Lost Opportunities: The pandemic’s impact on Northeast Ohio’s working women
PREPARED BY PRESENTED BY SPONSORS This report is a supplement to Team NEO’s annual Aligning Opportunities report, which serves as the foundation of the organization’s talent strategy. Team NEO saw an opportunity to research the impact of the COVID-19 pandemic on working women through a diversity, equity and inclusion lens. By socializing the findings in this report, our goal is to initiate conversations on how and why gender inequity is contributing to talent gaps throughout the Northeast Ohio Region.
In this report you will find:
A historical look at women in the labor force • From the mid-1900s through 2020 • The wage gap throughout history Greater labor force COVID’s impact participation of both • Both nationally and regionally women and men • How education plays a factor increases Northeast • Implications on the poverty levels Ohio’s competitiveness as a region.
Representation of women in the - Dr. Jodi Berg President & CEO, Vitamix Corporation Northeast Ohio labor market Team NEO Board Chairwoman • Including industries, occupations and annual earnings • Women-owned businesses
Case studies of programs advancing women in their careers
1 / LOST OPPORTUNITIES Women in the Labor Force
For many women, advancement in the workforce has often been tied to societal norms, economic opportunity, and access to education and child care. Depending on the moment in history, women have either been elevated or restricted from participating in the workforce or advancing their careers. This report looks at COVID-19’s disparate impact on women. It highlights working female’s representation in the Northeast Ohio Region. Driver industries and in-demand occupations as well as opportunities to advance women.
Before the Pandemic
Nationally, labor force participation among women has been rising since 1948, peaking in 2000 (at its height in 2000, women’s participation rate was 60.3%, while men’s was 74.9%). According to the Federal Reserve Bank of St. Louis, women’s national participation increased by nearly 1% from 2016 to 2019.
National Labor Force Participation Rate of Men versus Women
100% 90% In 2019, women 80% represented 70%
60% 45% of all hours
50% worked in the
40% Northeast
30% Ohio Region.
20% in Labor Force % of Population
10% Source: 2019 U.S. Census
0
1948 1960 1972 1984 1996 2008 2020
Male Labor Force Female Labor Force Source: The Federal Reserve of St. Louis
Increased labor force participation among women has led to improved wages, however the gender wage gap has remained steady. Northeast Ohio women spent an average of 36 million hours working in 2019, more than 45% of all hours worked in the region. Despite this, working women earn an estimated 23% less of working men’s wages. COVID-19’s impact on women has shifted the national dialogue to focus on how women’s advancement opportunities may be affected for those who have made the difficult decision to leave the workforce temporarily or permanently. In particular, leaders and activists are pointing out that when trying to reenter the workforce, women may not be able to return at the same level positions and/or wages.
LOST OPPORTUNITIES / 2 Women earned 23% less than men Northeast Ohio Gender Wage Gap
$60,000 $52,583 $50,000 $40,589 $40,000
$30,000
$20,000 Median Annual Median Annual Earnings
$10,000
$ Male Female
Source: 2019 American Community 5-year estimate
Prior to the COVID-19 pandemic, more women took on leadership roles. In fact, vice president roles grew from 23% to 28% - and from 17% to 21% in C-suite positions.1 Women-owned businesses had also been growing at an impressive pace: They represented 42% of all businesses, employing 9.4 million workers and generating $1.9 trillion in revenue.2 However, women continued to be underrepresented in technology and manufacturing, two high-paying growth industries. Half of these women-owned businesses are beauty salons, day care centers, animal care facilities, home health care services, law firms, bookkeeping companies and consultancies, many of which were shut down during stay-at-home orders. Evolving pandemic restrictions, consumer behaviors and child care policies will determine the type and timing of opportunities for women to reenter the workforce and restart their businesses.
