The exit economy is here. Black Women are paying the highest price – Fortune

Report on Economic Disparities and Their Impact on Sustainable Development Goals

Introduction: A Structural Crisis Undermining SDG 5 and SDG 8

Recent labor market analysis, based on the November 20, 2025, Jobs Report, reveals a structural economic crisis that disproportionately affects Black women, directly undermining progress toward key Sustainable Development Goals (SDGs). Since February, an estimated 600,000 Black women have been economically sidelined through job losses, unemployment, and forced exits from the labor force. This trend is not a cyclical downturn but a systemic failure that contravenes the principles of SDG 5 (Gender Equality) and SDG 8 (Decent Work and Economic Growth). The broader economy’s anemic growth, adding only an average of 62,000 jobs per month over the last quarter, masks a severe and targeted impact on this demographic.

Analysis of Labor Market Exclusion and its Contradiction to SDG 10

The economic exclusion of Black women represents a significant challenge to SDG 10 (Reduced Inequalities). The data indicates a multi-faceted crisis:

• Job Losses: 297,000 jobs have been lost by Black women since February.
• Unemployment: An additional 223,000 remain unemployed.
• Labor Force Exits: 75,000 have been forced out of the labor force entirely.

These forced exits are estimated to reduce U.S. GDP by $9.2 billion in the current year, demonstrating a direct conflict with the objectives of SDG 8. The intersectional nature of this inequality is stark; if White women were impacted at the same rate, it would equate to 3.05 million individuals being economically sidelined. Furthermore, 341,000 Black women, who represent the most educated female cohort in the nation and are often primary breadwinners, remain missing from the labor force since the pandemic began, threatening household stability and future economic resilience.

The Widening Pay Gap: A Setback for SDG 5 (Gender Equality)

Progress toward gender equality is regressing, as evidenced by a widening pay gap. For the first time in decades, the annual gender pay gap has widened for two consecutive years. This trend particularly disadvantages Black women and highlights a failure to meet SDG 5 targets.

• Overall Gender Pay Gap: Women earn 81 cents for every dollar earned by men.
• Black Women’s Pay Gap: Black women earn only 71 cents weekly and 66 cents annually compared to white, non-Hispanic men.

Official unemployment figures further obscure the crisis. While the reported unemployment rate for Black women rose to 7.5%, a figure already well above the benchmark for full employment, the real unemployment rate is 10.23% when accounting for those pushed out of the labor force. This discrepancy masks the true scale of economic inequality, hindering effective policy responses aligned with SDG 10.

Job Quality and Sectoral Disparities: A Challenge to SDG 8 (Decent Work)

Recent job gains for Black women are concentrated in sectors that fail to provide decent work as defined by SDG 8. Employment growth is occurring in low-wage industries, while jobs are being lost in more stable, higher-paying sectors.

• Low-Wage Gains: A net gain of 10,700 positions occurred in health care, food services, and social assistance, where average weekly pay is significantly lower than in other industries.
• High-Wage Losses: Black women lost 1,500 jobs in the government sector and saw no gains in finance, transportation, or professional services.

This trend reinforces occupational segregation and traps Black women in low-paying roles, perpetuating a cycle of economic vulnerability that is antithetical to the goals of sustainable economic growth and decent work for all.

The Widening Employment Gap and National Implications

A significant divergence in labor market participation between men and women is accelerating, creating an unsustainable economic structure. While 673,000 women remain absent from the labor force since the pandemic, 879,000 men have entered it since February alone. This represents a redistribution of economic opportunity rather than a recovery. The swing between Black women’s job losses (-297,000) and men’s gains (+621,000) since February approaches one million jobs, widening the gender employment gap by 34% in just two months. This structural imbalance threatens long-term national stability and the viability of social support systems.

Policy Recommendations to Align with Sustainable Development Goals

To address this structural crisis and realign economic policy with the SDGs, the following actions are recommended:

1. Enforce Pay and Opportunity Equity: Implement and enforce robust policies to eliminate gender and racial pay gaps, directly addressing SDG 5 and SDG 10.
2. Rebuild Inclusive Pipelines: Invest in programs that create pathways for Black women into higher-wage sectors such as technology, finance, and government, promoting SDG 8.
3. Reform Economic Modeling: Require the Federal Reserve to incorporate labor force exits into its employment models to ensure policy is based on a complete and accurate assessment of the labor market, in line with the goals of SDG 8.
4. Implement Targeted Investment: Design economic stimulus and investment programs specifically to support and retain women, particularly Black women, in the workforce, thereby advancing SDG 1 (No Poverty), SDG 5, and SDG 8.

