Women’s Employment Update: Women Gain Three-Quarters of the New Jobs But Most Growth Is in Low-Wage Sectors—Again

Today’s monthly jobs report released by Bureau of Labor Statistics shows mixed signs for women and the workforce.  Here are some important figures from NWLC's analysis of the new report:

• Women gained 125,000 jobs in August, which amount to three-quarters of overall job growth. Most of the new jobs in August, however, were in low-wage sectors, continuing a trend we saw last month and—especially for women—since the start of the recovery. Overall, five low-wage sectors (retail, leisure and hospitality, temporary help, home health care services, and nursing and residential care facilities) made up nearly 60 percent of the net job gains in August, despite the fact that these sectors account for just over one-quarter (27 percent) of the economy.

At this rate, the purple wedge in our economy will keep growing and women will continue to struggle to find well-paying jobs.

• The economy added 169,000 jobs in August, which was in line with most economists’ predictions; however, BLS revised its job estimates for July downward from 162,000 to 104,000. Even if job growth continues at the August pace, the Hamilton Projectprojects that we wouldn’t close the jobs gap for nearly a decade. (For all of you wonks out there, they define the “jobs gap” as the number of jobs the U.S. needs to add to return to pre-recession employment levels while also absorbing the people who enter the labor force each month).
• Overall adult unemployment decreased to 7.3 percent and adult women’s unemployment rate continued to decline to 6.3 percent. This marks the lowest unemployment rate for women since December 2008—but it is still nearly two percentage points higher than at the start of the recession in December 2007.  In addition, some vulnerable populations saw unemployment rates increase in August, including adult African-American men, African-American women, and adult Hispanic men. Single mothers saw a half percentage point increase in their unemployment rate in the last month (from 10.5 to 11.0 percent). These vulnerable groups have unemployment rates about one-and-a-half times higher than they were at the start of the recession.

Other disturbing trends to note:

• While men made their biggest job gains this month in manufacturing (+19,000), the sector was one of the worst in terms of net job losses for women (-5,000).  We’ve documented the divergence in the manufacturing gains before and it is troubling to see it continue.  These numbers suggest continued occupational segregation in the workforce – a factor which tends to depress women’s wages.
• 1.9 million adult women are still unemployed after more than six months of job searching. These long-term unemployed women make up 38 percent of unemployed women, a share that is still twice as high as it was at the beginning of the recession.
• Long-term unemployment is a continued concern as states implement the across-the-board budget cuts known as sequestration. According to the National Employment Law Project, 48 states and the District of Columbia have already made deep cuts to unemployment insurance. These cuts are most dangerous in states with the highest unemployment rates. Nevada, which has the nation’s highest unemployment rate at 9.5 percent, cut unemployment insurance benefits by 59 percent for more than 20,000 long term unemployed workers. 

The August jobs numbers are decidedly mixed. The mild progress in August can largely be attributed to growth in low-wage jobs. More sequestration cuts are looming, threatening more painful cuts for vulnerable families and slower growth for the economy. .