USA, 2000s-2020s

Women in the workforce (2000s-2020s, USA)

In the history of women's employment in the US, the years 2000–2020 mark a turning point. This era began with high hopes for further advancement and integration of women into all areas of the economy, building on the momentum of the late 20th century, when women's labor force participation jumped from 38.3% in 1963 to nearly 60% by 2000. In addition to increasing economic opportunities for women from all backgrounds, the shift in women's roles in the workforce over the past few decades has also significantly raised family incomes and boosted the national economy.

However, there was a notable divergence from these patterns in the early 21st century. Women's labor force participation peaked at the beginning of the new millennium and then started to stagnate before declining. The female participation rate dropped significantly from its peak in 2000 to 56.7% by 2015, and this decline persisted into the subsequent years. The decline was particularly noticeable among prime-age women (those aged 25 to 54); their participation rate fell from 76.7% in 2000 to 73.7% in 2015, a reversal that distinguished the United States from other developed economies where women's participation rates continued to increase.

This complicated landscape was the result of several factors. Workforce dynamics were shaped by a changing economy, an aging population, and a rise in the number of young women enrolled in higher education. However, even prime-age women, who have historically been the most active group, saw a decline in participation, so these demographic explanations are insufficient to explain the ongoing decline. Inflexibility in the workplace, antiquated corporate cultures, and a lack of assistance in juggling work and family obligations have all been identified by academics and analysts as major obstacles that have hindered women's ability to progress and remain actively involved in the workforce.

Major economic disruptions like the Great Recession and the start of the COVID-19 pandemic also had an impact during this time, disproportionately affecting industries with high female employment and making it harder for women to participate in the labor force. This made the early 21st century a period of introspection and reevaluation, leading to a resurgence of discussions regarding workplace policy, gender equity, and the wider effects of women's employment trends on economic growth and societal well-being.

Registered nurses at St. Vincent Hospital in Worcester, Massachusetts, protesting conditions and protections for nurses during the COVID-19 pandemic on March 8th, 2021. (Matthew J. Lee/The Boston Globe via Getty Images)

Labor Force Participation: Plateau and Decline

One of the key characteristics of the American labor market in the second half of the 20th century was the sharp increase in women's labor force participation. Women's participation increased gradually from just 37% in 1962 to almost 60% in 2000. The long-term drop in male participation was counterbalanced by this revolutionary spike, which also fueled the growth of family incomes and the overall expansion of the economy. Women of all ages, races, marital statuses, and educational levels were joining the workforce at significantly higher rates than in prior generations by the year 2000, radically altering both the American economy and society.

This upward momentum stalled after 2000 and then turned around. Women aged 16 and older had a 59.9% labor force participation rate in 2000, but by 2010 and 2015 it had dropped to 58.6% and 56.7%, respectively. Decades of progress were essentially erased by 2020 when the rate fell to 56.2%, a level not seen since the late 1980s and early 1990s. This decline reflected changes among younger and prime-age women, as well as among older women and those who were retiring. The COVID-19 pandemic in 2020 caused a sharp decline in participation rates for both men and women, further exacerbating the trend, which had been accelerated by the Great Recession (2007–2009).

Among "prime-age" women (those between the ages of 25 and 54), who had previously contributed significantly to the increase in female labor force participation, the decline was especially noticeable. Between 2000 and 2015, their participation rate decreased from 76.7% to 73.7%. This reversal distinguished the United States from peer countries: the U.S. saw stagnation and decline in prime-age women's participation, whereas countries such as France and Japan saw continuous increases. The decline in prime-age women is particularly noteworthy because it reveals deeper structural and cultural issues in the American labor market and cannot be fully explained by demographic changes like aging or rising college enrollment among younger women.

Airline industry workers urging the US Congress to pass a COVID-19 relief package via protest in Federal Plaza, Chicago, Illinois on September 9th, 2020.(Photo by KAMIL KRZACZYNSKI / AFP)

The plateau and decline in women's workforce participation were caused by a number of factors. Although the percentage of older Americans rose due to the baby boomer generation's aging, the drop in prime-age women suggests problems that go beyond demographics. The decline in participation among women in their prime working years cannot be entirely explained by the trend of more young women delaying entering the workforce and enrolling in college. Another important factor is workplace culture; antiquated business practices, rigid work schedules, and a lack of assistance in juggling work and family obligations have made American workplaces less desirable to women, leading some to leave or become less involved. Additionally, economic shocks such as the Great Recession and the COVID-19 pandemic disproportionately impacted sectors with high female employment, further accelerating the decline in women's workforce participation.

Labor Force Participation: Plateau and Decline

Wage Gap and Advancement

The United States has maintained a sizable gender wage gap in spite of legislative advancements and raised awareness. Women made about 73 cents for every dollar earned by men at the start of the new millennium. Over the following 20 years, this number only slightly improved, rising to 83 cents in 2020 and 84 cents in 2022. In 2022, men were still paid sixteen percent more than women, despite the Equal Pay Act of 1963 having been in effect for more than sixty years. A complex web of factors, such as gender discrimination, motherhood penalties, occupational segregation, and deeply ingrained gender roles in the workplace, contributes to the wage gap. These differences limit women's economic independence, lower their lifetime earnings, and exacerbate social inequality.

In addition to compensation, women are still underrepresented in high-paying and senior leadership roles. Even though women now earn most bachelor's and master's degrees, they still lag behind men in terms of promotions and advancement to executive positions. Only 7.4% of Fortune 500 companies had female CEOs as of 2021, and women of color were disproportionately underrepresented, holding the top spot at 0.6% of these companies. Women's advancement into higher leadership positions is hampered by the "broken rung" phenomenon, which states that women are less likely than men to be promoted to their first management position.

