In the pandemic era, the "she-cession" was a significant labor trend. Initially, women were disproportionately affected by lockdowns due to their higher representation in sectors such as leisure, hospitality, and education. Additionally, women took on more responsibility for homeschooling and childcare during the pandemic. However, as the economy recovers, women have been driving the workforce. Female employment growth post-pandemic has surpassed that of men, and the labor force participation rate among 25 to 54-year-old women in the US has reached a record high.
This trend of women returning to the labor market aligns with the previous years' increase in prime-age female labor force participation. Economists credit this growth to the tighter labor market following the Great Recession of 2007-2009, which raised wages and attracted more women to work. Inflation is also playing a role in women's return to work.
Contrary to predictions, the pandemic did not lead to significant early retirement among boomers. Instead, many people in their fifties and sixties who had left jobs are now reentering the workforce, primarily led by women. The reasons for this include inflation and a lack of adequate retirement savings. Only a small percentage of working-age Americans have a company-sponsored 401k pension, and the median retirement savings for the bottom half of the socio-economic spectrum is zero. Women are particularly vulnerable in terms of retirement savings, as they are 80% more likely to be impoverished in old age than men.
While women face challenges, there are also new advantages. Post-pandemic work arrangements that offer more flexibility are beneficial for many women, especially working mothers. The Biden administration has made it a priority to increase the participation of women and people of color in the labor market, connecting infrastructure spending and corporate subsidies to diversity initiatives. As a result, there have been significant shifts of women into traditionally male-dominated sectors such as construction and transport.
Although women are moving into traditionally male work, the reverse trend is less likely. Research shows that while women are willing to take manufacturing jobs for higher wages, men, particularly white men, are less likely to move into female-dominated sectors such as nursing. However, with the growing prominence of artificial intelligence (AI) in fields like manufacturing and logistics, it remains to be seen how gender-based trends will unfold. A study from the University of North Carolina found that women are more vulnerable to AI-based job disruption due to their higher representation in white-collar office jobs. In the future, as AI advances, those with higher emotional intelligence, flexibility, and the ability to quickly retrain themselves may be in high demand, regardless of gender.
Overall, these labor trends underscore the evolving dynamics of the workforce in the pandemic era and highlight the importance of addressing gender disparities and preparing for the impact of AI on job markets.