National Gender Wage Gap
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000 Median Annual Median Annual Earnings
0
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015
Men Women Source: Women’s Bureau, U.S. Department of Labor
3 / LOST OPPORTUNITIES 1 Women in the Workplace 2020 - LeanIn.Org and McKinsey. 2 McKinsey, from American Express State of Women-Owned Business Report 2019 COVID’s Impact on Labor & Households – Nationally & Regionally
According to Moody’s Analytics, almost a third of workers were afraid of losing their jobs and getting hours and paychecks cut toward the end of 2020.3 The Bureau of Labor Statistics (BLS) reported substantial job loss at different points of the year; however, its September’s report showed hundreds of thousands of women lost their jobs or left the workforce –four times the number of men. Various news sources have reported on the disparity of jobs lost by women of color, than jobs lost by white women. For Example, USA Today reported that over 37% of the 865,000+ women who left the labor force last fall were Latina. In the Northeast Ohio Region, single mothers make up 6% of households. Couples with children, which make up 17% of Northeast Ohio’s households, experienced greater job and income loss than those with children who no longer live at home. These were the groups affected by closures of day cares, schools, playgrounds, camps and other child-centered activities.
Do you know the makeup of your community? Based on your regional demographics, the pandemic’s impact on your workforce may require more attention.
32% 47% Single Married Moody’s Analytics found Women Couples that women were “twice as likely as men to reduce with their work hours among Children 3 couples living together.” with with Children 21% Children Single Men
Breakdown of Household Types in Northeast Ohio
Source: 2019 American Community 5-year estimates
Slowly, the economy is bouncing back from the early impacts of the pandemic, as restaurants, bars, schools and businesses test reopening with public health and safety protocols. Lost jobs, however, are not necessarily coming back. Seeing these high levels of job loss, in particular in so many occupations held by women, has prompted national and regional discussions on what this means for women in the workforce. The question of how COVID-19 will affect women’s short- and long-term opportunities for higher wages and advancement is of particular concern.
3 Pandemic Economics, Moody’s Analytics LOST OPPORTUNITIES / 4 COVID’s Impact on Women – Nationally & Regionally
Education is one of the greatest pathways to higher earnings and wealth generation. For women, however, having access to the same educational opportunities as men does not necessarily lead to equitable earnings. The gender wage gap persists at each level of educational attainment.
The gap in wages Median Earnings by Educational Attainment increase with educational by Gender in Northeast Ohio attainment; or women with a Bachelor’s degree $90,000 $ 21,12 8 earn similar wages to $80,000 men with some college $70,000 $20,008 or associate’s degree $60,000 $50,000 $14,8 0 4 $14,231 $40,000 $11,222 $30,000 $20,000
$10,000 0 Less than High school Some college Bachelor’s Graduate or high school graduate or associate’s degree professional graduate (includes degree degree equivalency)
Source: 2019 American Community Men Women Earnings Difference 5-year estimate
National Historic Poverty by Gender
35,000 Pandemic impact 25,000 on job loss, school 20,000 closures and wage
15,000 loss projected to impact poverty rates Population Population in Thousands 10,000 for women. 5,000 1971 1981 1991 2001 2011 2019
Men Women
Source: U.S. Census Bureau, Current Population Survey, 1960 to 2020 Annual Social and Economic Supplements (CPS ASEC)
Historical poverty data rates are also being watched as women in lower-paying jobs were impacted from the pandemic’s mass closures. Like the wage gap, these rates show a persistent gap between men and women over the decades. While rates among women have decreased since the Great Recession of 2008, economists and national organizations are fearful the pandemic’s job loss, education challenges and wage loss will force more people — specifically working women and mothers — into poverty.
5 / LOST OPPORTUNITIES Women also make up more than half (61%) of the working population below the poverty level in Northeast Ohio. Working Northeast Ohio Working Population mothers and women living below the poverty level can struggle Below the Poverty Level with access to transportation or remote work, quality internet, affordable child care, resources to address the special educational needs of their children and health care.
Men 39% Providing women the opportunity for higher earning potential and Women 61% greater awareness of in-demand jobs is key to addressing the number of working women and mothers in the region who live Source: 2019 American Community 5-year estimate below the poverty line.
