Gender Wage Gap Narrowing Masks Economic Strain for Women of Color

The Institute for Women’s Policy Research (IWPR) reports that the wage gap for full-time, year-round workers narrowed last year, returning to post-pandemic levels. However, experts warn this figure is deceptive. Rather than a sign of robust progress, the data reflects an affordability crisis forcing more household members into the labor market to keep pace with rising costs. While men’s earnings plateaued, women’s gains were concentrated in sectors like healthcare and education, which remain historically undervalued.

The human cost of this economic environment is unevenly distributed. IWPR President and CEO Dr. Jamila K. Taylor pointed to the loss of 250,000 jobs held by Black women in 2025, alongside immigration enforcement measures that have destabilized Latina communities. These systemic pressures have pushed the projected date for pay equity for Black women to 2230, and to 2156 for Latina women.

Dr. Kate Bahn, chief economist at IWPR, noted that the narrowing gap does not signal genuine improvement in labor market outcomes. Instead, it highlights a reality where wage growth fails to meet the demands of a high-cost economy. As long as these disparities remain, the modest statistical gains for women overall will continue to leave women of color behind.