Sunday, March 12, 2006

More about Women in the Labor Force

Let's talk about the labor force participation rate of women again. This time, let's look at labor force rates by Hispanic origin. Hispanic women are much less likely to work than the average American woman, and the growing presence of Hispanics among young adults in the population is reducing the labor force participation rates of young women. 

In 2005, the labor force participation rate of Hispanic women aged 20 to 24 was just 59.4 percent—much lower than the 70.1 percent labor force participation rate of all women in the age group. Subtracting Hispanics from the total lifts the labor force participation rate of women aged 20 to 24 to 72.2 percent. 

Men are not immune from these forces, although Hispanics have the opposite effect on men's rates because Hispanic men are more likely to work than non-Hispanic men. The labor force participation rate of men aged 20 to 24 was 79.1 percent in 2005. Without Hispanic men in the mix, the age group's labor force participation would have been an even lower 77.9 percent.

Between 2000 and 2005, the labor force participation rate of women aged 20 to 24 fell 3.0 percentage points (from 73.1 to 70.1 percent). The labor force participation rate of men aged 20 to 24 fell 3.5 percentage points (from 82.6 to 79.1 percent). The rates for Hispanic men and women fell by an even larger amount—down more than 5 percentage points during those years. What explains a decline in labor force participation that is greater among men than women and greater among Hispanics (who are more likely to work in low-paying entry-level jobs) than non-Hispanics? The explanation is a weak economy.

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