From Influence to Impact: The Rise of Millennial Women in Today's Economy

In a recent report from Ned Davis Research (NDR), it's suggested that women, particularly those in their late 20s and early 30s, are playing a pivotal role in shaping the economy for the better. Titled 'The Rising Influence of Millennial Women,' the study delves into various aspects of women's impact on economic indicators such as job participation, employment rates, stock market activity, and GDP growth.

According to NDR's findings, prime-age female job participation rates reached record highs in several developed economies in 2023, including the United States, Australia, Japan, Italy, South Korea, and Germany. Notably, women's participation in the labor force has seen a significant uptick compared to their male counterparts, particularly in countries like Australia, where women's job participation surged by over 3.25%, while men's remained relatively stagnant at 0.25%. Similarly, in the U.S., women's job activity increased by 0.5%, showcasing a notable trend towards greater female labor force engagement.

One contributing factor to this trend is the higher educational attainment among women, especially those aged 25 to 34. Studies have shown that women in this age group are more likely to have pursued education beyond high school than their male counterparts. This educational advantage has translated into a higher representation of college-educated women in the workforce, with women now comprising over half of the college-educated talent pool.

Moreover, the rise in female participation in the workforce has been supported by the shift towards hybrid and remote work arrangements, which have proven particularly beneficial for women, especially those with caregiving responsibilities. These changes in work dynamics have enabled women to participate more actively in the labor market while balancing other commitments.

In terms of economic impact, the report highlights that increased female labor force participation has positive implications for consumer spending and investment. Despite having lower incomes on average, women aged 25 to 44 tend to outspend their male counterparts, particularly in categories such as apparel, personal care items, and home-related purchases. Additionally, women's tendency to invest in their children's education contributes to the development of more productive future generations.

Overall, the report suggests that continued growth in female labor force participation could help offset the challenges posed by aging populations and drive economic growth. In the United States, for example, a 3% increase in the female labor force participation rate could lead to a significant boost in GDP. This trend also has implications for financial markets, as higher productivity and incomes contribute to increased spending and investment, ultimately driving up equity prices.

The rising influence of millennial women in the workforce is not only reshaping economic dynamics but also paving the way for a more inclusive and prosperous future.

For the full article and more of the study details click here.