Job Market Sees Surge in Women Reentering the Labor Force, Economists says it’s a Good Sign

Businesses have closed down due to the pandemic, and many people have lost their jobs. While the authorities rigidly implemented the lockdown regulations, people of all genders struggled to make ends meet.

However, many people are reentering the workforce as a result of the relaxation of the limitations. Here is what individuals think about the recent increase in women returning to the workforce.

Qynisha Jordan is glad to be heading back to work after spending most of her time with her children inside her home. Two years have passed since she quit her position as an account manager at PepsiCo Atlanta due to the pandemic.

“The best part has definitely been having conversations with adults and adult interaction. That’s been awesome,” she said.

“I vividly remember when the school called and said they were closing school. And from then on, I was at home. It was really difficult. I had three children who were doing three completely different things, all at the same time. It was a lot,” Jordan added.

In the wake of the epidemic, 2 million women, including Jordan, resigned from their jobs. Since women had a variety of responsibilities, including caring for their ill families, children, and other people, she waited for the ideal moment to return to the workforce like many others.

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Two and a half years ago, the widespread firing of women raised concerns among businesses. Businesses have to cope with a labor shortage as a result of employee departures, which might have a long-term negative impact on the economy.

Policymakers and economists were concerned that if the trend persisted, women might decide against getting back. The reverse occurred, though, and women are again getting back on track.

“Women had a very tough road to haul with kids working from home and with school being so uncertain. But we’re seeing that the pandemic did not do permanent damage to women’s attachment to the labor force,” said Betsey Stevenson, an economist from the University of Michigan.

 

Inflation leaves many with no other choice

According to statistics, there were more women seeking positions last month. In addition, 49 million women between the ages of 25 and 54 are reportedly reentering the workforce.

The number is higher than the number of people in February 2020, before the implementation of the lockdowns. Further, women of color and Latinas appear to outnumber all other genders in the category of job seekers.

Stevenson cited two main causes for the increase in women’s employment. Due to the return of face-to-face lessons, people now have more free time since kids are returning to school.

The high pace of inflation, which causes prices to rise, is factor two. In the end, women who don’t make enough money have to find other sources of income to offset the growing costs of food, gas, and other services.

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“People are being sort of pushed by the rising prices to think, ‘Ugh, my savings are getting hit a little bit too hard.’ And instead of being out there spending their money, they’re going back to work to earn money,” explained Stevenson.

“We needed to adjust to a new normal. Maybe one reason we’re seeing people go back to work is they’ve been trying to figure out how to adjust, and they’re reaching some conclusions about how to do it — how to balance it all.”

Photo Credit: Getty Images

Source: NPR


Opinions expressed by US Business News contributors are their own.

Anthony Gomez

Posted by Anthony Gomez

Anthony is a part-time professor and full-time entrepreneur. He loves writing and teaching people the ins and outs of business.

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