Female Participation Rate in the Labour Force

The female participation rate in the workforce is estimated to rise by 1.4 percentage points over the five years through 2022-23, to reach 75.3%. Both social and economic trends have a significant effect on the female and male participation rate. The main social trend has been towards fewer women having children and those that do taking less time out of work and returning to the workforce sooner after having children. Women returning to the workforce quicker often means that, in any given year, there tends to be fewer women out of the workforce.

Women may not be economically active for a number of reasons, the most common of which is looking after family or the home. In 2018-19 and 2019-20, 33.7% and 34% of women not participating in the workforce respectively were classified in this category, compared to just 6.7% and 6.6% of men who were not participating respectively. Being in education was the second most common reason, at 21.6% and 21.9% respectively, followed by long-term sickness, which accounted for 19.5% and 18.9% of women not participating respectively – these proportions for both education and long-term sickness being reasons for women not participating in the workforce, were significantly lower than the same reasons for men not participating. Economic activity also varies with age. Only 31.6% and 32% of females aged 16 to 17 years old were in the workforce in 2018-19 and 2019-20 respectively, compared to 82% and 82.1% of females aged 35 to 49 years old.

Prior to the financial crisis in 2008, more families were assumed to have felt financially secure enough to have children, reflected in the period’s higher birth rate. Moreover, many women who had pursued their career through their early years decided it was time to have children. The corresponding rise in the number of children meant that some women left the work force, either temporarily or indefinitely, to have and raise children. The participation rate fell in 2007-08 as a result. During the recession people who were concerned about job security delayed having children and some mothers returned to the work force to help prop up family finances. However, these trends were offset by the usual discouragement of some workers during economic downturns and the participation rate remained largely unchanged as a result of these competing forces. Nonetheless, with increasing job prospects, the female participation rate rose year-on-year since 2008-09, as the previously discouraged would-be workers felt more confident to seek employment – that is, as economic conditions strengthened and unemployment rapidly declined, female participation in the workforce continued on an upwards trajectory. Moreover, benefits for working-age people have been frozen in cash terms since April 2015, making a life out of work less attractive and effectively encouraging participation, compounded by a rising minimum wage.

In 2021-22, the female participation rate levelled off at 75.2%. However, this is expected to be a temporary slowdown as the COVID-19 (coronavirus) pandemic and consequent exogeneous economic shock are expected to drive unemployment up and reduce the number of people joining the workforce. For both women and men, the employment rate has fallen, while the economy continues to be characterised by pandemic-related disruption. Meanwhile, as is characteristic during economic downturn, job prospects will likely remain lacklustre through the current year, discouraging more people from seeking out work until recovery ensues, effectively removing those from the labour force and towards economic inactivity. In 2022-23, the female participation rate in the workforce is expected to expand by 0.1 percentage point, to reach 75.3%.