Spotlight on Northeast Ohio: The Representation of Women in the Labor Market
Female Representation in Northeast Ohio Industries
80% 60% 55% 50% 47% 46%
Professional, Management Scientific & Arts, Finance & of Companies Technical Entertainment Insurance Government & Enterprises Services & Recreation
Health Care 58% 53% 44% 42% 28% & Social Assistance Wholesale Information Trade Real Estate & Accommodation & Unclassified Rental & 64% Food Services Industry Leasing 27% 26% 16% Agriculture, Forestry, Fishing 57% 53% 43% & Hunting Utilities Administrative Manufacturing & Support & Waste Other Services 27% Management Educational (except Public Transportation 14 % 12 % & Remediation Construction Services Administration) Retail Trade & Warehousing Services Mining, Quarrying & Oil Source: EMSI 2020
In past recessions, a downturn has traditionally halted increases in manufacturing, construction and other male-dominated fields where women have been historically underrepresented. The COVID-19 recession was different. Three of the top five sectors in the region with high rates of female employment – healthcare (-7%), accommodations & food services (-23%), and education (-13%) – accounted for employment losses of more than 70,000 jobs in 2020.
LOST OPPORTUNITIES / 6 Female Representation in Northeast Ohio Occupations
88% 75% 61% 54% 52%
Food Preparation Business & Educational & Serving Financial Sales & Health Care Instruction & Related Operations Related Support Library 51% 38% 37% 73% Building & 78% Grounds; Cleaning & Maintenance Management Legal Health Care Practitioners & Personal Care & 33% 27% Technical Service 49% Farming, Fishing Computer & Arts, Design, & Forestry Mathematics Entertainment, Transportation & 77% 70% Sports & Media Material Moving 26% 20% 16 % 45% Production Military-only Office & Architecture Administrative Community & Life, Physical & Engineering 25% 4% Installation, Support Social Service & Social Science Protective 13 % Maintenance & Repair Service 3% Construction & Extraction
In Northeast Ohio, women make up a majority of the labor force in many of the occupations hardest hit by pandemic-related changes in social distancing, business operations, and consumer behavior. Teachers, insurance agents, restaurant workers and restaurant owners, beauty stylists and salon owners, and child care providers are among those who have faced pandemic-related hardships. It is worth noting that many of these industries generate a significant share of their revenues from a client base that is primarily women or mothers, or institutions hurt by the pandemic.
Northeast Ohio’s Median Annual Earnings by Occupation Among Women
$100,000
$90,000 Management Highest percentage Personal Service Managers, Entertainment & Recreation of women in highest Managers, Except Gambling; Managers, All Other $80,000 Architecture & paying occupations Engineering Computer & Mathematics $70,000 Legal Health Care Practitioners Life, Physical & Business & Financial Operations & Technical Social Science $60,000 Construction & Extraction
Military-only Educational Instruction & Library $50,000 Protective Installation, Arts, Design, Service Community & Social Service Maintenance & Repair Entertainment, $40,000 Sports & Media Production Office & Administrative Support
Median Annual Median Annual Earnings Farming & Fishing $30,000 Transportation & Sales & Material Moving Building & Related Personal Care Health Care Grounds Cleaning & Service Support & Maintenance $20,000 Food Preparation & Serving Related
$10,000
$ 0 0 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
% of Women in Occupation Source: ESMI 2020
7 / LOST OPPORTUNITIES Spotlight on Northeast Ohio: Female Representation in Educational Attainment and Job Opportunities
The impact to higher education, public schools, and other educational institutions has been enormous. For two- and four-year colleges, the pandemic has cost students and institutions over $120 billion in lost wages, refunds, and unanticipated expenses.4 With short-term concerns of social distancing and in-person learning, and long-term concerns of how degrees lead to full-time or in-demand careers, internships and training programs have an opportunity to encourage young adults and adult earners alike to enter into fields with which they are typically underrepresented.
Northeast Ohio Educational In 2019, Northeast Ohio program Attainment Among Women completions among women exceeded 28,000, with 30% of Bachelor’s degree or higher those completions in programs
Graduate or that lead to in-demand jobs in professional degree the health care, manufacturing Bachelor’s degree and IT fields.
