Women without a College Degree, Especially Minority Mothers, Face a Steeper Road to Recovery

The labor force participation of prime-age individuals (age 25 to 54) in the United States declined dramatically at the onset of the COVID-19 pandemic, and as of June 2021, the prime-age labor force participation rate remains well below its pre-pandemic level. Prime-age individuals are in their most...

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Published inEconomic review (Kansas City) Vol. 106; no. 3; pp. 5 - 2
Main Author Tuzemen, Didem
Format Journal Article
LanguageEnglish
Published Kansas City Federal Reserve Bank of Kansas City 22.06.2021
Subjects
Age
Analysis
Baccalaureate degrees
Black people
Black women
Censuses
Child care
Coronaviruses
COVID-19
Day care centers
Economic aspects
Economic growth
Education
Educational attainment
Employment
Epidemics
Ethnicity
Hispanic American women
Hispanic Americans
Labor force
Labor force participation
Labor market
Labor supply
Minority & ethnic groups
Pandemics
Participation
Race
Recessions
Retailing industry
Social distancing
Statistics
Women
Work
United States > US
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Abstract The labor force participation of prime-age individuals (age 25 to 54) in the United States declined dramatically at the onset of the COVID-19 pandemic, and as of June 2021, the prime-age labor force participation rate remains well below its pre-pandemic level. Prime-age individuals are in their most productive working years, and a persistent decline in their labor force participation has important implications for the future of the labor market and economic growth. However, understanding the decline requires detailed analysis, as aggregate statistics on labor force participation may mask differences in labor market outcomes.
AbstractList The labor force participation of prime-age individuals (age 25 to 54) in the United States declined dramatically at the onset of the COVID-19 pandemic, and as of June 2021, the prime-age labor force participation rate remains well below its pre-pandemic level. Prime-age individuals are in their most productive working years, and a persistent decline in their labor force participation has important implications for the future of the labor market and economic growth. However, understanding the decline requires detailed analysis, as aggregate statistics on labor force participation may mask differences in labor market outcomes. Didem Tuzemen documents changes in the labor force participation rates of prime-age individuals across sex, education level, and race and ethnicity during the pandemic-induced downturn and subsequent recovery. Her analysis yields three key findings. First, prime-age women without a bachelor's degree experienced greater deteriorations in their labor force participation and employment during the recession than all other prime-age individuals, and their labor force participation and employment rates are still well below their pre-pandemic levels. Second, Hispanic prime-age women without a bachelor's degree have seen a larger decline and a slower recovery in their employment and labor force participation rates compared with non-Hispanic white and non-Hispanic Black women. Third, the presence of young children seems to have weighed on the labor market outcomes of less-educated women in general and minority women in particular.
The labor force participation of prime-age individuals (age 25 to 54) in the United States declined dramatically at the onset of the pandemic as temporary shutdown orders and social distancing measures to fight the COVID-19 outbreak caused substantial job losses and limited job search activities. In February 2020, 83.1 percent of prime-age individuals participated in the labor force, meaning they were either working or actively looking for work. By April 2020, this rate had fallen to 79.8 percent, a decline of roughly 4 million people. Although some prime-age individuals have returned to the labor force since then, as of June 2021, the prime-age labor force participation rate remains well below its pre-pandemic level. Prime-age individuals are in their most productive working years, and a persistent decline in their labor force participation has important implications for the future of the labor market and economic growth. However, understanding the decline requires detailed analysis; aggregate statistics on labor force participation may mask differences in labor market outcomes by sex, educational attainment, and race and ethnicity. Identifying these differences is crucial to both evaluating potential labor market implications and designing targeted policies to encourage labor force participation.In this article, I use data from the U.S. Census Bureau's Current Population Survey (CPS) to document changes in the labor force participation rates of prime-age individuals across sex, education level, and race and ethnicity during the pandemic-induced downturn and subsequent recovery. My analysis yields three key findings. First, prime-age women without a bachelor's degree experienced greater deteriorations in their labor force participation and employment during the recession than all other prime-age individuals. Their labor force participation and employment rates are still well below pre-pandemic levels, likely due to the incomplete but continuing recovery of jobs in contact-sensitive sectors. Second, Hispanic prime-age women without a bachelor's degree have seen a larger decline and a slower recovery in their employment and labor force participation rates compared with non-Hispanic white and non-Hispanic Black women. Third, the presence of young children seems to have weighed on the labor market outcomes of less-educated women in general and minority women in particular, suggesting these women may have faced challenges juggling work and childcare during pandemic-related school and day care closures.
The labor force participation of prime-age individuals (age 25 to 54) in the United States declined dramatically at the onset of the COVID-19 pandemic, and as of June 2021, the prime-age labor force participation rate remains well below its pre-pandemic level. Prime-age individuals are in their most productive working years, and a persistent decline in their labor force participation has important implications for the future of the labor market and economic growth. However, understanding the decline requires detailed analysis, as aggregate statistics on labor force participation may mask differences in labor market outcomes.
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Copyright Federal Reserve Bank of Kansas City Third Quarter 2021
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Snippet The labor force participation of prime-age individuals (age 25 to 54) in the United States declined dramatically at the onset of the COVID-19 pandemic, and as...
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SubjectTerms Age
Analysis
Baccalaureate degrees
Black people
Black women
Censuses
Child care
Coronaviruses
COVID-19
Day care centers
Economic aspects
Economic growth
Education
Educational attainment
Employment
Epidemics
Ethnicity
Hispanic American women
Hispanic Americans
Labor force
Labor force participation
Labor market
Labor supply
Minority & ethnic groups
Pandemics
Participation
Race
Recessions
Retailing industry
Social distancing
Statistics
Women
Work
Title Women without a College Degree, Especially Minority Mothers, Face a Steeper Road to Recovery
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