Gender Trends in the Gen Z Workforce: Implications for Gender Parity and the Wage Gap

Image Description: The picture has a young man in focus who is wearing a dark yellow-brown turtleneck as he sits at a long table in a college classroom, looking down at various papers with a pen in his hand. Behind him, out of focus, are other classmates of various genders who appear to be talking amongst themselves from their seated positions in the rows of long tables in the college classroom.

By Marion Davis

As of 2024, an emerging trend was highlighted in a Bloomberg News analysis of government data. This in-depth review noted that Gen Z female college graduates are persisting in the job market and taking on lower-paying or part-time roles while Gen Z male college graduates are holding out for better opportunities. This could have significant implications for future gender parity and the gender wage gap. While this trend currently correlates with higher labor force participation rates for women, it may also reinforce gender-based income disparities if women continue to accept jobs for which they are overqualified. To achieve true gender parity, efforts must focus on ensuring that both Gen Z women and men have equal access to opportunities that match their qualifications and aspirations.

Gen Z Women: Persistence and Its Implications

Persistence in the Job Market

Gen Z women have demonstrated remarkable persistence in the challenging 2024 job market. This commitment is reflected in their higher labor force participation rates compared to their male counterparts. Historically, women have shown resilience and adaptability, often taking on multiple roles or accepting positions below their qualification level to remain employed. Recent data shows that women’s wage growth has been surpassing men’s, a promising sign of progress. However, this increase in wage growth is from a lower baseline as women are often overrepresented in low-wage jobs.

Labor Force Participation and Overqualification

Along with their higher workforce participation rates, Gen Z women are frequently employed in roles for which they are overqualified. This phenomenon may be linked to women’s tendency to job-hop more frequently than men, a trend that has been true and rising in prevalence since the 1980s. This increased job mobility is driven by a desire for better work-life balance and continuous learning. Women often seek employers that offer flexible schedules and typically advance in their career prospects with more flexible schedules. However, this tendency to accept positions below their qualification level may mask underlying issues of underemployment and wage disparity.

The Risk of Reinforcing Gender-Based Income Disparities

Women’s wages, while growing faster than men’s in recent years, are still primarily in low-wage sectors. Historical data from recessions, such as the 2008 Great Financial Crisis, show that men in male-dominated industries were more likely to stay out of the workforce during economic downturns, rather than retrain for roles in historically female-dominated fields like healthcare. 

Bloomberg’s interview with a sociologist revealed that women’s resourcefulness in tough job markets often leads them to accept lower-paying jobs or internships. In contrast, men might feel societal pressure to avoid positions perceived as lower status. This societal expectation can impact long-term career trajectories and reinforce gender-based income disparities. The question arises here of whether the men are taking the wiser approach in some situations by sitting out of the workforce as women’s efforts to work in a national culture lagging behind in support of mothers can potentially lead to greater debt due to childcare, commuting to an unpaid position, and so on. Ideally, the desire to work and to achieve upward economic mobility would be supported rather than implicitly discouraged. 

Pandemic-Exacerbated Childcare Crisis

The COVID-19 pandemic highlighted the critical role of childcare in workforce participation. During the early months of the pandemic, women’s resourcefulness within the job market was hampered by an immovable barrier. With a pandemic-exacerbated childcare crisis, women as more likely to be primary caregivers faced problems with the closure of childcare programs as well as increasing costs related to childcare. While some government subsidies did aid in childcare costs, childcare continues to be an issue as many mothers cannot afford childcare but cannot afford not to work. Data adjusted for 2022 highlighted that the cost of childcare per child currently was between $5,357 and $17,171 which was equivalent to between eight percent and slightly more than 19 percent of the median family income in the US.

Balancing Low-Wage Work, Internships, and Childcare

Gen Z female college graduates’ willingness to accept low-wage work or unpaid internships as a stepping stone to better opportunities can be both advantageous and detrimental. While this strategy may provide valuable experience, it often requires women to take on additional financial burdens, such as personal debt or second jobs to cover childcare costs. Cost aside, simply finding compatible childcare that aligns with work schedules is challenging. Unpaid internships are associated with lower chances of receiving a job offer than paid internships and may exacerbate financial strain. In fact, one source notes that paid internships are 32 percent more likely to lead to full-time jobs than unpaid internships. Additionally, more competitive unpaid internships that do provide value in making connections are often only accessible to those who have financial support from family members. Thus, enforcing payment for internships would help level the playing field for more competitive internships that do offer non-financial value already and would reduce the burden of predatory internships that do not offer any financial value and simply attempt to obtain free labor. 

