A recent report from Ned Davis Research (NDR) highlights the significant influence of millennial women on the economy. The study, titled "The rising influence of Millennial Women," examines their impact on job participation, employment, the stock market, and GDP. Specifically, it emphasizes the remarkable contribution of women in their late 20s and early 30s to addressing several economic challenges.
Job Participation and Employment
The report indicates that prime-age female job participation rates reached record highs in several developed economies in 2023. Notably, countries such as the U.S., Australia, Japan, Italy, South Korea, and Germany have experienced a notable increase in women's influence on the economy. For instance, in Australia, women's participation surged by over 3.25%, compared to men's 0.25% increase. Similarly, in the U.S., women's job participation increased by 0.5%, further highlighting the growing impact of women in the labor market.
Educational Attainment and Productivity
The study also underscores that women in the 25-34 age group are more likely to have obtained education beyond high school compared to men in 19 major economies. This trend aligns with the rise in college-educated women in the workforce, highlighting their increasing presence and influence. Furthermore, the report suggests that women's higher levels of education contribute to lower unemployment rates and a greater likelihood of securing full-time employment, thus enhancing productivity.
Remote Work and Spending Power
The report emphasizes the impact of hybrid and remote work on women, especially those with children. It notes that this shift has had a more significant influence on women, leading to changes in spending power. Despite lower incomes, American women aged 25-44 outspend their male counterparts by $1,000 to $2,000 annually. Additionally, single women in the 35-44 age group exhibit a higher homeownership rate, influencing their spending patterns on home-related purchases.
Future Economic Implications
Furthermore, the report highlights that the increasing participation of women in the workforce could counterbalance the challenges associated with aging populations. The calculations in the report suggest that a higher female labor force participation rate could boost the GDP of the U.S., India, and Egypt by significant percentages, ultimately impacting international markets and investment in equities.
In conclusion, the report from NDR underscores the profound and multifaceted influence of millennial women on the economy. From labor force participation to educational attainment and spending power, their impact extends to broader economic implications, showcasing their pivotal role in shaping the economic landscape.