According to the Bureau of Labor Statistics (BLS), Idaho’s labor force increased by 13% and added over 100,000 participants in the five-year period from 2018-2023. Despite women making up only about 46% of Idaho’s current labor force, they accounted for 54% of its total growth over the last five years.

Women accounted for Idaho’s entire labor force growth in 2023 as the number of women in the labor force increased, while the total number of male participants actually declined, compared to 2022. Young adult women ages 25-34 currently make up around 6% of the 2022 statewide population and 11% of the labor force but contributed to 18% of Idaho’s total labor force growth in the five-year period from 2018-2023. [1]

Women in this age group in 2023 were primarily born throughout the 1990s. The oldest of this group reached adulthood just as the U.S. economy was spiraling into the great recession of 2007-2009 and job opportunities declined to dismal levels. The youngest of this age group may have experienced a few years of a well-functioning labor market in 2017-2019 with strong employer demand that was abruptly interrupted when the pandemic hit in 2020. Some potential highlights of why this demographic is being attracted to the labor force are outlined below but may be generally categorized into two major themes including an increased cost of living and ample opportunity to participate in wage employment.

Necessity to cover rising expenses

National inflation rates, as reported by the Consumer Price Index (CPI), were consistently mild and below 2% per year from 2013-2020. However, that situation changed drastically beginning with a 4.7% CPI increase in 2021 followed by an almost doubling of that level to 8% in 2022 and continued price pressures of a 4.1% increase in 2023. [2]

Although the pace of increase is slowing, the overall combined price level of regularly consumed goods and services is over 20%. This is higher in 2023 than average price levels experienced in 2018. The following three expenses, for the 25-34 age group account for two thirds of all expenditures, include housing (36% of total), transportation (18% of total) and food (13% of total). [3]

More than half of Idaho residents in this age bracket rent rather than own their homes and are more likely to be affected by significant increases in housing costs as opposed to if they had previously purchased their home and had an existing 30-year mortgage. The U.S. Census 2022 American Community Survey reports the median rental rate in Idaho increased 34% from $848 in 2018 to $1,138 in 2022, compared to a 23% average increase nationally. To simply maintain housing costs at or below 30% of total income would require close to $1,000 in additional monthly household income in 2022 ($3,800 a month) compared to 2018 ($2,800 a month).

Opportunity awaits in a tight labor market

The thriving job market of 2022 and 2023, combined with the rising costs of normal expenses, has potentially been a strong motivator for this age group of young adult women to participate in Idaho’s labor market at both higher levels and higher wage rates than in the recent past. Idaho’s average annual wages of $54,000 in 2022 ($26 an hour) were 26% higher than the $43,000 average of 2018 ($20 an hour) and had the 5th highest percentage change compared to other states over the time period. [4]

In addition to wage increases, the sheer number of job postings throughout Idaho has created a meaningful opportunity for employment and a higher need for workers than what the market is able to supply. With unemployment rates hovering under 3.5% since early 2022, some employers focused on increasing non-monetary benefits that weren’t previously available, such as scheduling flexibility, to stand out from the competition and attract talented labor.

Other considerations

In a 2023 research paper by the Brookings Institute, labor participation increased the most for women with young children under the age of five who are leaning toward being well educated, married or foreign born. [5] Women in Idaho have historically had higher labor force participation rates of 75-80% for ages 20-24 than the U.S. average of close to 70%. After this point, labor force participation levels for Idaho women increase overall and often peak for the 45-54 age group but drop in rank relative to other states. Idaho’s 2023 labor force participation rate for women ages 20-24 was the 10th highest in the nation at 77% but dropped to the 46th spot for women ages 25-34 at 73% (U.S. average 78%).

Despite nearly 40% of women in this demographic having at least a bachelor’s degree, Idaho consistently ranks in the top 10 states for the youngest average age mothers give birth to their first child. From 2012-2022, Idaho’s first-time mothers have given birth between the average age of 24.4 in 2012 (lowest) and 26.0 in 2022 (highest) [6]. According to the 2022 U.S. Census American Community Survey, approximately 30% of Idaho’s households included children under the age of 18, ranking Idaho as the 3rd highest state behind Utah (35%) and Texas (30%) and above the U.S. average of 26%. The presence of children in a household is certainly a factor that can affect the female labor force as they are most often the ones who take on a higher share of unpaid domestic responsibilities.

Part of the overall growth in this age group can be explained simply by the recent inflow of net migration and population demographics. Idaho ranks 6th by youngest median age at 37.9 years. Utah is ranked number one at 32.4 years. However, a tight labor market with high job openings and rising wage rates is certainly difficult to pass up, especially for an age group with a significant portion of earnings going toward basic living expenses.

Sources:
[2] BLS CPI Index
[3] BLS 2022 Consumer Expenditure Survey
[4] BLS Quarterly Census of Employment and Wages
[5] Brookings Institution, “Prime-Age Women are Going Above and Beyond in The Labor Market Recovery” August 2023
[6] CDC Natality 2007-2022

Lisa.Grigg@labor.idaho.gov, regional economist
Idaho Department of Labor
(208) 799-5000 ext. 3849

This Idaho Department of Labor project is 100% funded by USDOL as part of $695,785 in Workforce Information Grant funds from the Employment and Training Administration.