November 2nd 2023.
A new report from Goldman Sachs’ Black Women Initiative is shedding light on the difficult financial circumstances many Black women in the U.S. are currently facing. The “Money Matters: One Million Black Women Economic Mobility Survey” is a first-of-its-kind report that surveyed over 2,500 adults, including 600 Black women, about their finances.
The findings show that 40% of Black women in the United States have annual household incomes under $50,000, compared to only 24% of adults in the US who earn the same amount. What’s more, 71% of Black women report living paycheck to paycheck, compared to just 63% of the general population.
This lack of financial security has led to a number of other disparities for Black women, including access to quality, affordable childcare, lack of career advancement, inadequate health insurance, and more. The report found that 42% of Black women who work full-time or part-time lack opportunities for career advancement or promotion, compared to 35% of US adults who said the same.
Additionally, only 43% of Black women receive health insurance through their employer, in comparison to 53% of adults nationwide. When it comes to retirement savings, only 49% of Black women have a 401 or other retirement savings, compared to 62% of the overall US adult population. And, paid sick leave sees only 50% of Black women receiving the benefit compared to 56% of the rest of the general population.
The report also found that 19% of Black women on the job search report childcare as a barrier affecting their job search, while only 11% of US adults say the same. In spite of this, 63% of Black women are optimistic about their financial futures.
Goldman Sachs hopes the report will help spark systemic change and close the earnings gap for Black women. According to Goldman Sachs, if Black women were able to grow financially, the US annual GDP could rise by as much as 2.1% each year and generate 1.2 to 1.7 million US jobs since Black women are the fastest-growing group of entrepreneurs in the country.
Asahi Pompey, Global Head of Corporate Engagement and President of the Goldman Sachs Foundation said, “Goldman Sachs research has shown that one of the fastest ways to accelerate change and effectively begin to address the racial wealth gap is to listen to and invest in Black women.”
The report’s findings shed light on the critical workforce disparities impacting Black women and families across the country. Goldman Sachs’ Black Women Initiative hopes that this report will help to spur change and create more opportunities for financial stability for Black women in the US.
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