The last couple of years have ushered in fresh job opportunities and more flexible working arrangements, drawing plenty of workers back into the workforce since the COVID nadir.
Over 83% of prime-age workers (aged 25 to 54) were participating in the labor market as of October — levels “not seen since the early 2000s,” according to a recent Indeed report.
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Nick Bunker, the economic research director for North America at the Indeed Hiring Lab, said that although demand for workers has dropped 20% from its peak in January 2022, job postings are still elevated compared to pre-pandemic times.
But he also points to certain subgroups of prime-age workers that are seeing a speedier rebound.
“There's a rising tide — all boats are lifting, but some are rising more quickly than others,” Bunker says.
Women leading the way
Prime-age women are setting the pace among labor force participants.
Women with young children, in particular, have seen their participation rise 1.4% compared to the pre-pandemic record, according to Brookings.
Alicia Modestino, an economist at Northeastern University, said the rise of flexible and remote work, along with boosted childcare funding, may have assisted this group’s recovery, but she’s worried what might happen if these benefits unwind.
“We're already seeing some of that softening in terms of worker power shifting,” she says, noting more companies are calling their employees back into the office and seem more likely to lay off their remote workers over folks who show up more frequently in person.
Men's fortunes rebounding, too
Prime-age men — a demographic that has been stepping out of the labor market for years — could be seeing an unexpected, if not as drastic, rebound as well.
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Bunker indicates that the construction industry, which disproportionately employs men, has still held strong despite the rapid rise in mortgage rates over the past year. And a November note from Wells Fargo suggests other male-dominated sectors like manufacturing, transportation and warehousing have grown as well.
The Wells Fargo report also says that less educated prime-age men could be returning to the labor market during a shift to more skills-based hiring, as demand for workers remains elevated.