After Decades on Rise, Female Labor Participation Rate Is Down

The Washington Post reports:

The trend was clear and consistent. Since the end of World War II and stretching to the start of the current millennium, the percentage of American women entering the labor force rose steadily, at a rate so fast that it offset the steady decline in participation by men.

The influx of fresh workers buoyed economic growth. As companies expanded and demand rose, there were plenty of hands to get the job done.

But women's rush to employment stopped in 2000 and started to decline, as they began to join their male counterparts in retirement, go out on disability and delay paid employment to get more education. Some economists think the high-water mark of female participation in the labor force was in 2000, when it hit 60.3 percent.

"The enormous rise in [the] women's labor force participation rate was destined to run its course," wrote demographer Cheryl Russell in a recent analysis. "Most women who want or need to work are now in the labor force."

This flattening of the women's rate, combined with a continuing decline in the men's rate, has helped tighten the job market and could slow U.S. economic growth in coming years, economists say.

With the baby boomers starting to retire in 2008,how this all plays out will be very interesting.