DEI’s Collapse and the Cost to Black Women
The war on Diversity, Equity, and Inclusion (DEI), fueled by the current administration’s Executive Orders 14151 and 14173, has sharply increased unemployment among Black women.
A Financial Times commentary from mid-2025 warns of a steadily declining U.S. job market, citing slowing job growth and shrinking labor force participation. While the national unemployment rate hovered around 4.2% in May, according to the Bureau of Labor Statistics, this number masks significant disparities, particularly for Black women. Since January 2025, Black women’s unemployment rate has risen each month, increasing by approximately 0.5 to 1 percentage point per month.
Meanwhile, white women’s unemployment has remained stable at 3.1%. This pattern coincides with DEI policy reversals across both the federal government and private sector. In January, the current administration issued two executive orders which dismantled federal DEI programs and removed contractor diversity reporting requirements. These shifts shifts have triggered mass layoffs and stripped away workplace protections, disproportionately affecting Black women.
Black women are significantly overrepresented in federal government employment, making them especially vulnerable to policy changes that target public sector equity initiatives. According to data from the U.S. Office of Personnel Management, Black women make up roughly 12% of the federal workforce, compared to just 7% of the overall U.S. labor force. Many have historically sought stability and upward mobility in public service jobs, where equal opportunity and diversity mandates have played a critical role in mitigating workplace discrimination.
However, those protections are disappearing. As a result, departments that once prioritized diverse hiring and retention have halted DEI efforts entirely, leaving Black women disproportionately affected by job cuts and career stagnation. Recent reports indicate that over 69,000 federal positions were slashed by mid-2025, many in roles tied to DEI or held by Black women in administrative, training, and human resources departments.
The disproportionately high unemployment rate among Black women in 2025 reflects deeper structural inequities embedded in the U.S. labor market. Black women face added challenges re-entering the workforce due to systemic barriers, such as occupational segregation, wage disparities, and discriminatory hiring practices. A 2024 study by Yang & Murali found that bias in the hiring process accounts for up to 52% of the racial employment gap, underscoring the persistence of exclusionary practices. The National Partnership for Women & Families warns that without meaningful DEI protections, these disparities are likely to grow, particularly in workplaces that are no longer accountable to inclusive recruitment and advancement policies.
Despite being among the most educated groups in the United States, Black women continue to face structural barriers that push them into lower-paying or precarious job sectors, a dynamic known as occupational segregation. According to the National Center for Education Statistics, in the 2020–2021 academic year, Black women earned 70% of all master’s degrees awarded to Black students and held the highest percentage of graduate degrees among women of color across all racial groups. Yet, this academic achievement rarely translates to equitable employment outcomes.
Black women remain disproportionately concentrated in sectors such as administrative support, education, and healthcare services, roles that are often undervalued and underpaid. This disconnect between qualification and job opportunity reflects how systemic bias and occupational segregation continue to limit access to higher-paying, leadership-track positions, even for the most credentialed workers.
The persistent wage gap and occupational disparities Black women face also play a significant role in widening the racial wealth gap across generations. On average, Black women are paid just 66 cents for every dollar paid to white, non-Hispanic men, and Black mothers earn only 52 cents on the dollar, according to data from the National Women’s Law Center.
Over the course of a 40-year career, this gap results in more than $900,000 in lost earnings for Black women working full time. These income disparities compound over time, limiting access to wealth-building opportunities like homeownership, retirement savings, and educational investments. As highly educated Black women remain concentrated in lower-paying sectors and face ongoing barriers to advancement, the rollback of workplace equity protections only deepens the long-term economic divide between Black and white families in America.
The steady rise in Black women’s unemployment and the rollback of DEI protections signal a deepening divide in the U.S. labor market, one that economists and civil rights advocates warn cannot ignore. Experts at the Joint Center for Political and Economic Studies have identified Black women as “economic bellwethers,” whose employment trends often foreshadow broader national shifts. The National Urban League and NAACP have called the current moment a civil rights and economic crisis, urging federal policymakers to restore and strengthen DEI policies across public and private sectors.
Without intentional equity investment, qualified Black women will remain sidelined, and the racial wealth gap will widen. Closing this gap requires more than recovery and statistics. It demands long-term commitment to inclusion, enforcement, and economic justice in the future of America.