Gen Z Men: Holding Out for Better Opportunities

Societal Expectations and Job Market Behavior

Gen Z men face societal pressures to secure high-status, well-paying jobs. This pressure may lead them to wait for ideal job opportunities rather than accepting positions that do not meet their expectations. This reluctance can result in prolonged unemployment or underemployment, potentially hindering career progression. At the same time, researchers can examine the financial status of these young men to better understand how labor participation–or lack thereof–impacts employees. As more and more Gen Z male college graduates live with their parents without caregiving duties compared to their Gen Z female counterparts, research can explore the impact of sitting out of the workforce on their mental and physical health and financial situation. It is a telling situation if involvement in the workforce is causing greater debt and stress than lack of participation in the workforce. A willingness to participate in the workforce is a valuable feature that the US should strive to support rather than penalize. At the same time, a lack of willingness to participate in the workforce should also be explored to determine root causes. 

The Challenge of Maintaining Gender Parity

The tendency of Gen Z male college graduates to hold out for better opportunities can impact gender parity in the workforce. By not accepting lower-paying or non-traditional roles, men may contribute to a gender imbalance in certain sectors. Promoting flexibility and adaptability in career choices is crucial to maintaining gender parity and ensuring that all individuals have access to diverse career paths.

The Intersection of Gender, Internships, and Underemployment

The Role of Internships in Reducing Underemployment

Internships play a crucial role in reducing underemployment rates across all genders. A Burning Glass Institute report highlighted that graduates with at least one internship are 48.5% less likely to experience underemployment. However, the benefits of internships depend on various factors, including the relevance of the internship to the graduate’s degree, the quality of the internship experience, and whether the internship is paid or unpaid.

Disparity in Internship Opportunities

The National Association of Colleges and Employers (NACE) data shows that women and people of color are often overrepresented in unpaid internships. These unpaid roles, while providing some job opportunities, do not offer the same benefits as paid internships as far as immediate financial resources and being more well-established in a chosen career field. Paid internships are more likely to lead to job offers and higher salaries, making them a more effective means of career advancement.

Implications for Gender Wage Gap and Career Advancement

The reliance on unpaid internships can perpetuate income disparities. When taking on unpaid internships, women especially may face additional challenges, such as financial strain and increased childcare challenges. These factors can negatively impact career prospects as well as their health and the health of their family. To address these issues, local governments or the federal government can increase access to paid internships by providing incentives to corporations and by targeting predatory unpaid internships that do not offer value.

Strategies to Support Gender Parity in the Workforce

Empowering Gen Z Women for Career Success

1. Promote Equitable Job Opportunities: Encourage employers to match women with roles that align with their qualifications and offer clear pathways for career advancement.

2. Expand Access to Paid Internships: Advocate for more paid internships to ensure women gain relevant experience without financial strain.

3. Mentorship and Career Development: Implement programs to help women navigate career progression, negotiate salaries, and enter leadership roles.

Supporting Gen Z Men in Navigating the Job Market

1. Challenge Societal Norms: Address societal pressures on men to secure high-status jobs, promoting a more flexible approach to career building.

2. Encourage Broader Career Exploration: Expose men to diverse career paths, emphasizing the value of varied work experiences.

3. Promote Acceptance of Diverse Job Roles: Highlight the benefits of accepting jobs outside one’s degree field as a strategic move for career growth.

Final Thoughts

An analysis of gender trends in the Gen Z workforce shines light on the need for targeted strategies to address emerging gender-based disparities in workforce participation in the United States. By promoting equitable job opportunities, expanding access to paid internships, and challenging societal norms, we can support both Gen Z women and men in achieving their full potential. Closing the gender wage gap and promoting gender parity in the labor market requires continued research and policy development to create a balanced and equitable workforce.

Marion Davis is a contributing writer at EmployDiversityNetwork.com. She is a disabled DEIA consultant and writes on the value of diversity and inclusion across multiple industries, specifically as relates to disability and intersectionality.