The Bureau of Labor Statistics monthly Jobs Report for April indicated a slower but still positive job growth, with 175,000 jobs added. This recovery from the pandemic has been faster than that of the Great Recession, and interestingly, the job gains in April were led by women. However, despite these positive trends, there are still lingering questions about how far a tight labor market can take women workers, particularly those who have historically faced obstacles to full economic integration.
One notable impact of the tight labor market post-pandemic has been a rise in labor market churning, with high rates of job openings, hires, and quits. This dynamic labor market has led to a convergence in wages between different segments of the workforce, including women and Black workers. The gender wage gap has decreased by 2 percentage points, while the Black-white wage gap has decreased by 5 percentage points over the past four years. Despite these improvements, disparities in wages and earnings still persist, especially for women of color.
While there have been positive developments in terms of job growth and wage convergence, significant wage gaps still exist, particularly for women and women of color. Occupational segregation continues to play a major role in perpetuating the gender wage gap, with women often being concentrated in low-paying occupations. This type of segregation, along with factors such as caregiving responsibilities, limits women’s ability to access higher-paying jobs and contributes to ongoing economic disparities.
The factors outside of women’s work lives, such as caregiving responsibilities, can also impact the types of occupations they are able to enter. Women often spend more time on unpaid caregiving duties, which can result in fewer work hours and limited opportunities for advancement in higher-paying fields. This leads to higher levels of part-time work among women, as well as a part-time pay penalty that disproportionately affects them. Structural barriers and inequalities continue to hinder progress for women in the workforce.
Despite the positive trend of women gaining jobs in April, there is still a long way to go in addressing gender inequality in the labor market. Men continue to have higher employment rates and earnings, highlighting the ongoing disparities that exist. Until the labor market becomes less segregated and more inclusive, women, especially women of color, will continue to face barriers in achieving true economic equality. The tight labor market alone is not enough to eliminate these systemic challenges and structural inequalities.