After decades of slow but steady progress, the gender pay gap is widening again, reversing years of progress. According to data from the U.S. Department of Labor, women working full-time in the fourth quarter of 2024 earned just 83 cents for every dollar earned by men. The latest Census Bureau data paints an even starker picture: women earned just 80.9 cents for every dollar men made in 2024, the lowest ratio since 2016.
American women are falling further behind while costs for groceries, gas and health care soar. And the gap is even worse for women of color. The American Association of University Women reports Latinas working full-time, year-round were paid 58 cents on the dollar. Black women earned 65 cents for full-time work, but 63 cents overall. White women received 77 cents full-time, and 73 cents overall.
Several causes are contributing to the decline in women’s pay. The availability and cost of childcare is a major barrier. Rising childcare expenses have resulted in women reducing work hours or leaving the workforce altogether. Mothers and caregivers especially may be unavailable to work overtime.
Women were hardest hit by pandemic layoffs and closures. Return to work mandates have disproportionately affected women, especially mothers. Many have had to leave higher-paying jobs in exchange for flexibility.
Women are concentrated in lower-paying fields like health care, education and administrative support. Even If both men and women are doing the same work, pay disparities persist. For example, according to the Institute for Women’s Policy Research, female credit counselors and loan officers earn just 53.9% of what their male counterparts make.
U.S. Census data shows the gender wage gap persists in every occupation, even if women make up the majority of the workers. In elementary education and social work, for example, the small portion of men who hold these degrees typically earn more than women with the same degrees.
Interestingly, advanced education does not solve the pay gap. In fact, the higher-paying the field is, the greater the pay difference.
The pay gap has long-range and far-reaching consequences for women. There is no gender equity without pay equity. The gender pay gap is more than a statistic, it is a measure of economic justice. It affects a woman’s ability to build wealth, support families and retire securely. Over a lifetime, the gap can cost women hundreds of thousands of dollars. For women of color and mothers, the impact is even more severe.
There are several potential solutions, beginning with expanding access to affordable childcare and paid family leave. It is important to enforce pay transparency laws and strengthen anti-discrimination practices. Employers can support flexible work hours without penalizing caregivers. Women can consider job-sharing. Educational institutions could offer both young men and women programs on financial planning and how to invest. Training could focus on women’s leadership and career advancement, especially in high-paying industries.
The American Association of University Women, in addition to providing scholarships for women, has developed three award-winning programs specifically designed to address pay gap challenges. These programs have already impacted over 190,000 women across the US, empowering them with confidence, knowledge and skills.
Work Smart is an AAUW training program for early and mid-career professionals on negotiating for fair salaries, better benefits, and advancement opportunities.
Start Smart is an AAUW training program specifically designed for college women entering the job market, teaching effective salary negotiation techniques to boost confidence and negotiation skills.
Money Smart is another AAUW training program aimed at providing all women with the personal finance information they need to ensure their own financial security.
The widening gender pay gap in 2025 is a wake-up call. Despite decades of advocacy and reform, systemic barriers continue to limit women’s earning potential. Addressing this issue requires bold policy action, workplace reform. and a renewed commitment to equity. Without it, the promise of equal pay for equal work will remain out of reach.
Editor’s note: Women’s Watch is a cooperative writing effort of the local chapters of the American Association of University Women, the League of Women Voters and the National Organization for Women. This piece was authored by Bonnie Boyce-Wilson, a retired social worker from Sun City West. Please submit comments at yourvalley.net/letters or email them to AzOpinions@iniusa.org. We are committed to publishing a wide variety of reader opinions, as long as they meet our Civility Guidelines.
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