Alabama trails nation in women’s employment as U.S. rates hit historic high

As women’s employment rates across the United States reach record highs, Alabama lags with one of the lowest female labor force participation rates in the Southeast. In 2023, only 52 percent of Alabama’s prime-age women (ages 25-54) were employed, highlighting a substantial underutilization of the state’s female workforce, according to data from the Alabama Department of Labor.

This stands in stark contrast to the national average of 75.1 percent — a record level, as reported by The Pew Charitable Trusts.

Nationwide, states like Arizona, Washington, D.C., and Colorado have seen the most significant gains, with Arizona leading at a 76.1 percent employment rate for prime-age women in 2023. Yet across all states, a gender gap remains, with 11.2 percent fewer prime-age women than men employed. In Alabama, this disparity is further compounded by a considerable gender wage gap. Women working full-time in Alabama earned a median weekly wage of $873 compared to $1,084 for men, resulting in an earnings ratio of just 80.5 percent.

To address these disparities, Alabama established the Workforce and Wage Gap Task Force in 2022 through House Joint Resolution 115. Chaired by Melanie R. Bridgeforth, then-president and CEO of the Women’s Foundation of Alabama, the task force was charged with identifying evidence-based solutions to close gender gaps in employment and wages. Comprising lawmakers, business leaders, and experts in education and public policy, the task force conducted six months of research before presenting its findings to the state legislature in 2023. Recommendations included expanding affordable childcare, strengthening equal pay protections, and investing in workforce development programs for women and girls.

Analysts from Pew emphasized that rising employment among women benefits state economies by increasing tax revenues and reducing demand for public assistance. This is particularly relevant for Alabama, where stronger female workforce participation could help counter the challenges of an aging population and anticipated workforce shortages. During her time on the Task Force, Bridgeforth emphasized the transformative impact that pay equity could have on reducing poverty in the state. “If single women were paid comparable to men in Alabama, it would reduce poverty by half,” she stated, underscoring the critical role of fair wages.

Bridgeforth highlighted that “74 percent of women in Alabama are breadwinners,” with many carrying the weight of supporting families and communities. Yet, these same women are more likely to experience wage inequality, which she identifies as the “crux of the issue.” She defined a breadwinner as someone contributing at least 40 percent of the total family income, noting that 60 percent of Alabama’s breadwinners are single mothers, further underscoring the need for policy solutions to bridge these economic disparities.

National trends reveal various factors driving female workforce growth, including the expansion of remote and hybrid work options that offer greater flexibility, particularly for women with young children. The rising cost of living and tight labor market have also prompted more women to seek employment, with many pursuing entrepreneurship. Highly educated women, in particular, are participating in full-time, year-round employment at higher rates than before.

For Alabama, the findings underscore both the progress yet to be made and the potential economic gains from tapping into this “untapped potential.” If lawmakers would fully embrace the task force’s recommendations, Alabama has an opportunity to strengthen its economy and bridge longstanding employment and wage gaps that have held the state back.