The new year kicked off with new data that showed the economy finished 2023 strong: earnings increased, even when accounting for inflation; the labor market added 2.7 million jobs last year; and December’s overall unemployment rate was just 3.7 percent.
Women in particular had a good year: they accounted for 54 percent of all jobs added last year, averaged lower unemployment rates and had higher levels of labor force participation than in 2022. Remarkably, the unemployment rate for prime-age women – those ranging in age from 25-54 – was 3.0 percent, the lowest since 1953 and the second-lowest ever, while their participation hit record highs.
When women who want to work for pay are able to find jobs, it increases their economic security and means that they have more power, both individually and in the economy overall. More workers also benefits the economy as a whole, injecting money into local economies and increasing the nation’s GDP. But despite this good news, U.S. women’s participation lags far behind that in comparable countries like Canada and Germany – countries with much more supportive work-family policies such as paid leave and child care – leaving about 5 million U.S. women out of the labor force and costing the country $775 billion in economic activity annually.
This is particularly notable because while women accounted for more than half of the jobs added last year, some essential industries have continued to struggle since the beginning of the COVID-19 pandemic. For example, caregiving jobs, such as those at nursing and residential care facilities and child care jobs, are still below pre-COVID levels, even though the economy overall now has more than 4.8 million more jobs than it did in February 2020. These caregiving jobs matter to women both because they are more likely to hold these positions, and caregiving jobs help support women entering and remaining in the workforce in a society that still largely pushes caregiving labor on to women.
Also concerning is that deep inequities persisted in 2023. Data for women ages 16 and older show that unemployment rates for American Indian/Alaska Native (AIAN) women, Black women, and multiracial women were all over 5 percent in 2023, compared to 3.1 percent for white women. Disabled women experienced double the unemployment and had lower participation rates than their non-disabled peers. And unemployment rates actually increased for Native Hawaiian and Pacific Islander (NHPI) women and Latinas in 2023, compared to 2022, despite the strong economy. Generally, unemployment rates above 5 percent are considered inefficient; however marginalized groups are allowed to suffer these unemployment rates without the structural support they need to achieve full employment.
While the economic inequities are stark, it’s also important to note that we can only see some of these inequities annually, instead of monthly, because the Bureau of Labor Statistics only releases annual, rather than monthly, employment data for NHPI women, AIAN and multiracial women. Due to a lack of investment, monthly data are not available for these communities, who must go through the whole year without updated economic indicators and who still have far less information than other groups (such as a breakdown by age or marital status). This also ensures that they are left out of larger conversations around how the economy is doing for them 11 months out of the year – and that fiscal policy is not responsive to their needs.
Our analysis makes clear that even when trends are strong on the surface, there can be troubling data underneath and who is measured is just as important as what is measured. What will we be watching for in 2024? Here are just a few things we’ll be keeping an eye on this year:
- What inequities and barriers do women of color face in the job market, even in a strong economy?
- How will caregiving jobs fare this year and what is the cost of failing to act to support this essential part of our economy?
- Will disabled workers continue to see increasing labor force participation? What kinds of support do they need to fully thrive?
- How will continued labor actions increase workers’ economic security and close the wage gap?
- What data are painting a full picture of the economy for all women of color?
- Do women, especially disabled women and women of color, feel like the economy is set up to work for them and their families?
