Latinas exiting the workforce: how the pandemic revealed historic disadvantages and heightened economic hardship

As baby boomers retire in record numbers, Latinas are poised to transform the US labor force and catalyze economic growth. However, the pandemic has made clear that without considerable changes in job protection and safety-net programs, the economic potential of Latinas will be limited. The pandemic has made evident how Latinas struggle to look for work, find jobs, and remain employed because of sustained structural disadvantages. Hyper-segregation in low-paying jobs vulnerable to pandemic-induced shutdowns, like leisure and hospitality, paired with a lack of access to education and training opportunities that would allow them to move away from low-wage labor, caused disproportionate job losses for Latinas. On top of that, disproportionate family-care obligations combined with the lack of support for childcare and the closure of schools and daycare centers have forced Latinas to stop looking for work altogether and will prevent them from re-entering the labor force in the future, unless conditions significantly change.

In this report, we analyze the current state of Latinas in the US workforce, the impact of the pandemic on their employment opportunities, and the need for system-wide changes to unleash their potential. The report provides evidence that returning to what we previously considered to be 'normal' will not only leave millions of Latinas without access to real economic opportunity and social mobility but would harm the long-term competitiveness of the US labor force and economy. It also provides evidence that the Biden administration's proposed American Families Plan - which would remove many of the structural barriers that impede Latinas from rejoining the labor market by providing childcare support, mandatory family and parental leave, and other family-based measures - is necessary for the long-term health of the economy.

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