Number Of Single Working Women Is At Record Highs - And That's Changing The US Economy

Dec 30, 2019 by apost team

More and more women are joining the workforce, with today's numbers being at record highs. 

But what does that mean for the US economy?

According to CNN Business, $7 trillion of America's economy is owed to working women who are contributing to record numbers. In fact, nearly half of working females ranging in ages from 25 to 44 will be single in the U.S. According to Morgan Stanley's study of data from the reputable Bureau of Labor Statistics, this is going to be the group's largest share ever. In other words, there are more single women comprising the workforce than in previous years.

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Single women comprised 41% of working females within that age range, in 2018. Women have typically tended to act as the primary shoppers for American households. Surprisingly, single women tend to outspend those who are married, according to Morgan Stanley's research.

There are some winning sectors that could really benefit from this shift in spending and working demographics. Electric vehicles, luxury, food, personal care, footwear, and apparel are the most likely candidates to see a boost as more single women begin to spend more, according to Morgan Stanley. Within the realm of apparel, Nike and Lululemon Athletica are poised to perform well even considering the older population that is weighing this sector down.

Single individuals, especially females, tend to spend more on personal care when compared with their married counterparts. Morgan Stanley reports that Ulta Beauty and Sephora-parent might benefit from this trend. Starbucks, Chipotle Mexican Grill, and other quick and causal restaurants could benefit from society's shift away from the traditional model of family.

Another prediction made by the bank is that women are going to purchase more cars in the coming years than they currently do. At the moment, women are out-purchased by men, per-unit, when it comes to cars. However, Morgan Stanley expects this gender split to even out over time, resulting in a large boost for many dealers. Tesla is the bank's favored brand to benefit.

It's important to remember that single women who hold a full-time position don't just purchase yoga pants, cars, and lipsticks. According to Lauren Bauer, who works at the Brookings Institution, low-income houses tend to spend a vast majority of their budget on essentials such as clothing, healthcare, transportation, food, and housing. And women tend to head these low-income households.

This percentage is significantly less when compared with middle-income households. The portion of income put towards essentials is less since there is more disposable income. This information comes out of The Hamilton Project released by the Brookings Institute. Although housing eats up a majority of spending for all income groups, low-income households take an especially hard hit in this area. Transportation and food comprise the next largest costs.

Since women tend to wait to have children, marry later in life, and receive bachelor's degrees, the number of single women is expected to rise in the workforce. Bauer states that a whopping 80% of single females aged 25 to 54 are currently seeking employment or working. 

If you thought this piece was interesting, show it to someone who's interested in the inner-workings of the economy.