The Outlook for Women's Employment and Labor Force Participation

Employment and participation rates for US prime age women rose steadily during the second half of the 20th century. In the last 30 years, however, those rates stagnated, even as employment and participation rates for women in other industrialized countries continued to rise. I discuss the role of changes in the earnings structure and persistent institutional barriers, such as limited investment in family policies, that may be holding back employment among American women today. The COVID-19 pandemic reduced employment more for women than for men and raised the barriers to female participation due to the increase in childcare responsibilities during this period. Yet, the diffusion of remote and hybrid work arrangements in its aftermath may be beneficial for women's participation in the long run, even if both men's and women's post-pandemic employment growth so far are strongly associated with access to remote work options.