Women leaving the workforce during the pandemic due to challenging market conditions and caregiving responsibilities has been a significant issue. However, recent data from the US Bureau of Labor and Statistics indicates a positive trend with women rejoining the labor force. The participation rate of working-age women in the US increased from around 70% in 2020 to 73% by the end of 2023, surpassing pre-pandemic levels.
This resurgence of women in the workforce not only benefits the economy but also has implications for future professional growth. More women in corporate leadership positions can lead to increased opportunities for other women, the development of supportive workplace policies, and investments in shaping the potential of future generations.
An increase in remote and hybrid roles are largely responsible for this workforce growth, a report from Moody's Analytics published in February found. Additionally, a survey from Pew Research Center published in March 2023 found that 41% of people with jobs that can be done remotely work on a hybrid schedule.
Women, especially millennials with families, are facing financial pressures from the high cost of childcare and housing. Remote jobs also offer more flexibility.
The amount of women in entry-level, manager, vice president, and C-suite roles all increased between 2015 and 2023, per Moody's, with the number of women in C-suite roles growing by 11%.
More women are also turning to freelance and gig work to maximize their income and lifestyle.
The are still fewer women in the labor force than men — 67.9% of men over 25 were employed in 2022, compared to just 55.4% of women — but increased hybrid options are closing the divide. Moody's research identified inflation and high childcare costs as factors that could risk women's recent labor force success.
Still, Moody's research shows that the narrowing of labor force gender gaps since 2019 has added $1.5 trillion to global income. Australia, India, Japan, and the European Union have been leading this growth.
"A silver lining of the havoc wreaked by the COVID-19 pandemic may be a permanent shift in attitudes towards working that paves the way for more women to actively engage with the labor market," the report said.