Job quality is a policy decision: Better jobs can spur higher labor force participation for both men and women
Although there have been tremendous strides toward gender equity over the last few generations, it remains the fact that women and men tend to work in different types of jobs. The differences have narrowed over time, but the expansion and contraction of certain industries over the last five decades can likely explain some differences in men’s and women’s labor force participation.
Specifically, we have seen a long-term decline in male-dominated jobs—often jobs with higher pay thanks to higher unionization rates—alongside declines in men’s labor force participation (with the exception of the past decade). Meanwhile, female-dominated occupations are growing faster, but unfortunately many of these are currently lower-paying professions. To strengthen labor force participation, job quality and pay need to improve.
Employment losses were largest in male-dominated industries between 1976 and 2024In a newly released report highlighting trends in men’s and women’s labor force participation, we describe how structural factors affecting industries and occupations are key to explaining historical trends in labor force growth. For men, large declines in military and manufacturing jobs went hand-in-hand with the decline in men’s labor force participation over much of the last 50 years. These were disproportionately a source of good jobs—where wage levels were high, non-wage benefits were common, and social prestige was high. Agriculture, mining, forestry, and fisheries, and wholesale trade also all experienced significant losses in employment between 1976 and 2024.
In frictionless labor markets, men should have responded to the declines in male-dominated sectors simply by moving into new jobs created outside of these sectors. But since alternative sources of employment often offered less attractive jobs for men (particularly non-college men), many men instead dropped out of the labor force entirely.
Jobs of the future are in health care and caregiving, historically female-dominated professionsBy contrast, women are more likely to be employed in occupations that have grown in recent decades and are expected to keeping growing in the near future. Over the next decade, the Bureau of Labor Statistics projects that the fastest growing occupations will be in health care support, health care practitioners, computer and mathematical sciences, and community/social services. Women dominate the workforce in three of these four growing occupations: At least 70% of the workers in health care support and community and social services occupation groups are women.
Unfortunately, jobs in which women are overrepresented tend to provide lower pay and fewer benefits than male-dominated occupations, and wages tend to fall in occupations as the share of women increases. Health care support occupations, for example, only pay about three-fourths of the median wage overall ($37,000 versus $49,000). This wage is just barely above the poverty line for a family of four.
How occupational segregation affects men’s and women’s labor market choicesIt’s possible to draw the conclusion from the information above that men will continue to lose out on labor market opportunities and women will continue to gain opportunities, albeit at low pay. But jobs in growing fields such as health care and community and social services need not be dominated by women, nor must they be poor-quality jobs. Men and women make occupational choices based on a variety of individual decisions, as well as larger social and cultural influences. These occupational choices are shaped by a lifetime of experiences, educational expectations, hiring practices, and norms and beliefs about family roles and the division of household labor, which often track women into caregiving roles and men into technology and production roles. While this “occupational segregation” can have a big impact on labor market choices, policy that improves the quality of female-dominated jobs could improve labor market outcomes for both women and men.
Improving jobs of the future can support labor force participation for both men and womenIn order for these jobs of the future to be attractive for men and women alike, health care support and community and social service jobs need to pay better wages, provide better benefits, and improve working conditions. The following policy goals would all contribute to stronger labor force participation:
- Tight labor markets would not only draw more would-be workers into the labor force but also give those workers more leverage to secure better pay.
- Stronger labor standards, such as a higher minimum wage and overtime protections, would improve those jobs and make them more appealing to a broader range of workers.
- Increased unionization would also improve pay in those jobs. On average, workers in unionized jobs are paid 8% more than workers in non-union jobs. There is no reason currently low-paid occupations, like health care support jobs, couldn’t enjoy the benefits of unionization. The share of unionized workers in health care support jobs has recently increased, and their wages are higher than those of their non-union counterparts.
The post-pandemic labor market has given us some evidence that higher pay will translate into improved labor force participation. Despite the structural headwinds to men’s labor force participation imposed by the changing industrial composition of the economy, male labor force participation rates rose significantly in the past decade (and especially in the post-2019 period) as wage growth improved significantly, particularly for non-college workers.
There is no reason that jobs of the future should have bad job quality and low pay. Given that we know which jobs the U.S. economy will need in the next 10 years, policymakers should prioritize improving the quality of these jobs to ensure all workers will access them.
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