Female participation in the labor force is soaring
The Sandbox Daily (3.31.2025)
Welcome, Sandbox friends.
Today’s Daily discusses:
female participation in labor force is soaring
Let’s dig in.
Blake
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Quote of the day
“Anger is the punishment we give ourselves for someone else's mistake.”
- Unknown Monk
Female participation in labor force is soaring
In honor of International Women’s Day being celebrated each March, highlighting the world’s female working population and its impact on the economy, productivity, and markets seems timely.
2020 was tough year for working women.
Female workers, which were disproportionately impacted by the pandemic, saw job participation plunge due to job losses from closure of the global economy and the greater tendency for women to leave the workforce to care for dependents attending school remotely from home.
Separation from the workforce led to concerns that women would have a much harder time rejoining the labor force, further widening the income and wealth gap between males and females.
Fortunately, that could not be further from reality – which is absolutely fantastic.
Not only did female participation in the labor force bounce back quickly when the economy reopened after the pandemic but, in many cases, we’re above pre-pandemic levels.
As shown in the chart below, the participation rate of prime age females (ages 25-54) is higher for many major developed economies compared to their pre-COVID 2019 level.
What’s more, the improvement among females has outpaced that of males in many regions.
A combination of the types of jobs in demand, higher levels of secondary and tertiary education among younger females compared to males, and increased work from home (which allows more flexibility for care of dependents) have all played a role in increasing participation.
In the United States, where employment trends by smaller age cohorts is more readily available, we’ve witnessed a strong surge in participation among Millennial women compared to pre-pandemic.
In fact, the labor force participation rate for females ages 25-34 and 35-44 in 2023 was the highest since data began in 1948.
The rise in female participation bodes well for potential real GDP growth, and if sustained, could have positive implications for the economy and equities in the long-term.
Sources: United Nations, Ned Davis Research
That’s all for today.
Blake
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The other side? Part time jobs are soaring (about +1 million in last year) while full-time jobs are tanking (about -1 million in private sector). So, perhaps women are going back to workforce because... they need the family money...