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Who Runs the Economy? Girls
How women have helped fuel the economy and stave off a recession.
For the past two years, economists and business leaders have predicted a recession that often felt inevitable. But despite these ongoing fears, an economic downturn has been held at bay by strong employment rates, high productivity, and solid consumer spending — all factors in which women have played a large role. Let’s take a closer look:
More women are entering the workforce
The rise of remote work caused a surge of women in the labor force. 2023 saw a record percentage of “prime age” working women (ages 25-54), driven by moms of young children. And this is good for the economy – experts believe this high workforce participation is one of the reasons the dreaded recession hasn’t come to fruition.
“The strong labor force participation of women workers and the strength of the economy are intertwined.”
While other factors are certainly at play in the labor market, women appear to be major contributors.
More women are opening businesses
Women entrepreneurs are thriving. According to a new report from Yelp, women-owned businesses saw a 17% gain in new openings last year. In categories like Travel and Professional Services, the rate of women-owned business openings was higher than the national average for new businesses.
Notably, women-owned businesses are popping up in industries that are traditionally male-dominated. In the home services category (i.e. plumbing, HVAC repair, etc.):
Businesses founded by women increased 38% last year, 6% higher than the national average.
Women-owned general contractor businesses in Boston increased by 500%, while women-owned flooring firms in D.C. and electrician businesses in Miami both had 400% growth.
Women are driving consumer spending
The booming creator economy is largely fueled by women, who represent:
70% of social media influencers
77% of people who monetize digital content
As a result, women are shaping consumer purchases more than ever. Yelp data shows that buyer behavior in fashion, fitness, and fiction was impacted by trends established and made popular by women.
Case in point: women-created styles like “coastal grandmother” and Barbiecore dominated social media feeds in 2023 (prepare to break out your leather pants — the first big trend of 2024 is the “mob wife aesthetic”).
These spending behaviors aren’t an accident – more shoppers are actively seeking out women-owned businesses. Yelp searches for women-owned bookstores increased by 74%, and for women-owned fashion companies, by a whopping 1,613%.
Sidebar: Pundits often refer to the phenomenon of women-led economic growth as the “she-conomy,” but some have argued that the term is reductive. “This language implies that women’s interests are not being deemed serious enough for true economic consideration,” said one influencer.
What do you think? Is “she-conomy” a harmless, clever pun or a demeaning turn of phrase? Reply and let us know.
In conclusion…
While there’s still work to be done in areas like wage parity, paid parental leave, and increased flexible working arrangements, it’s clear that women’s economic power is on the rise and the entire country stands to benefit.
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