The monthly Jobs Report for April from the Bureau of Labor Statistics showed continued job growth, with 175,000 jobs added, marking a healthy recovery from the pandemic. This recovery has been quicker than that of the Great Recession, and women have been leading the way. In April, women gained all the jobs added, while men lost jobs. However, despite these positive trends, women still face barriers to achieving full economic integration, and the question remains as to how far a tight labor market can take them.
One notable consequence of the tight labor market has been an increase in labor market churning, with people changing jobs at historically high rates. The Job Openings and Labor Turnover Survey has shown high job openings, hires, and quits in recent years. Wages across different groups have also started to converge, with women and Black workers benefitting disproportionately. The gender wage gap has decreased by 2 percentage points, while the Black-white wage gap has decreased by 5 percentage points over the last 4 years.
Despite the positive trends in the Jobs Report and other economic data, significant disparities still exist. The gender wage gap persists, as do racial wage gaps, with women of color facing particularly stark challenges. For example, Hispanic women earn only 61.4% of what white men earn, while Black women earn 67.4%. Asian American women fare better but still face gaps. Occupational segregation plays a key role in maintaining these disparities, as women are often steered towards lower-paid occupations.
While the tight labor market has brought about changes, it may not be enough to address the long-standing structural inequalities facing women, especially women of color. Factors outside of work, such as caregiving responsibilities, can limit women’s ability to pursue higher-paying occupations with greater demands. Women are more likely to work part-time, which comes with a pay penalty. Additionally, women’s caregiving responsibilities can restrict their mobility and opportunities for career advancement.
Even with the positive job growth numbers for women in April, the labor market alone cannot eliminate the gender inequalities that persist. Men still have higher employment rates and earnings, highlighting the ongoing segregation within the labor market. Until these barriers are addressed, women, particularly women of color, may continue to face obstacles in achieving economic parity. As women lead the economic recovery, it is crucial to prioritize policies and initiatives that aim to break down these barriers and create a more equitable labor market for all.
