How Big is the US Labor Force?

102.8k

The workforce is the real number of people available to work and is the sum of the employed and the unemployed. It includes people 16 years of age or older residing in all 50 states and the District of Columbia who are not held in institutions (e.g., prisons and psychiatric centers, nursing homes) and who are not on active duty in the Armed Forces. In the United States, there were three important stages of increasing women's participation in the labor force. During the late 19th century and until the 1920s, very few women were employed.

Working women were often single young people who normally withdrew from the workforce when they married, unless their family needed two incomes. These women worked mainly in the textile manufacturing industry or as domestic workers. This profession empowered women and allowed them to earn a living wage. Sometimes, they were a financial aid for their families. Between 1930 and 1950, female participation in the labor force increased mainly due to the increase in demand for office workers, the participation of women in the high school movement, and electrification, which reduced time spent on household chores.

In the 1950s and 1970s, most women had secondary incomes and worked primarily as secretaries, teachers, nurses, and librarians (pink collar jobs).According to the Congressional Research Service, the gap between women and men has been smaller since 1979: the cumulative percentage change in women's real wages increased by 9.6% (10th percentile), while men decreased by -7.7%. However, with the incredible increase, the real wage of women was still lower than that of men. This could be explained by a different starting point. Starting in 1979, women had more options and more opportunities to earn a higher degree than a high school diploma. In addition, according to the research, only men with a bachelor's degree or higher would have higher real incomes than women.

A common theory in modern economics states that the increase in women participating in the American workforce in the late 1960s was due to the introduction of new contraceptive technology, birth control pills, and the tightening of laws on coming of age. The use of contraceptive methods gave women the flexibility to choose to invest and advance their careers while in a relationship. By having control over the timing of their fertility, they didn't run the risk of frustrating their professional choices. However, only 40% of the population actually used the contraceptive pill. This implies that other factors may have contributed to women deciding to invest in the advancement of their careers.

Another factor that may have contributed to the trend was the Equal Pay Act of 1963, which aimed to abolish the gender wage gap. Such legislation reduces sex discrimination and encourages more women to enter the labor market by receiving fair pay to help raise their children. In 1963, the Equal Pay Act, the Civil Rights Act (196) and Title IX (197) were passed; all of these policies together support the increase in the number of women (LFP). The Equal Pay Act protects both men and women against discrimination on the basis of sex in the payment of wages. These policies also ensure that the labor market pays attention and complies with regulations regarding sex. However, the big move was the power of the pill (1960).

Although it was approved by FDA in 1960, it took some time for all states to establish their regulations and restrictions. After its introduction, women could extend their professional education time as well as delay marriage until later ages. According to University of Chicago Press Journal, there was a big change in women's first marriage and educational career: more than 20% for first-year law students; less than 30% of young women wanted to get married before their 23rd birthday. Most of these women interviewed answered that this change was due to the pill. It was natural for men to continue working regardless if their wages rose or fell; they weren't affected by their wives' employment status.

However, from 19 years old onwards, women were willing to work regardless of their husband's employment status. According to 1861 United States Census, one-third of women were in the labor force, with one-quarter being married women. Income, Poverty and Health Insurance data from U. S Bureau of Labor Statistics shows that labor force participation has declined steadily since 2000 due mainly to aging baby boomer generation retirement. The analysis of labor force participation trends among working-age cohort (25-54 years old) helps separate population aging impact from other demographic factors.

Yes, current participation rate among middle-aged workers is actually higher compared to two years ago. It is also interesting to note that there has been a marked decline in participation rate among workers aged 55+ due to COVID-19 pandemic which hasn't been reversed since then. With 259 million adult Americans this 1.7 percentage point decline translates into disappearance of 4.4 million workers.