Women’s Equality Day: Women Fuel Economic Growth

August 26 marks Women’s Equality Day, commemorating the 1920 certification of the 19th Amendment, granting women the right to vote. Since that time women have made significant strides in many facets of public life — perhaps none more striking than in the labor market.

The labor force participation rate — a key indicator of economic health — measures the pool of potential workers available in the economy. This includes both people who are employed and actively looking for a job. A higher labor participation rate means more people are contributing to the economy, increasing the output of goods and services.

In 1950, the United States’ labor force participation rate was 59.2%, but by 2000 this figure had jumped to 67.1%. What led to this increase in the labor force participation rate? The rapid rise of women entering the labor market was a key contributor to the increase. During the same period, the share of women taking part in the workforce soared from 33.8% to 59.9%.

“Quiet Revolution” Accelerates Labor Market in the 1970s

Demand for office and clerical workers in the early 20th century gave rise to women's increased participation in the labor market. A “quiet revolution,” as described by Nobel prize-winning economist Claudia Goldin, accelerated in the 1970s as expectations around careers and family began to change. Young women increasingly anticipated and prepared for future careers, seeking the education and training that would qualify them for more skilled careers and positions.

The influx of women into the labor pool not only brought societal shifts, but it also improved the economy by increasing economic output, consumer spending, tax revenue, poverty reduction, and overall quality of life.

Women’s labor force participation peaked at 60% in 1999, followed by a decline in the early 2000s. It dipped further in the wake of the Great Recession from 2007-09 and again during the COVID-19 pandemic as both women and men dropped out of the workforce. While women’s employment was disproportionately impacted by the pandemic, women helped drive the labor market’s post-pandemic recovery, rebounding more quickly than men.

Today, women in Utah, Idaho and Wyoming are participating in the labor force at greater rates than the national average of 57.3%, according to the Bureau of Labor Statistics. In 2023, the labor force participation rate for women averaged:

• 62.2% in Utah
• 57.6% in Idaho
• 59.2% in Wyoming
  

Empowering Women for More Than 150 Years

Recognizing the value of economic inclusion, Zions Bank has empowered women since it was founded more than 150 years ago. When the bank first opened its doors in 1873, five of the first 15 depositors listed on the original ledger were women and another was an organization for women.

At a time when many financial institutions did not allow women to open their own accounts, Zions Bank’s by-laws stated: “All deposits made by minors or by married women shall be fully under their own control payable to them on their own receipt, without regard to any guardian or husband.”

By the 1890s, Zions Bank ran advertisements encouraging women to open savings accounts in their own names. These early customers contributed to the strength and stability of the bank, and by extension, the economy.

Today, Zions Bank continues to empower women through employment, sponsorships and community engagement.

Zions Bank is a founding sponsor of the nonprofit Utah Women’s Leadership Institute, dedicated to enhancing business and career opportunities for women. In addition, Zions partners with the Utah Women and Leadership Project at Utah State University to find community solutions to promote women’s equality.

Zions Bank also developed a “returnship” program with Talent Ready Utah, designed to help offer skill-building opportunities and support for women re-entering the workforce.

As part of its commitment to supporting small businesses, Zions Bank has helped increase access to capital for women-owned enterprises through the Small Business Diversity Banking Program, which also supports minority-, veteran- and LGBTQ-owned businesses.

Internally at Zions Bank, women employees are supported by a resource group called the Women’s Business Forum. This group helps women in their career development and provides monthly webinars on a variety of topics.

Zions offers a formal Mentor Program for up-and-coming employees who are paired with senior-level mentors to focus on specific growth areas. In the 2023 cohort, more than 61% of participants were women.

Because of its efforts to elevate women, Zions has been named among the State of Utah’s 100 Companies Championing Women and the Idaho Business Review’s Empowering Women honorees. And for six consecutive years, Zions Bancorporation has been included on the Women Tech Council’s “Shatter” list, showcasing technology companies that are creating and enacting practices and cultures that remove the glass ceiling. Zions Bank was also named among Forbes’ Best Employers for Diversity in 2023.

Women have been key drivers of economic growth in the intermountain west and nationally, contributing both paid and unpaid labor. As more women participate in the labor force, their talents, perspectives and skills will continue to propel innovation, productivity and economic growth. 

Robert Spendlove is the Economic and Public Policy Officer for Zions Bank.