Future CEOs, erased: the economic cost of losing Black women in the workforce

ary·LeadershipFuture CEOs, erased: the economic cost of losing Black women in the workforceBy Katica RoyBy Katica Roy Katica Roy is the CEO and founder of Denver-based Pipeline, a SaaS company that leverages artificial intelligence to identify and drive economic gains through intersectional gender equity

Katica is a highly regarded gender economist and serves on Bloomberg’s New Economy Forum, Fast Company’s Impact Council, and the US Small Administration’s National Women’s Council

This isn’t a seasonal fluctuation or statistical footnote

It’s a strategic failure with long-term consequences

Black women have long been a cornerstone of America’s economic engine—driving participation, powering key industries, and anchoring family incomes

Now, that foundation is fracturing

And the fallout is more than short-term—it’s a direct threat to corporate succession planning, innovation, and growth

The U.S. economy has always dep on Black women’s labor

In fact, no group of women in America has historically had higher labor force participation than Black women

Yet today, we’re watching them disappear from the workforce at an alarming rate—with little alarm and even less intervention

The consequence? A corporate succession crisis in slow motion

Because when companies lose Black women today, they aren’t just losing high-performing contributors—they’re forfeiting the very leaders their future stability depends on

That’s not a representation gap

That’s a pipeline collapse

And the exits we’re witnessing this year threaten to push that collapse into freefall

If we’re serious building inclusive leadership, that number should set off alarms in every boardroom in America

Because companies cannot diversify the C-suite with talent that’s no longer in the building

This isn’t a theoretical concern

Today’s middle managers are tomorrow’s senior vice presidents

Today’s directors become future CEOs

And the current rate of attrition is effectively erasing Black women from that trajectory before they even reach the inflection point

What’s driving the exodus—and why it’s compounding The reasons Black women are leaving the workforce aren’t mysterious

They’re measurable, structural, and cumulative. 1

Disinvestment in DEI is acting a demand signal

DEI grams were deprioritized or dismantled

Corporate partnerships with Black-led organizations were paused or cut entirely

When inclusion becomes optional, Black women read between the lines: you’re not wanted here. 2

Black women are bearing the brunt of layoffs—again

In sectors education, government, and healthcare, Black women are overrepresented in roles most vulnerable to cuts and underrepresented in roles most ly to be tected

April’s jobs report showed this ly

These aren’t just job losses—they’re career disruptions

And in a system that rewards uninterrupted tenure, they stall upward mobility. 3

The psychological toll of bias and burnout is accelerating exit velocity

Black women face some of the highest rates of bias, isolation, and microaggressions in the workplace

Many have described being “worn out from discrimination in corporate America,” a key reason why Black women are increasingly choosing entrepreneurship—not as a passion ject, but as a survival strategy. 4

Structural inflexibility is forcing unnecessary trade-offs

Black women are overrepresented in rigid, low-wage occupations— health aide and administrative support—that lack paid leave, schedule flexibility, and caregiving support

As a result, they face impossible trade-offs: they’re more ly than white women to be penalized fessionally for caregiving despite being equally ambitious in their careers. 5

Political backlash has made equity itself a liability

The politicization of DEI has created a chilling effect across sectors

At Walmart, holders warned that abandoning equity grams could “erode long-term value.” The cost of retreat isn’t just reputational

The cost of corporate complacency Let’s be : this is not just a diversity blem

This is a ductivity, fitability, and performance blem

The exodus of Black women from the workforce is draining companies of essential talent, perspective, and leadership potential

It’s also leaving money on the table—lots of it

And yet, many companies are minimizing rather than mobilizing

Some are treating this workforce departure as a blip

A moment that will self-correct

Leadership pipelines don’t bounce back on their own

Once they erode, they take decades to repair

And every high-potential employee who exits the workforce today is one less candidate in the board room tomorrow

What must change—and why now Companies that want to compete in the future must act now to retain and accelerate Black women’s talent

That means: ● Tracking attrition and motion by race and gender—at all levels, not just entry roles. ● Enforcing pay transparency and correcting compensation gaps. ● in sponsorship grams that give Black women access to power, not just advice. ● Standing firm on equity commitments, even when politically inconvenient

Above all, it means recognizing this moment for what it is: a turning point

Black women have shown up for the economy time and time again

They’ve led, built, innovated, and persisted

If companies fail to show up for them now, they’ll be gambling with their own future—undermining innovation, growth, and resilience

Because when Black women leave the workforce, we don’t just lose ductivity

Explore this year's list.