WOMEN AND WORK POST-COVID: WHERE ARE THEY NOW?
Women’s economic security is an issue I spend lot of time thinking, talking, and writing about. So naturally I’ve been wondering how women are faring post-COVID when it comes to work.
As the well-documented “She-Cession” showed us, the pandemic had a dramatic impact on women’s participation in the workforce – which affected their ability to pay for day-to-day expenses, much less save for retirement.
So, where are they now? The short answer is: there’s good news and bad news.
First, the good:
The labor force participation rate of women age 25-54 has rebounded and is now higher than it was in February 2020.? In fact, the June 2023 numbers were the highest rate ever recorded by the Bureau of Labor Statistics. While slightly lower, the latest numbers remain an improvement compared to pre-pandemic.
Now for the bad:
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The labor force participation rate for women age 55+ is still NOT back to pre-pandemic levels, despite nearly a full percentage point increase from June to August this year.
What the numbers don’t tell us is why fewer older women are working or actively looking for work.
Perhaps those close to retirement at the start of the pandemic decided to retire early, and they haven’t felt the need to jump back into the workforce. Others may have taken on caregiving responsibilities or feel like it would be too hard to find a new job after so much time away.?As a recent Axios story points out, “age discrimination persists in offices,” and we know that job seekers age 55+ are significantly more likely to be long-term unemployed than their younger counterparts.
All this said, the Bureau of Labor Statistics still predicts women 55+ will have the fastest growth in labor force participation over the next decade.?This is definitely something worth watching.?
It’s likely not a coincidence that this is when the majority of Gen Xers will be age 55+.? According to a new report from the National Institute on Retirement Security, the retirement outlook for these folks is “dismal,”? with half of all GenX women having less than $6,000 in retirement savings.?So while many will continue working because they want to, most will stay in the workforce because it’s a necessity to make ends meet.