The gender gap in hiring is drawing renewed attention as the U.S. added fewer jobs than expected last month and unemployment edged up to 4.2%. Economist Betsey Stevenson of the University of Michigan said the data points to a low-fire, low-hire labor market where workers can hold on to existing positions, but landing a new role is getting tougher.
Stevenson said this environment hurts both jobseekers and those already employed, since the biggest wage gains typically come from switching jobs. Average pay is not keeping pace with inflation, she noted, reinforcing the pressure many households feel.
Gender gap in hiring
Although last month’s gains were split more evenly, with 14,000 of the 29,000 new jobs going to women, Stevenson said the longer trend since July shows women capturing essentially all net job growth. Women now hold about 50.1% of jobs. She attributed this to healthcare, which continues to power hiring and employs a workforce that is predominantly female. She contrasted that with artificial intelligence, which is boosting economic output but has not translated into broad job creation.
Rising unemployment for Black workers
Unemployment among Black workers jumped by a full percentage point and is now more than double the rate for white workers. Stevenson urged caution about reading too much into a single month, since subgroup data can be volatile, but said the pattern fits a weaker labor market where workers who typically rely on frequent job changes are finding fewer openings.
She described a K-shaped dynamic. Those already doing well continue to advance, while people trying to enter, stay in, or move up in the labor market face more barriers. Fewer opportunities lead to fewer quits, which in turn reduce openings for others and help hold down wages.
What to watch ahead
Looking toward Election Day, Stevenson said she is watching consumer confidence and behavior, including spending in leisure and hospitality, to gauge whether anxiety is starting to slow the economy. She added that policymakers should keep jobs and affordability at the forefront, reflecting what many Americans say is top of mind.
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