During the height of the COVID-19 pandemic, millions of women left the workforce. The causes of the exodus ranged from burnout and layoffs to struggles with childcare and gender pay disparities. Now, several years later, new data shared by the Brookings Institution is showing prime-age women (ages 25 to 54) are driving the post-pandemic rebound for the US labor market, with moms of young children leading the pack. Given the trend they're seeing, employers who focus on making themselves attractive to this talent pool over the next few years could see big payoffs.
Women are coming back stronger
While the labor force participation rate for both genders are returning to pre-pandemic levels this year, the most recent figures from Q2 2023 are unveiling the driving forces behind the market rebound. According to new findings from Brookings, the labor force participation rate for prime-age women has not only recovered but has exceeded its all-time high, with a rate of nearly 78%.
As you can see in the accompanying chart, the participation rate for prime-age women is trending upward heading into the next two years as opposed to their male counterparts who are trending slightly downward.
Source: US Bureau of Labor Statistics
Women with young children are moving the needle
Delving further into the numbers for prime-age women, Brookings shows us that mothers of young children are driving that upward trajectory. Women with children under the age of five are now exceeding their pre-pandemic peak by more than 1.4% - the most rapid growth compared to women with older children or no children.
There's also evidence to show that “[a]mong mothers with young children, those who are highly educated, married, or foreign-born are more likely to be in the labor force now than they were before the pandemic.”
Though the wage gap continues, there's hope on the horizon
It's worth noting that the wage gap continues to be a concern for women in the US. As illustrated in the chart below, the early 1980s through early 2000s saw the biggest gains where women went from making 65 cents to the dollar up to 81 cents. Progress in the following two decades stalled though, with only two more cents added. There is hope on the horizon. According to the latest numbers from the US Bureau of Labor Statistics, the median weekly earnings for women in second quarter of 2023 was $1,001 where men came in at $1,185 - potentially bringing the ratio for this year up another couple cents.
Source: US Bureau of Labor Statistics
What it means for employers
There were close to 9 million job openings in the US as of the end of July this year - layer that number with an unemployment rate below 4% and employers are bound to face challenges filling open roles. It's important to consider the makeup of the talent pool in these situations. Clearly moms of young children are ready and willing to get back into the workforce. In addition to fair and equitable pay, they're seeking employers who will provide them with flexibility and understanding as they balance their workload with their responsibilities at home.
One way to attract these working moms is to ramp up maternity leave and/or the support offered post-leave, particularly when it comes to breastfeeding. Given the age of their children (under age five), many of these women coming back to the workforce may be currently breastfeeding or will be in the future as they grow their family. Offering boobbaticals or enhanced pumping accommodations is a creative way to differentiate yourself as an employer. Want to learn more? Reach out to us and we can help analyze your current offerings and make recommendations on how to take them to the next level.
