Read our full analysis for a more in-depth look at these trends.
Where are women positioned in a “K-shaped” economy?
Women drove the 2025 labor market, but smaller raises and increasing pay disruptions exacerbate existing economic pressures.
March 2026
Key takeaways
- Women drove much of the labor force expansion in 2025, as hiring persisted in female-dominated sectors like private education and healthcare. This places women at the center of current labor market strength.
- The slowdown in job switching has sharply reduced the ability of workers to secure higher wages, according to Bank of America deposit account data. In January, the pay increase from a job-to-job change rate was less than half the 2019 average, and, while there is evidence of the gender pay gap narrowing, it’s in part because overall wage momentum has weakened.
- As affordability pressures rise and income growth moderates, women are leaning more heavily toward “value” spending. Women’s shift toward value has been strongest in apparel, reflecting how labor market pressures are spilling into household budgets.
Additional Materials:
Get the latest from Bank of America
Institute delivered right to your inbox.
