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Millennial women are having an outsized impact on the global economy, according to Ned Davis Research.
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Female participation in the prime age work force has soared since 2019, far outpacing males.
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"The rise in millennial female participation should have positive implications for the economy and equities in the long-term," NDR said.
Millennial women are starting to have an outsized impact on the global economy, and that should drive the stock market higher for years to come, according to Ned Davis Research.
NDR chief economist Alejandra Grindal highlighted in a recent note that the prime-age female job-participation rate hit a record high in the US, Australia, Japan, Germany, Italy, and South Korea in 2023.
Overall, the female job participation rate has surged since 2019 across several developed economies, far outpacing the gains made by their male counterparts.
"A combination of the types of jobs in demand — which have greater female concentration, higher levels of tertiary education among younger females compared to males, and increased work from home, which allows more flexibility for care of dependents — have likely played a role in increasing participation," Grindal said.
Education plays a key role in the employment picture, and Grindal highlighted that across 19 major economies, women between the ages of 25 and 34 are more likely to have an education beyond high school when compared to men.
"The unemployment rate tends to be lower among people with higher education, which helps explain the greater take-up of women in the workforce. People with greater education are also more likely to have full-time jobs and to be employed productively," Grindal explained.
The US in particular has seen a surge in the millennial women workforce since 2019, and that bodes well for further economic growth.
That's because research from NDR found that compared to men, single women in the US spend more money, are more likely to own a home, and offer more upside to productivity growth.
All of that is positive for the economy.
"Holding all else constant, the rising female participation in the work force increases potential real GDP growth," Grindal said. "This not only comes from the labor supply component, but also in the form of productivity. Younger women are more likely to have higher education and thus, be employed productively."
She continued: "Females also have a greater tendency to spend money on educating their children, which leads to more productive generations down the road."