equity Guide for more data on how Black consumers, especially women, are shaping the beauty industry.
Small Business Growth & Entrepreneurship
According to a 2023 GoDaddy Venture Forward research initiative:
Black entrepreneurs own 15% of US microbusinesses, with more than two-thirds of those owned by Black women.
Black women remain the fastest-growing group of entrepreneurs, more than doubling since August 2019.
Black women total 10% of total entrepreneurs surveyed for the latest report, representing a 70% increase in the number of Black women-owned businesses started prior to the pandemic.
With higher wages and wealth accumulation, more Black women could start and scale businesses. This creates jobs, supplier opportunities, and community reinvestment.
Increased Tax Revenue = More Public Sector Jobs
Higher wages generate more tax revenue at the local, state, and federal levels.
This allows for investment in public services like education, healthcare, and infrastructure, leading to more government jobs.
Economic Multiplier Effect
When people have more income, they spend it in their communities.
This ripples through the economy, creating job growth in retail, hospitality, real estate, healthcare, and beyond.
Bottom Line: Pay Black women what they’re worth, and watch the entire economy benefit.
Be informed.
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Now this is the Economics lesson I missed 20 years ago. The way you were able to simplify the big data into shout-worthy insights…is wonderful!
The only way we survive as a country is to see the forest through the trees and let go of what was and focus on what it could/should be.