A graph depicting Fortune 500 CEOs separated by gender from 2000-2020. Created by Lance Lambert with data from Fortune on June 2nd, 2021.

Entrepreneurship and Leadership

Georgina Gooley, the co-founder of Billie, a female-first shaving company that adresses the "pink-tax" often seen with women's razors. (Hannah Lewis-Lopes, 2018)

Women have made significant strides in entrepreneurship, launching companies at a rising rate. They still encounter many challenges, though, such as restricted financial resources, smaller professional networks, and enduring gender stereotypes that can impede their credibility and opportunities for advancement. For women of color, who face additional obstacles relating to both gender and race, these difficulties are even more severe.

The issue of leadership representation is still ongoing. Women's representation in top management and board positions has only gradually increased, despite their educational advancements and nearly equal workforce participation. Women's progression into leadership positions is further hampered by systemic biases, a lack of mentorships, and exclusion from informal networks.

Workplace Engagement

Concerns about women's engagement at work have persisted. Less than half of women say they are completely engaged in their work, and many say they would like to switch roles because they are unhappy with the work-life balance, advancement opportunities, and workplace culture. These problems were made worse by the COVID-19 pandemic; in September 2020 alone, 800,000 women—four times as many as men—left the workforce. By December 2020, all the net job losses in the United States that month were women. Black women and Latinas were particularly affected by these trends, as their unemployment rates were much higher than the national average for women.

Racial and Ethnic Disparities in U.S. Women’s Labor Force Participation (2000–2020)

Overview of Trends and Pandemic Impact

Women's labor force participation in the United States fell from a peak of roughly 61% in 2000 to 57% by 2016, and then to 56.2% in 2020 as a result of the COVID-19 pandemic. Significant racial and ethnic disparities were concealed by these declines, with Asian, Latina, and Black women facing particular obstacles that frequently worsened those faced by white women. Due in part to occupational segregation and childcare disruptions, the pandemic exacerbated already-existing disparities, with Black and Latina women experiencing more abrupt departures from the labor force than white or Asian women. Participation among mothers fell sharply, particularly among mothers of school-age children. Lower-income mothers and women of color were less able to access remote work or reliable childcare, leading to higher rates of workforce exit. In 2020, Hispanic (11.4%) and Black (10.9%) women had the highest unemployment rates among women, compared to Asian (9.6%) and white women (7.6%).

A graphic created by the Equal Payback Project, a National Women's Law Center campaign, to highlight wage disparities between white men, white women, African-American women and Hispanic women.

Black Women

An art piece created by Jaimie Shelton for the 19th News depicting the pandemic's effects on Black women in the work force. (2023)

Historically, the unemployment rate for black women has been nearly twice that of white women (e.g., 10.5% vs. 5.2% in 2014). Their labor force participation fell by 2 percentage points during the pandemic and stayed below pre-pandemic levels. Black women were disproportionately impacted by pandemic job losses because they were overrepresented in low-wage service industries. While other groups recovered, their participation had dropped by 45,000 by August 2022. Many Black women, especially those with young children, were forced out of the workforce due to caregiving demands and school closures. Black women's long-term labor force participation and recovery are hampered by a number of interconnected obstacles, including structural discrimination, occupational segregation, and an excessive childcare burden.

Latina/Mexican Women

Compared to 15% for the general population, Mexican women's unemployment skyrocketed to 20.1% in April 2020. 27% of Latinas remained in poverty despite working full-time, despite employment rates rebounding to 58.5% by 2022. This is indicative of ongoing wage disparities and a concentration in low-paying jobs. For every dollar earned by white men, Latinas only received 57 cents. Language hurdles, immigration status, and traditional caregiving responsibilities further hampered labor market advancement in addition to wage disparities. Even during times of recovery, many Latina women have remained economically vulnerable due to structural and cultural barriers, even in the face of high labor participation rates.

Asian Women

Only 1 in 50 Asian women advanced to C-suite positions, compared to 1 in 15 at entry level, and they were 50% less likely than white women to receive leadership feedback despite having excellent performance reviews. Particularly for Southeast Asian women, who also had to deal with discriminatory promotion standards, microaggressions and misidentification were prevalent. Workplace stress was exacerbated by anti-Asian sentiment during the pandemic. Because Southeast Asian women experienced higher levels of precarity and lower earnings than East Asian women, aggregate statistics frequently mask significant subgroup disparities. These differences demonstrate how racial and cultural stereotypes have impacted Asian women's economic security and career advancement.

White Women

While college-educated white mothers enjoyed the advantages of remote work and paid leave, which allowed for a quicker recovery after 2015, white mothers without college degrees faced stagnant wages and unstable service jobs. White women also experienced a wage gap, although their average earnings were still higher than those of women of color. Black and Latina women received 79 and 57 cents, respectively, for every dollar earned by white men. White women's labor market outcomes during and after the pandemic were greatly impacted by class differences, with education and job flexibility emerging as critical components of recovery and resilience.

Shared Structural Obstacles Across Groups

Because Black women held 20% of low-wage service jobs, Latinas held 30%, and white women held 15%, workplace segregation increased susceptibility to economic shocks. This strain was increased by the childcare crisis; Black and Latina families were twice as likely as white families to report significant disruptions in childcare, and one in four mothers had to cut back on their work hours due to the loss of over 88,000 childcare jobs by 2022. Significant lifetime losses—more than $1 million for Latinas and almost $1 million for Black women—were caused by persistent pay gaps across all groups, highlighting ingrained systemic injustices in the labor market.

An art piece created by Julia Galotta for the 19th News illustrating the issue of discrimination against mothers within the workforce. (2023)

Page updated

Google Sites

Report abuse