The Atlanta Fed's macroblog provides commentary and analysis on economic topics including monetary policy, macroeconomic developments, inflation, labor economics, and financial issues.
- BLS Handbook of Methods
- Bureau of Economic Analysis
- Bureau of Labor Statistics
- Congressional Budget Office
- Economic Data - FRED® II, St. Louis Fed
- Office of Management and Budget
- Statistics: Releases and Historical Data, Board of Governors
- U.S. Census Bureau Economic Programs
- White House Economic Statistics Briefing Room
March 26, 2019
Young Hispanic Women Investing More in Education: Good News for Labor Force Participation
In a recent recent macroblog post, my colleague John Robertson found that the recent rise in female prime-age (ages 25 to 54 years) labor force participation (LFP) over the last few years has been driven in large part by increased participation among Hispanic women. (Hispanic refers to people of Cuban, Mexican, Puerto Rican, South or Central American, or other Spanish culture or origin regardless of race.) Much of the LFP improvement among Hispanic women has come as they've shifted away from household duties.
To understand this development and determine whether it's a trend likely to continue, we look at trends in the activities of younger Hispanic women. In particular, we look at the so-called NEETs rate among women ages 16 to 24. The NEETs rate is the share of the youth population that is "Not Employed or pursing Education or Training." This group is sometimes referred to as "disconnected youth" or "opportunity youth" because they are generally less likely to be attached to the labor force as they move into their prime working years and are at higher risk of experiencing long-term unemployment, persistent poverty, poor health, and criminal behavior.
A look at the next chart shows substantial improvement in the NEETs rate among young Hispanic women over the last two decades. The gap has narrowed considerably and in recent years has tracked much more closely with black non-Hispanic women.
The declining NEETs rate for young Hispanic women primarily reflects shifting preferences toward more education and away from household responsibilities. As you can see in the next chart, the share of young Hispanic women who are in education or training has risen over the last two decades, up nearly 19 percentage points since 2000. Their share now more closely matches that of young black and white non-Hispanic women.
Mirroring the rise in educational activities has been a shrinking share of young Hispanic women who are not in the labor force because they are taking care of home or family, as the following chart shows.
Young Hispanic women have invested increased time in their education over the last two decades and as a result have higher average levels of educational attainment than earlier cohorts moving into their prime working years. To see this, the next chart shows the distribution of educational attainment over time for Hispanic women aged 25.
The higher levels of LFP in recent years among prime-age Hispanic women partly reflects the greater investment in education by younger Hispanic women. If this trend continues—and there is no obvious reason why it wouldn't—then it will help drive even higher labor force attachment for prime-age Hispanic women in the years to come.
- Young Hispanic Women Investing More in Education: Good News for Labor Force Participation
- A Different Type of Tax Reform
- X Factor: Hispanic Women Drive the Labor-Force Comeback
- Tariff Worries and U.S. Business Investment, Take Two
- Trends in Hispanic Labor Force Participation
- Quantitative Frightening?
- Are Employers Focusing More on Staff Retention?
- Defining Job Switchers in the Wage Growth Tracker
- Cryptocurrency and Central Bank E-Money
- Polarization through the Prism of the Wage Growth Tracker (Take Two)
- March 2019
- February 2019
- January 2019
- December 2018
- November 2018
- October 2018
- August 2018
- July 2018
- June 2018
- May 2018
- Business Cycles
- Business Inflation Expectations
- Capital and Investment
- Capital Markets
- Data Releases
- Economic conditions
- Economic Growth and Development
- Exchange Rates and the Dollar
- Fed Funds Futures
- Federal Debt and Deficits
- Federal Reserve and Monetary Policy
- Financial System
- Fiscal Policy
- Health Care
- Inflation Expectations
- Interest Rates
- Labor Markets
- Latin America/South America
- Monetary Policy
- Money Markets
- Real Estate
- Saving, Capital, and Investment
- Small Business
- Social Security
- This, That, and the Other
- Trade Deficit
- Wage Growth