Women hold more U.S. jobs than men—but still earn far less starting the day they graduate

For the first time in recent history, women now outnumber men in the workforce, though they still face a significant earnings gap. According to a study by the National Association of Colleges and Employers, women who earned a bachelor's degree in 2023 took home an average starting salary of $59,778, compared to men's $72,190. This means women earn approximately 83 cents for every dollar their male counterparts earn, even before their careers have begun.

This pay disparity has persisted for decades, with women taking home only 81 cents for every dollar men make throughout their careers, and the gap widens as they age. Women hold the majority of jobs in low-wage sectors such as education, nursing, and care work, which underpin monthly job reports. These fields, dominated by women, tend to pay less than male-dominated fields like finance, construction, and STEM.

Parenthood is the primary driver of this earnings gap, particularly as women age. Economist Claudia Goldin discovered that early-career pay gaps are relatively minor until a woman becomes a parent. After having a child, women's earnings decline and do not catch up to men's at the same rate, even when they share the same profession and level of education.

Men continue to be less involved in child-rearing, leading to women taking time off work to care for children, which stalls or halts their career progression. Post-pandemic, job creation has favored women, with women gaining over 870,000 jobs in the past 12 months while men lost nearly 1.5 million. However, this milestone may not necessarily be a positive story for women overall, as the data reveals a more complex picture of gender inequality in the workplace.