CitiGroup published an in-depth look at the economic impact racial discrimination against Black Americans has had, and the results are eye-opening.
Examining factors including the wage gap, housing discrimination, generational wealth-building and much more, CitiGroup's study estimates the economy has lost out on $16 trillion. That's a staggering number that underscores the importance of diversity-focused hiring practices.
On a micro-level, diversity hiring practices build a more productive workforce through a wide range of perspectives offering input. But this study underscores just how profound the impact can be for the whole nation if more employers commit to diversify their workforce.
A few highlights from the study:
Closing the Black racial wage gap 20 years ago might have provided an additional $2.7 trillion in income available for consumption and investment.
Improving access to housing credit might have added an additional 770,000 Black homeowners over the last 20 years, with combined sales and expenditures adding another $218 billion to GDP over that time.
Facilitating increased access to higher education (college, graduate, and vocational schools) for Black students might have bolstered lifetime incomes that in aggregate sums to $90 to $113 billion.
To this end, organizations that don't just prioritize diversity hiring, but offer training and educational incentives as part of contracts, can do even more to help.