Associate degree Architecture Women comprised 62% of these & Engineering Some college, no degree in-demand completions. This high percentage suggests that women High school graduate (includes equivalency) will play the greatest role in overcoming Northeast Ohio’s 9th to 12th grade, no diploma talent supply/demand challenge. Less than 9th grade
0% 5% 10% 15% 20% 25% 30% 35%
Source: 2019 American Community Survey 5-year estimate This high percentage suggests that women
Representation in In-demand could play the greatest role Occupations Among Women in overcoming Northeast
Software Developers & Software Quality Assurance Analysts & Testers Ohio’s talent supply/ Information Security Analysts demand challenge. Personal Service Managers, Entertainment & Recreation Managers, Except Gambling; Managers, All Other General & Operations Managers
Computer Occupations, All Other Web Developers & Digital Interface Designers Women dominate Northeast Database Administrators & Architects Ohio’s health care industry – Management Analysts Financial and Investment Analysts, Financial Risk a critical part of the regional Specialists, and Financial Specialists, All Other economy. Operations Research Analysts
Marketing Managers There is significant opportunity
Financial Managers for women to pursue in-demand Project Management Specialists and Business Operations Specialists, All Other occupations in manufacturing Human Resources Managers and IT. Regional initiatives – like Training and Development Specialists Team NEO’s Emerging Talent Physical Therapists web page – are working to Medical and Health Services Managers recruit and retain more women Occupational Therapists to these fields, strengthening Registered Nurses the regional workforce. Nurse Practitioners
0 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Source: EMSI 2020
4 Forbes, “Pandemic’s Impact on Higher Education Grows Larger; Now Estimated to Exceed $120 Billion” LOST OPPORTUNITIES / 8 Northeast Ohio Completions in In-Demand Program Areas Compared to their male
Health Care, Manufacturing, counterparts, female-owned IT Completions by Gender 2019 businesses surveyed were less likely to predict higher revenues.
38% Men In August 2020, the U.S. Chamber of Commerce 62% published a special report on women-owned small Women businesses during COVID-19 that surveyed women- and men-owned business owner outlooks on various characteristics including revenue, investment and hiring growth, and overall business health. Overall, the report found that women-owned businesses were less likely to predict a strong recovery in the year ahead. Health Care Completions Manufacturing Completions by Gender 2019 by Gender 2019
17% Northeast Ohio Business Women Ownership by Gender 21% 16% Men % Men Women 83% % Women 62%79% Men % Other WomenWomen 23% 61% Other* Men *Did not identify gender and/or identified as both
IT Completions Source: 2017 Annual Business Survey by Gender 2019
28% Women
72% Men
Source: IPEDS 2019
Women make up 80% of in-demand health care program completions
9 / LOST OPPORTUNITIES Northeast Ohio Women-Owned Businesses by Industry
Compared to their male 25,000 counterparts, female-owned businesses surveyed were less likely to predict higher Top women-owned 20,000 revenues. sectors of the economy accounted for a loss of 35,000 regional 15,000 jobs in 2020.
10,000
5,000
Retail Mining Utilities Real Estate Health CareProfessional Information Construction Not Classified Other Services Manufacturing Management Wholesale Trade Total Businesses Arts, Entertainment Agriculture, Forestry Finance Educational& Insurance Services Administration & Support Women’s Businesses
Transportation & Warehousing Accommodation & Food Services Source: 2017 Annual Business Survey, United States Census Bureau
The 2017 Annual Business Survey shows women-owned businesses in Northeast Ohio have been concentrated in health care, professional services, retail, accommodation and food services, other services, and administrative support. These top women-owned sectors of the economy accounted for a loss of 35,000 regional jobs in 2020. With COVID’s effects on these industries, female business owners and entrepreneurs may need increased support as they look to rebuild and strengthen their footprint in Northeast Ohio.
Women in the Post-COVID Workplace
Corporate leaders have an opportunity to refine their HR policies to mitigate the harmful effects of COVID-19, and also retain, promote and advance women in the workforce. Working and single mothers especially are at greater risk of leaving the workforce either permanently or temporarily, which can negatively impact promotions to higher paying roles and future wealth generation for female workers. In Northeast Ohio, women in the workforce can thrive when leaders and company cultures take these impacts into account.
LOST OPPORTUNITIES / 10 Connecting Women with Opportunities
Following are examples of programs being implemented in Northeast Ohio to support women in their careers.
