NEW YORK — The COVID-19 pandemic has had a considerable impact on women in the U.S. workforce. Although most women who lost their jobs or left the workforce during the pandemic have returned, a recent report reveals the long-term consequences they have faced. In 2023, the gender pay gap between men and women working full-time increased for the first time in two decades, according to data compiled by the U.S. Census Bureau.
Economists have noted that this data reflects a complex phase in the uneven recovery of the job market following the pandemic. Many women have returned to full-time roles, particularly in sectors that were deeply affected by the crisis, such as hospitality and caregiving, where female employees are significantly represented.
While this situation is concerning, not all the findings are negative. Overall wages for workers rose in the past year, but men saw a more significant increase than their female counterparts. Even though the gender pay gap has widened, it aligns closely with the gap observed in 2019, prior to the pandemic’s onset.
In 2023, women employed full-time earned approximately 83 cents for every dollar earned by men, a slight decrease from 84 cents in 2022. According to the Census Bureau, this marks the first substantial increase in the gender wage gap since 2003. This reversal follows a trend over the past five years where the wage gap had been narrowing—an improvement largely attributed to rising average earnings for women as many lower-wage female workers exited the job market.
S.J. Glynn, chief economist at the Labor Department, cautioned that it remains uncertain whether the 2023 figures indicate a one-time fluctuation or potentially a more concerning trend regarding the gender wage gap. Nevertheless, she emphasized that returning to pre-pandemic conditions serves as a reminder of how far women were behind initially, illustrating how the pandemic has impeded progress toward gender equality.
The experiences of Hispanic women highlight the intricacies of the current labor market. According to analyzed Census Bureau data, they were the only demographic group of women whose wage gap compared to white men slightly decreased between 2022 and 2023. In contrast, the wage gap widened for both Black and Asian women, while white women’s earnings remained unchanged.
Latinas have increasingly contributed to the U.S. economy, entering the workforce more rapidly than their non-Hispanic counterparts. In the year from 2022 to 2023, the employment rate for Latinas surged by 5%, while the overall number of full-time female workers remained steady.
Matthew Fienup, executive director of California Lutheran University’s Center for Economic Research & Forecasting, stated that the upward trend for Latina wages, educational advancement, and contributions to the U.S. GDP is expected to persist in the future. It’s important to note that despite the fluctuations from year to year, the gender wage gap has overall trended toward narrowing since 1981.
While progress continues, it remains slow and occasionally stagnant. Latinas still rank among the lowest earnings demographics, with median full-time salaries at $43,880, compared to $50,470 for Black women, $60,450 for white women, and $75,950 for white men. This increased representation of Latinas in the workforce during 2023 contributed to slower median wage growth for women as a whole, possibly accounting for the widening gender wage gap during the year, as noted by Liana Fox from the Census Bureau.
Moreover, they were among the demographics hardest hit by the pandemic, facing an unemployment rate of 20.1% in April 2020, the highest among major demographic groups. Domestic workers, who largely consist of immigrant women, were particularly affected. Ingrid Vaca, a Hispanic caregiver from Falls Church, Virginia, narrated her struggles of contracting COVID-19 multiple times and facing hardships as she was unable to work due to health complications.
The Census Bureau computes the gender wage gap based solely on full-time, year-round workers. However, the situation appears grimmer when including part-time workers, as indicated by Jocelyn Frye, president of the National Partnership for Women & Families. Latinas earn only 51 cents for every dollar earned by white men under this broader measure, showing a widening gap from 52 cents in 2022.
Ariane Hegewisch, program director for employment and earnings at the Institute for Women’s Policy Research, noted that the slight narrowing of wage gaps for Latinas might stem from an increase in their presence in higher-paying roles. Nevertheless, the percentage of Latinas occupying low-wage jobs also increased in 2023.
Experts assert that the U.S. will likely continue facing a gender pay gap until structural issues contributing to it are addressed. Seher Khawaja from Legal Momentum highlighted the reliance on women for unpaid care work, stating that addressing the value of such labor is critical for progress toward gender pay equity.
Despite a consensus across political lines regarding the systemic challenges women encounter in the workforce, finding mutual agreement on viable policy solutions remains difficult. Efforts around the Paycheck Fairness Act, which aims to strengthen protections against wage discrimination, have met resistance from some factions. Nonetheless, there is ongoing advocacy to improve conditions for working women.
The implications of pay inequity extend beyond women, affecting families and perpetuating cycles of poverty. Khawaja stressed the far-reaching consequences of insufficient wages on the well-being of women, their families, and future generations.