Record-breaking number of women in the workforce: Is the economy equipped to handle it?

The labor force participation rate for women ages 25 to 54 in the US reached a record high of 77.8% in June, surpassing pre-pandemic levels, thanks to a robust recovery, increased availability of child care, and remote work options. The larger pool of female workers has helped boost the overall labor force participation rate, easing inflationary pressures. However, the participation rate remains below pre-COVID levels due to early retirements of baby boomers. While more women are entering the workforce, concerns remain about the sustainability of this trend as consumer spending moderates and job gains slow.