Women are reentering the workforce at a record pace. Here's why

Female participation rates in the US and European labor forces have surged past pre-pandemic levels. RGP CEO Kate Duchene (RGP) discusses the record pace of women, particularly women with college degrees, reentering the workforce, a driving economic force she has been very vocal and supportive of.

The want for overall worker diversity is "driven by what's good for business," Duchene stipulates, adding that "bringing women back [into the workforce], especially women with college degrees that move into financial management positions, project management positions, HR-related [positions]... all of those skill sets are really needed because of retirement pressures and professional choices that incoming talent is making, especially, say, in the finance and accounting arena, where we can't get enough new college graduates into those professions right now."

Duchene points out that DEI initiatives (Diversity, equity, and inclusion) by corporations are constantly under pressure and face criticism, as well as the nature of hybrid work models in the modern employment environment.

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Editor's note: This article was written by Luke Carberry Mogan.

Video transcript

JULIE HYMAN: Women are coming back to work in a big way. According to the Bureau of Labor Statistics, female labor force participation hit an all-time high last year, recovering major ground after a pandemic-era pullback. While they still make up less than half of the total US workforce, women's participation is broadening out to bigger roles and new industries.

And joining us now to discuss, Kate Duchene, the CEO of consulting firm, RGP. Thanks so much for joining us, Kate. So what do you think are the major factors that have been fueling this return to work?

KATE DUCHENE: Well, I think the biggest factor is that there's more flexibility in how work can be accomplished, meaning either remote work or more flexible schedules. And certainly, the use of technology and digital tools has helped create more flexibility in the delivery of work. And women benefit from that, especially having left the workforce during the pandemic when they needed to care for others in the home many times. And now that we have new tools and new hybrid work policies, it's really encouraged women to come back.

JOSH LIPTON: And, Kate, when we say women are re-entering the workforce at this record clip, which women, Kate? What are the demos in terms of age, race, socioeconomics?

KATE DUCHENE: So it's educated women. So let's talk about that for a minute. I think, Julie, you just shared that women still are below 50% in overall participation. But when you look at the stat of 25-year-old women and above with college degrees, women actually make up 51% of the workforce in the US. Certain demographics and disadvantaged populations are seeing less growth than that but still showing improvement.

JULIE HYMAN: And Kate, what effect are we seeing on the backlash against DEI programs on female and minority for that matter workforce participation? Is that having an impact? Is that pushing things down at all?

KATE DUCHENE: We're not seeing it yet you did reference that female participation was at an all-time high last month. This latest month has only dipped down by a very small degree. So I don't think we're seeing that yet. But that is a risk factor that I think we have to pay attention to.

In more conservative economic environments, some of those programs tend to receive pressure. But they're still so important to ensuring that we have the talent and the skill sets we need in today's very disrupted market.

JULIE HYMAN: Well, and Kate, I'm curious what you're hearing from your clients on that front. Are they-- is there still that appetite for diverse workforces whether it be-- whether it be gender or other types of diversity?

KATE DUCHENE: I think the answer is yes. And it's really driven by what's good for business and aligning what's good for business and also the core values of organizations. But when you look at what's good for business, bringing women back, especially women with college degrees that can move into financial management positions, project management positions, HR-related, there's so much happening in workforce transformation in today's work environment, all those skill sets are really needed because of retirement pressures and professional choices that incoming talent is making, especially, say, in the finance and accounting arena, where we can't get enough new college graduates into those professions right now.

JOSH LIPTON: And Kate, I'm interested, what role does hybrid work play in the discussion we're having?

KATE DUCHENE: I think it plays a big role. Still, I think in a recent report of the Fortune 500, hybrid is definitely the prevalent work style of today, meaning two, three days in the office. And that seems to suit a broader population of talent, including women, and gives one more flexibility in how work is performed. So I think it plays a big role. I think hybrid is here to stay. I think the implementation of hybrid means different things to different companies.

But having that element of more flexibility and certainly where talent can deliver around the world-- I mean, what we're seeing is this talent population. It's not just North America-centric anymore. We're really seeing a global talent pool.

JULIE HYMAN: And Kate, you've mentioned a couple of times, it's interesting to me, you know, hybrid work obviously is something that only certain people can do by the nature of their jobs. You also mentioned that it is more women with higher education levels that have returned to the workforce in higher numbers. Where does that leave other women, right, women who are in jobs that are hands-on jobs who don't have as high education levels? Because it seems like maybe they have more ground to make up.

KATE DUCHENE: Right. Well, I think a good example, and this is not less education, but we all know what happened during the pandemic in the nursing profession, which is largely dominated by women. And what we've seen following the pandemic is that many women decided to change career focus and leave some of those professions that required more on-site delivery and move into I mentioned project management before. But there's been a real uptick in project management participation by women and especially at the leadership level.

I mean, women have great multitasking skills. We tend to manage many constituencies in our life. And so those skills really match up I think, though, Julie, your point about needing to upskill in order to get the opportunities that one wants, that fits into both life and work is really important. And if you're not willing to invest in that learning or upskilling, your choices will be more limited.

JOSH LIPTON: Kate, thanks so much. Important conversation. Thank you for joining us.

KATE DUCHENE: You're welcome. Thanks for having