The latest jobs report revealed that U.S. employers added 206,000 jobs in June. The good news is that although interest rates are still high, the American economy is still jugging along nicely. The bad news, if we can call it that, is that the June job growth was down from the prior month (218,000). The economy is still growing, but slower.

As reported by the Associated Press (and published in Inc.) “Economists been repeatedly predicting that the job market would lose momentum in the face of high interest rates engineered by the Fed, only to see the hiring gains show unexpected strength. Still, there are signs of an economic slowdown in the face of the Federal Reserve's series of interest rate hikes. The U.S. gross domestic product--the total output of goods and services--grew at a lethargic annual pace of 1.4 percent from January through March, the slowest quarterly pace in nearly two years.”

The unemployment rate saw a slight increase (4.0% to 4.1%) but remained near historic lows.

As we can see from the above, things seem to be okay. Not great, but not bad. So, what’s the problem?

We Have More Jobs Than Workers.

And it is going to get worse. When John Adams was Philadelphia, participating in the writing of the U.S. Declaration of Independence, his wife Abigail wrote to him, saying ““I desire you would Remember the Ladies, and be more generous and favourable to them than your ancestors … Remember all Men would be tyrants if they could.”

Although not quite the same content, today’s C-Suite executives would be wise to remember her admonition. Women’s participation in the workforce (ages 25 – 54) is at a record high of 77.9%.

Hemorrhaging Female Talent

Even though the number of women in the workforce is historically high, there is still a problem. Although return-to-office mandates have slowed, those employers who are still insisting on in-office attendance are having trouble.

According to an Upwork survey, “…nearly two-thirds (63%) of C-suite leaders whose companies have mandated an office return of some sort say the policy has led a disproportionate number of women to quit.

About the same share of executives told Upwork they're struggling to fill those vacant roles—and more than half agree that their hemorrhaging of women employees tanked company productivity. (They surveyed 2,500 global workers, including over 1,500 C-level executives.)”

The U.S. Is Falling Behind

Per the Center for American Progress, over the past 30 years, every G7 nation saw at least 10% growth in working women. The same metric remained mostly flat in the U.S., which CAP estimated will cost the U.S. 5% of potential GDP growth.

According to the U.S. Chamber of Commerce, “Today, women represent 47% of all U.S. employees, and women are integral to our modern workforce. However, despite the strong presence of working women, inequities remain—and in some cases are expanding. These are worrying trends as the U.S. economy continues to face increased demand while also navigating a labor shortage.”

What’s Causing Women Not to Work?

• Home and Family: There are several factors, some traditional and some new. Caring for the home and family is still the number one reason mothers don’t work. Even if they were inclined to work, the prohibitive cost of childcare is the leading obstacle preventing them from engaging in the workforce.
• ·     Wage Gap: Women in the U.S. earn 16% (per dollar) less than their male counterparts.
• ·     Views On Work-Life Balance: As reported in the same Chamber Of Commerce report, “While lower wages and insufficient childcare pose challenges to bringing women back into the workforce, these are not the only obstacles. In a 2021 survey, 45% of workers reported leaving the workforce because they lacked flexibility in the workplace. A USA Today survey found that U.S. workers strongly prefer working from home—so much, in fact, that 25% said they would resign if forced to return to the office. “

Stubborn Trends Continue

Problems still remain when it comes to women on the corporate ladder. “Women just recently became the majority of the college-educated workforce, are now studying medicine at higher numbers than men, and have hit new records of Fortune 500 leadership. Despite these advancements, women continue to lag men on the corporate ladder.”

How Can The U.S. Respond?

Obviously, the pay gap remains to be addressed. National investments in childcare and employer support would go a long way toward encouraging women to rejoin the workforce. To this end, the U.S. Chamber of Commerce commissioned a study, "Childcare Solutions for Working Parents," that serves as a roadmap for employers.

The broad-brush recommendations include:

• Flexible scheduling
• Backup care
• Subsidies and vouchers
• Onsite care
• Public Advocacy
• Expand community capacity

None of these solutions are quick or easy, but we don't need a quick fix. We need a long-term solution.

How Can ASN Help

Our professionals are ready to assist you in creating short and long-term solutions to these issues. To get the ball rolling, give us a call. We would love to talk with you.