Workplace ® Visions No. 3 | 2006 Exploring the Future of Work Women and work n Labor force participation and wage rates are changing for both men and women. n Women are surpassing men in educational attainment. n The labor force participation rate of women may influence future skills shortages. n Organizations could increasingly focus retention efforts on highly skilled women. In most industrialized countries, out of the workforce (see Table 1). the 20th century also occurred across women have been a major part of the Though these kinds of structural many industrialized countries and paid workforce for many decades, and changes in the economy may have had in developing countries, particularly women’s economic contributions in a greater effect on men, economists in the emerging economies of East both paid and unpaid work have been generally agree that declines in both Asia. Many of these jobs were in the significant for much longer. Many econ- male and female employment are also rapidly expanding service sector. The omists credit the increase in the num- partially the result of a greater number growth of the service sector may be ber of women in the workplace as one of individuals reaching retirement age one reason that female employment of the most important forces shaping and an increase in delayed employ- rates continued to show upward growth the economy over the past 30 years, ment in order to get more education. throughout the 1990s even as male influencing economic factors such as employment rates declined steadily. average family income, productivity and Female labor force participation Unlike the decline in men’s labor consumer behavior. Recently, reports The percentage of women in the force participation, which has been of women’s declining labor force par- U.S. workforce reached its peak in discussed mainly within an economic ticipation in the United States, along 2000 and has since begun to decline context, the downward trend in with evidence that many of those drop- slightly. In 1950, only one-third of women’s participation in the work- ping out of the labor force were highly working-age women in the United force has been subject to much more educated and skilled women, have led States were in paid work, whereas now examination from a social and cultural HR leaders in some industries to reex- women make up almost half of the perspective. One of the key ques- amine diversity and retention policies U.S. workforce and around two-thirds tions has been to what extent child aimed at women. of working-age women today have rearing and other caring responsibili- paid jobs. The upward trend of female ties are influencing women’s employ- Changing labor force employment rates in the second half of ment levels. Based on U.S. Current participation and wage rates Table 1 | Persons Not in the Labor Force by Desire Many of the same factors that led to a and Availability for Work (2005) decline in male employment over the TOTAL MEN WOMEN last half of the 20th century could now (IN THOUSANDS) (IN THOUSANDS) (IN THOUSANDS) also be contributing to the decline in Total not in labor force 76, 762 29,119 47,643 female employment. However, econo- Do not want a job now 71,777 26,926 44,851 mists attribute much of the decline in male employment to structural Want a job* 4,985 2,193 2,792 changes in the economy that seem Did not search for work in previous year 2,841 1,173 1,668 to affect men more than women. For Not available to work now 599 231 368 example, many believe that a large Available to work now 1,545 789 756 number of male workers who have dropped out of the labor market are Reason not currently looking former blue-collar workers who have Discouragement over job prospects** 436 260 176 been displaced by the decline in the Family responsibilities 159 36 123 manufacturing sector. In the United States, male employment declined by In school or training 217 118 99 12% since 1950, and similar drops Ill health or disability 119 64 55 in male employment also occurred in Other*** 614 311 302 other industrialized countries as job *Includes some persons who are not asked if they want a job. growth shifted away from manufactur- **Includes those who believe no work is available, could not find work, lack necessary schooling or training, employer ing. This may be one reason men are things too young or old, and other types of discrimination. much more likely than women to cite ***Includes those who did not actively look for work in the prior four weeks for such reasons as childcare and transporta- tion problems, as well as a small number for which reason for nonparticipation was not ascertained. Workplace Visions Workplace “discouragement over job prospects” Source: Bureau of Labor Statistics | 2 as the main reason they have dropped Population Survey data, it does appear compared with other industrialized bringing more women into the labor that the age of the youngest child influ- nations. One theory is that the United market, many OECD countries may ences the number of hours worked by States has less room for growth in attempt to shift a greater percentage mothers but has no effect on working female employment because it already of women from part-time to full-time hours of fathers. However, data from has one of the highest women’s employment. the Bureau of Labor Statistics (BLS) employment rates across the OECD Female labor force participation do not indicate that women are opting countries. Another theory is that the will not only be a critical factor in the out of the labor market specifically to United States averages some of the economies of industrialized countries, care for children in greater numbers highest annual working hours, which but it may be even more important in than in the 1990s. could create a lower dropout ceiling for developing countries with high rates of Though women are still much more women’s employment because women poverty because of its positive impact likely than men to cite family respon- average fewer weekly paid working on productivity and GDP. For example, sibilities as their reason for dropping hours than men, especially when economists believe that the increase out of the labor force (see Table 1), part-time work is not available. OECD in female employment accounts for when looking at fertility rates and countries with the highest incidence of a major portion of global economic female employment internationally, women in part-time work tend to have growth, particularly in the emerging researchers have found that—at least higher rates of women in the workforce economies of Asia. For every 100 within the wealthiest and most indus- when controlling for other factors, and men in the workforce in the emerging trialized countries monitored by the the United States is among the OECD East Asian economies, there are now Organisation for Economic Co-opera- countries with the lowest rates of 83 women—a higher average than tion and Development (OECD)—there women in part-time work. This issue even that of the wealthiest countries is no negative correlation between may be of particular importance to represented in the OECD average. fertility and labor force participa- highly educated women as the lack of This may be particularly true in export tion. This means that women do not availability of part-time jobs may have manufacturing sectors in countries have fewer children in industrialized the greatest influence on exempt work- like China where women are esti- countries with higher female employ- ers averaging 40-plus hours of work mated to account for up to 80% of ment rates. In fact, several studies per week. According to the OECD data, jobs. Because the employment rate have shown the opposite to be true: a number of other factors probably of women is positively correlated with women tend to have more children in account for the overall differences in lower poverty rates, it is not surpris- the OECD countries such as Sweden female labor force participation rates ing that Asia has led the developing and the United States, where female across industrialized countries. These world in reducing poverty over the employment rates are highest. In include policy issues related to flex- last decade. In addition to develop- determining potential future trends ibility of working time arrangements, ing countries with low rates of female relating to women in the workforce, taxation of second earners relative education and formal employment, more attention may therefore be paid to single earners, childcare subsidies there are also a small number of coun- to factors such as work availability and paid parental leave, in addition to tries where female education rates and family income, aging, disability broader social and economic factors are comparatively high while female and educational attainment than to such as female education levels, the paid employment remains low. Shifts fertility rates. proportion of married women in the to higher levels of women in the work- Globally, employment among work- population, average number of children force in both types of developing econ- ing-age women rose in almost all and overall labor market conditions. omies could have widespread social OECD countries between 1981 and For many industrialized countries, and economic implications, creating 2001. The United States, along with future employment policies may new consumer markets and reducing Workplace VisionsWorkplace Japan, was one of only two OECD be aimed at further increasing the poverty levels. countries that showed a decrease in number of women in the workforce employment rates for women between primarily to improve productivity rates Wages 2000 and 2004.