Conclusion: The Urgency of Addressing Structural Divides for Sustainable Development

The current economic trajectory, characterized by the exclusion of Black women from the labor market, is unsustainable. Ignoring this “Exit Economy” will have cascading negative consequences for households, communities, and national economic health. Achieving the Sustainable Development Goals requires a concerted effort to dismantle these structural barriers and ensure that economic growth is inclusive and equitable. Failure to act will erode national prosperity and make the targets for poverty reduction, gender equality, decent work, and reduced inequalities unattainable.

1. Which SDGs are addressed or connected to the issues highlighted in the article?

SDG 5: Gender Equality

• The article’s central theme is the economic disparity and discrimination faced by women, particularly Black women. It details how they are being “sidelined” from the economy, which directly relates to the goal of achieving gender equality and empowering all women and girls. The text highlights a “widening of the gender gap” in employment, where men’s job gains are surging while Black women face significant job losses.

SDG 8: Decent Work and Economic Growth

• This goal is addressed through the article’s focus on employment, unemployment, wage gaps, and overall economic productivity. The discussion of nearly 600,000 Black women being “economically sidelined,” the concentration of job gains in “the lowest-paying” sectors, and the loss of an “estimated $9.2 billion from U.S. GDP” all connect directly to the principles of achieving full, productive, and decent work for all, which underpins sustainable economic growth.

SDG 10: Reduced Inequalities

• The article uses an intersectional analysis to highlight inequalities based on both race and gender. It explicitly contrasts the economic outcomes of Black women with those of White women and men, demonstrating a severe and growing inequality. Statements like “Black women’s gap is even wider” regarding pay and the description of the labor market being “carved up with precision” to cut out women of color speak directly to the goal of reducing inequality within and among countries.

2. What specific targets under those SDGs can be identified based on the article’s content?

Targets under SDG 5: Gender Equality

1. Target 5.1: End all forms of discrimination against all women and girls everywhere. The article describes a “structural crisis” where Black women are disproportionately losing jobs and being pushed out of the labor force, which is evidence of systemic economic discrimination.
2. Target 5.5: Ensure women’s full and effective participation and equal opportunities for leadership in economic life. The article shows this target is not being met, stating that 673,000 women “remain missing from the labor force” and are being locked out of “higher-wage industries” like finance and professional services.

Targets under SDG 8: Decent Work and Economic Growth

1. Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men… and equal pay for work of equal value. The article directly contradicts the achievement of this target by citing a “real unemployment rate for Black women is 10.23%,” a significant pay gap where Black women earn “just 66 cents annually compared to White, non-Hispanic men,” and job growth only in low-wage sectors.

Targets under SDG 10: Reduced Inequalities

1. Target 10.2: By 2030, empower and promote the social, economic and political inclusion of all, irrespective of sex, race, ethnicity… The article details the economic exclusion of Black women, noting that since February, their job losses combined with men’s gains have resulted in a “swing… [of] 1 million jobs,” describing it as a “redistribution of opportunity” away from this demographic.
2. Target 10.3: Ensure equal opportunity and reduce inequalities of outcome. The widening employment and pay gaps described in the article are clear examples of inequalities of outcome. The author’s call to “Enforce pay and opportunity equity” is a direct appeal to actions that would support this target.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Directly Mentioned Indicators

• Unemployment Rate (relates to SDG 8.5.2): The article provides specific unemployment figures for Black women, noting a rise from “5.4% in February to 7.5% in September” and a “real unemployment rate” of 10.23% when accounting for those pushed out of the labor force.
• Gender and Racial Pay Gap (relates to SDG 8.5.1): The article explicitly measures the pay gap, stating that “women earn just 81 cents for every dollar men earn” and that for Black women, this gap is wider at “71 cents on the dollar weekly and just 66 cents annually compared to White, non-Hispanic men.”

Implied Indicators

• Labor Force Participation Rate by Gender and Race: The article provides the raw numbers for this indicator, stating “341,000 Black women are still missing from the labor force since the pandemic began” and that since February, “879,000 men have entered the labor force,” highlighting a significant divergence.
• Job Growth/Loss by Sector, Gender, and Race: The analysis of where jobs are being gained and lost serves as a crucial indicator of economic opportunity. The article notes that job gains for Black women are concentrated in low-paying sectors like “health care, food services, and social assistance,” while they lost jobs in the “higher-paying sector” of government.
• Contribution to GDP by Demographic Group: The estimate that forced exits of Black women are “draining an estimated $9.2 billion from U.S. GDP this year” is a powerful indicator of the macroeconomic cost of this inequality.

4. Summary Table: SDGs, Targets, and Indicators

Source: fortune.com