Engage! Cleveland Women and all professionals can thrive when communities rally together. This culture of support is central to Engage! Cleveland’s offerings. Its Next Generation of Women daylong event empowers young professional women to take their careers into their own hands. In addition, Engage! Cleveland conducts a survey on the state of young professionals in the Greater Cleveland community and hosts a Women’s Mentorship Program to help women navigate the intersection of life and work. This is especially important now as women leave jobs that do not offer necessary family leave policies or look for higher-paying or more flexible positions. Despite COVID-19’s many challenges, Engage! Cleveland was prepared to take things virtual. With a solid e-infrastructure, attendance for 2021’s Next Generation of Women grew by over 50 percent and the mentorship program launched with 56 mentees and 16 mentors. This interest shows Greater Cleveland women actively want to take their careers to the next level.
www.engagecleveland.org
Girls Scouts of North East Ohio Being a Girl Scout means more than cookies, crafts and camping. Girl Scouts of North East Ohio (GSNEO) provides opportunities to prepare young women for STEM careers of the future through programming to foster STEM interests in K-12 students, teaching students how STEM helps people and society, connecting students to role models and caring adults, and giving access to physical resources and hands-on exploration. Since 2017, GSNEO has awarded 47,616 badges to female students from kindergarten to high school. New in 2021, GSNEO has launched a partnership with America Makes that will expand STEM programming to include additive manufacturing and 3D printing technology for more than 23,500 girl members. GSNEO is striving to fill a critical gap in emerging talent education to create a more equitable future regional labor force.
www.gsneo.org
S3 Technologies, LLC There is no doubt that culture plays a huge role in how successful a company is with talent attraction and retention. S3 Technologies, LLC is a great example of a small business creating a workplace culture that is conducive to the flexibility and inclusive culture employees yearn for. Even before the COVID-19 pandemic, S3 has fostered an equitable leadership model where employees, in particular women, have been able to start at entry level positions and grow their responsibilities to become part of the leadership team. During the COVID-19 pandemic, S3 prioritized the health and wellbeing of all employees and allowed for the flexibility that is essential to parents; especially women. This has allowed S3 to continue to deliver exceptional technology solutions in a time where these services were in even greater demand.
www.mys3tech.com
11 / LOST OPPORTUNITIES Tri-C’s Women in Transition Program Many women in Northeast Ohio that made the decision to leave the labor force during the pandemic may now be finding themselves at a point of transition in their lives. A resource to aid women re-entering the labor force is Cuyahoga Community College’s (Tri-C) Women in Transition program. Before the pandemic, this 43-year-old program served over 350 women annually and is a source of information, support and retraining for women in transitional times of their lives. This non-credit program features curriculum focused on personal development, career exploration, computer literacy, and other workshops. The program now allows for more flexible learning by offering remote or in-person sessions to accommodate schedules. Program graduates have found employment with regional health care providers, businesses, hospitality management and educational institutions, including Tri-C itself. Tri-C’s Women in Transition program has proven to be an equitable solution to empowering women re-entering the labor market. www.tri-c.edu/women-in-transition
YWCA of Greater Cleveland YWCA of Greater Cleveland (YWCA) is dedicated to eliminating racism, empowering women, and promoting justice, freedom and dignity. Ringing true to their mission, YWCA has made organizational changes over the past five years to end biases and meet gaps for their staff, including raising their minimum wage to $15 an hour. During a year of heightened racial reckoning, YWCA became a shining example for corporations looking to build policies around equity and inclusion in the workplace. For example, YWCA eliminated restrictions for PTO during the pandemic and focused on communications that put staff self-care at the forefront, helping staff thrive through difficult times. When asked about the best policy to help empower women, YWCA advocates for true universal childcare that un-burdens women from high care costs and allows them to pursue employment that generates wealth. www.ywcaofcleveland.org
LOST OPPORTUNITIES / 12 About Aligning Opportunities
This report is a supplement to Team NEO’s annual Aligning Opportunities report, which serves as the foundation of the organization’s talent strategy. First released in 2017 through the generous support of the Cleveland Foundation, Aligning Opportunities identifies the supply and demand misalignment within Northeast Ohio’s talent pipeline, specifically within the in-demand, high-growth sectors of health care, IT and manufacturing. Since 2019, Team NEO has partnered with Delta Dental to increase awareness of Aligning Opportunities among the business and higher-education communities. We engage key decision-makers in meaningful discussions towards resolving the talent supply and equity gap, while also providing students with greater awareness of, and access to, in-demand careers.
SUPPORTED BY Delta Dental