EconExtra is a series of posts that go beyond the textbook, relating current events and recent developments in economics to content standards, and providing resource suggestions to help you incorporate the current events into your lessons. 

In January 2020, we learned that the number of women employed (non-farm payroll) in the US outnumbered men for the first time at the end of 2019. (FinCap Friday) Then came the pandemic. Covid hit women particularly hard. As early as last spring, the term “Shecession” was being used to describe the Covid-driven recession (NYT), as women were losing jobs or leaving the workforce to care for children. “By April, nearly half of mothers living with school-aged children weren’t working.”

By January 2021, women’s labor force participation hit a 33-year low. 2.3 million women have left the workforce. (CNBC) One of The Economist's "Daily Chart" this week (see below) reiterated the impact on women, citing several research papers.  The graph on the right takes measures labor force participation over time as a percent of the February 2020 starting point.  Fathers fared the best, and mothers, the worst.  

While men and women are starting to get back to work, headlines in recent weeks are shedding light on the fact that the ramifications of the hit may be felt (by women) for years to come. Janet Yellen discussed this earlier this week. (Reuters) This phenomenon is not limited to the United States. PWC measured the impact on employment among women across all OECD economies.  The Economist 

Even my local evening news covered the story, using the graphics from this NYT article. In April of 2020, women of all ethnicities showed a significantly larger decline in employment from pre-pandemic levels than their male counterparts. Hardest hit in the early days of the pandemic were Hispanic women, dropping 24%. Flash forward to the end of February, and employment levels are moving back up. However, there are still disparities. For example, the number of black women employed remains 10% below pre-pandemic levels, compared to 5% for white males. Women have lost one million more jobs than men.

People are returning to work, including mothers of school-age children, but there are still some key differences. (NYT) Even when women continued to work, or have gone back to work, they were shouldering a disproportionate share of the childcare and household burden. The gender gap in hours worked has increased during the pandemic. (MarketPlace)

The pandemic is expected to have other lasting demographic impacts.  Recessions and pandemics have historically translated into baby busts. The expectation is that Covid will mean 300,000 fewer births, or an 8% drop in an already decreasing trend. (NYT) 

Quick Lesson  

1) This USA Today video may be a good place to start. (under 2 minutes)

2) Discussion can follow and focus on

• types of employers who shut down/laid off workers
• which jobs are more often held by women
• what happened in December that led to net job losses again?
• who typically gets paid more (men/women), so who drops out to care for children?

Then follow it up with this New York Times article that breaks down unemployment throughout the pandemic by race and gender or The Economist article if you have access to it that discusses research with other breakdowns of the data. (Sources of the graphs above).

3) To add some historical perspective, check with this interactive from the Department of Labor that tracks occupations held by women over the last 100 years.

4) Add more historical context by looking at the employment picture for women during past economic downturns.  Compare and contrast with the Covid recession.

• The Great Depression in the 1930s. (History.com)

“From 1930 to 1940, the number of employed women in the United States rose 24 percent from 10.5 million to 13 million. The main reason for women’s higher employment rates was the fact that the jobs available to women—so called “women’s work”— were in industries that were less impacted by the stock market.”

This article goes on to specify what happened to women of different ethnic groups as well as changing demographic trends that were likely the result of the depression. The marriage rate went down, and single women had to support themselves.

• Great Recession beginning in 2008. (Economic Policy Institute)

Men lost more jobs than women, but then regained more as the recovery started.

About the Author

Beth Tallman

Beth Tallman entered the working world armed with an MBA in finance and thoroughly enjoyed her first career working in manufacturing and telecommunications, including a stint overseas. She took advantage of an involuntary separation to try teaching high school math, something she had always dreamed of doing. When fate stepped in once again, Beth jumped on the opportunity to combine her passion for numbers, money, and education to develop curriculum and teach personal finance at Oberlin College. Beth now spends her time writing on personal finance and financial education, conducts student workshops, and develops finance curricula and educational content. She is also the Treasurer of Ohio Jump$tart Coalition for Personal Financial Literacy.

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