Source: Fortune
Summary
Women now hold more payroll jobs than men in the U.S., according to a new study by the National Association of Colleges and Employers (NACE). In 2023, women with bachelor’s degrees earned an average starting salary of $59,778, compared to $72,190 for men. This marks the third time in American history that women have a payroll majority, but the gender pay gap persists. Women earn 83 cents for every dollar men make, with the gap widening over time. The shift has raised concerns about men’s declining presence in the workforce, with 7 million fewer men employed than in the 1990s.
Our Reading
The numbers tell one story.
Women hold more jobs, but men still earn more.
The pay gap starts at graduation and grows with age.
Women dominate low-wage fields, while men dominate high-paying ones.
The milestone comes with a warning: progress is uneven.
Author: Evan Null
Women Hold More Jobs, But Pay Remains Unequal
For the first time in American history, women hold more payroll jobs than men. This shift has occurred without a recession, unlike previous instances in 2010 and 2020. Women’s employment has grown by over 870,000 in the past year, while men have lost nearly 1.5 million jobs. Despite this, the gender pay gap remains significant, with women earning 83 cents for every dollar men make.
The National Association of Colleges and Employers (NACE) reported that women with bachelor’s degrees earned $59,778 on average in 2023, compared to $72,190 for men. This gap is not just a result of education but also of career choices and societal roles. Women are overrepresented in lower-paying fields like education and healthcare, while men dominate higher-paying sectors like finance and STEM.
Experts suggest that the decline in men’s workforce participation is structural, not cyclical. The labor force participation rate for men aged 20 and older dropped to 69.4% in 2026, down from 75.8% in 2006. Some economists link this trend to economic uncertainty and changing perceptions of work among young men.
The gender pay gap widens with age, especially after women have children. Research by Nobel laureate Claudia Goldin shows that women’s earnings drop significantly after their first child, while men’s remain stable. This disparity is compounded by traditional gender roles, where women often take on more caregiving responsibilities.
While the milestone of women holding more jobs is notable, it comes with an asterisk. The shift does not necessarily mean progress for all women, especially those in low-wage jobs or facing systemic barriers. The challenge remains to address both the gender pay gap and the broader structural issues affecting workforce participation.
The Pay Gap Starts at the Start
The gender pay gap is not a new phenomenon, but it is deeply rooted in early career choices and societal expectations. Even before entering the workforce, women face a pay disadvantage. In 2023, women with bachelor’s degrees earned $59,778, compared to $72,190 for men. This 17% difference sets the tone for a lifetime of earnings disparities.
Women are more likely to enter lower-paying fields, such as education and healthcare, which are also the ones driving job growth. These industries, while essential, do not offer the same financial rewards as sectors like finance or technology. As a result, women are overrepresented in low-wage jobs, which further widens the overall pay gap.
The pay gap is not just about education or experience—it’s also about the choices women make in their careers. Many women leave the workforce or reduce their hours to care for children, which impacts their long-term earnings. Men, on the other hand, are less likely to take career breaks, allowing them to accumulate more experience and higher salaries over time.
Experts like Laura Ullrich of the Indeed Hiring Lab suggest that the decline in men’s workforce participation is a long-term trend, not a temporary setback. This shift has implications for both genders, as the traditional balance of power in the workplace continues to change.
Despite the progress in job numbers, the pay gap remains a significant issue. Women earn 81 cents for every dollar men make, and this gap only widens with age. The challenge is not just to increase women’s employment, but to ensure that their earnings match their contributions.
Structural Shifts and Gender Roles
The shift in job numbers reflects broader structural changes in the U.S. economy. Women have increasingly entered the workforce, particularly in sectors that have seen consistent growth, such as healthcare and education. These industries, while vital, often offer lower wages, contributing to the persistent pay gap.
Men, on the other hand, have seen a decline in employment, particularly in industries like construction and manufacturing. These sectors were hit hard during the pandemic, and men have struggled to recover. The decline in male employment has been steady over the past few decades, with 7 million fewer men in the workforce than in the 1990s.
Experts point to a variety of factors behind this trend. Some argue that economic uncertainty and a lack of job opportunities have led young men to disengage from the workforce. Others suggest that changing societal norms and the rise of alternative lifestyles, such as gaming, have contributed to the decline.
The gender pay gap is also influenced by traditional roles and expectations. Women are more likely to take on caregiving responsibilities, which can lead to career interruptions and lower earnings. Men, in contrast, are less likely to take time off for family reasons, allowing them to maintain steady income and career advancement.
While the milestone of women holding more jobs is significant, it does not signal an end to the challenges women face. The pay gap, occupational segregation, and gender roles continue to shape the labor market in ways that favor men.
The Impact of Parenthood on Earnings
One of the most significant factors in the gender pay gap is parenthood. Research by Nobel laureate Claudia Goldin shows that early-career pay gaps are relatively small, but they widen dramatically after a woman has her first child. This is because women often take time off work or reduce their hours to care for children, which impacts their long-term earnings.
Men, on the other hand, are less likely to take time off for family reasons. As a result, their earnings remain stable, while women’s earnings drop. This disparity is not just about time away from work—it’s also about the career choices women make. Many women choose to work part-time or take on roles that offer more flexibility, which can limit their earning potential.
The impact of parenthood is especially pronounced in the post-pandemic era. Return-to-office mandates have disproportionately affected working mothers, who often serve as primary caregivers. This has led to more women leaving the workforce or reducing their hours, further widening the pay gap.
Experts like Laura Ullrich of the Indeed Hiring Lab note that the decline in men’s workforce participation is a long-term trend, not a temporary setback. This shift has implications for both genders, as the traditional balance of power in the workplace continues to change.
The challenge remains to address both the gender pay gap and the broader structural issues affecting workforce participation. While women are making progress in job numbers, the path to true equality is still long and complex.
Women in the Workforce: Progress and Challenges
Women now hold more payroll jobs than men in the U.S., marking a significant shift in the labor market. This milestone, however, comes with challenges. Despite their growing presence in the workforce, women still earn less than men, with the pay gap widening over time. The shift is not just about numbers—it’s about the quality of jobs and the opportunities available to women.
The National Association of Colleges and Employers (NACE) found that women with bachelor’s degrees earned $59,778 on average in 2023, compared to $72,190 for men. This 17% difference is a clear indicator of the persistent pay gap. Women are also more likely to work in lower-paying fields, such as education and healthcare, which are essential but offer limited financial rewards.
Men, on the other hand, have seen a decline in employment, particularly in industries like construction and manufacturing. These sectors were hit hard during the pandemic, and men have struggled to recover. The decline in male employment has been steady over the past few decades, with 7 million fewer men in the workforce than in the 1990s.
The gender pay gap is also influenced by traditional roles and expectations. Women are more likely to take on caregiving responsibilities, which can lead to career interruptions and lower earnings. Men, in contrast, are less likely to take time off for family reasons, allowing them to maintain steady income and career advancement.
While the milestone of women holding more jobs is significant, it does not signal an end to the challenges women face. The pay gap, occupational segregation, and gender roles continue to shape the labor market in ways that favor men. Addressing these issues will require a comprehensive approach that includes policy changes, cultural shifts, and economic reforms.
