WSJ What’s News – The State of Women in 2026: Progress, Pay Gaps and Participation

Host: Alex Osola
Guests: Harriet Tory (WSJ Economics Reporter), Matthew Nestler (Senior Economist, KPMG)
Date: March 15, 2026

Overview

This episode, in recognition of Women's History Month, explores the current state of American women in the workforce in 2026. Host Alex Osola is joined by economics reporter Harriet Tory and senior economist Matthew Nestler to discuss both the successes and persistent challenges women face. The discussion covers post-pandemic workforce trends, widening pay gaps, barriers to participation such as caregiving, and implications for the broader U.S. economy.

Key Discussion Points and Insights

1. Workforce Progress Since the Pandemic

• Women’s professional standing has improved: Higher rates of college education, increased representation in managerial and C-suite roles, and growing financial influence.
  • Quote: “Women now control about a third of all retail financial assets in the US and that's expected to rise to between 40 and 45% by 2030.” – Alex Osola (00:32)
• Despite gains, the ground is uneven: The pay gap has widened, childcare costs have climbed, and the rollback of DEI policies has slowed diverse appointments.

2. Pandemic’s Lasting Impact

• Caregiving as a Primary Strain
  • “Caregiving is really the answer to that question.” – Harriet Tory (02:25)
  • School closures and increased domestic burdens pushed many women (more than men) to exit the labor force temporarily.
• Remote Work: Double-Edged Sword
  • “There are many women out there who have profited from that and who have found a better work life balance... but certainly initially, it was really tough.” – Harriet Tory (02:25)
  • Greater remote work options have benefited educated women, but pullback to office-centric work is now reversing some gains.

3. Trends by Demographics and Industry

• Aggregate Numbers Mask Disparities
  • “We would expect [participation] to decline... If you look at women in prime working age… January actually hit an all time high in participation. But those aggregate figures can mask a lot of differences underneath the hood.” – Matthew Nestler (04:23)
• Impact Across Sectors
  • Gains for women in information and manufacturing, while healthcare and education have shown declines.
• Mothers of Young Children: A Unique Challenge
  • “Over the past couple of years… moms with young children under five, there's been a decline in employment, but also of participation.” – Matthew Nestler (05:18)
  • Distinct from previous economic crises: This time, fewer young mothers are even looking for jobs, not just unable to find them.

4. Barriers Keeping Women Out

• Cooling Labor Market
  • “The labor market is just not that great for everybody... harder if you're on the sidelines, to break back in.” – Harriet Tory (06:49)
• Structural Challenges: Childcare and Elder Care
  • The lack of accessible, affordable childcare and growing elder care responsibilities limit women's full participation—even among highly educated groups.

5. Widening Pay Gap

• Wider in 2025 Than in Nearly a Decade
  • “Women working full time made 81 cents on the dollar compared to men, which is the widest pay gap since 2016.” – Alex Osola (08:03)
• Return-to-Office Push as a Factor
  • “Many women that I spoke to... said, I can't do this. It's too hard with my kids or with my caregiving responsibilities... so they were quitting and taking a different job. And often that came with a pay cut.” – Harriet Tory (08:19)
• Personal Tradeoffs for Flexibility
  • Workers value flexibility enough to accept lower pay.

6. Broader Economic Implications

• Labor Supply Squeeze
  • “This is all happening within the context of two major trends. One, the aging population... two, the shift to a more restrictive immigration policy... every employer is likely to face some challenges attracting and retaining workers.” – Matthew Nestler (09:30)
• Women’s Employment as Economic Signal
  • Women's ability to work, shaped by family care demands, is now a central economic issue, not just a "women's" issue.

7. Summary Reflections: Where Do Women Stand in 2026?

• A Story of Divergence
  • “At the high level... employment shares are at or near all time highs. That is a success story... but that does mask a lot of differences among specific groups.” – Matthew Nestler (10:37)
• Education vs. Structural Hurdles
  • “American women are more educated than ever before. So in many ways women are in a very strong position... But there are certain structural issues that are just difficult and hard to overcome...” – Harriet Tory (11:02)
• Limited State Support Intensifies Challenges
  • The U.S. lacks the nationwide childcare infrastructure seen in Europe, leaving most families to bear costs alone.

Memorable Quotes & Key Timestamps

• “Caregiving is really the answer to that question.” – Harriet Tory, on why the pandemic forced many women out of work (02:25)
• “If you look at women in prime working age… January actually hit an all time high in participation. But those aggregate figures can mask a lot of differences underneath the hood.” – Matthew Nestler (04:23)
• “Over the past couple of years… moms with young children under five, there's been a decline in employment, but also of participation.” – Matthew Nestler (05:18)
• “Many women… said, I can't do this. It's too hard with my kids or with my caregiving responsibilities... so they were quitting and taking a different job. And often that came with a pay cut.” – Harriet Tory (08:19)
• “At the high level... employment shares are at or near all time highs. That is a success story... but... specific groups... really struggling right now.” – Matthew Nestler (10:37)
• “There are also some structural difficulties that make it hard to balance [success] with family life.” – Harriet Tory (11:02)

Notable Segments and Timestamps

• COVID’s Impact on Women’s Employment: 02:25 – 03:12
• Rise and Pullback of Remote Work: 03:20 – 04:23
• Prime Working Age Women - Data Overview: 04:23 – 05:07
• Mothers of Young Children - Labor Trends: 05:07 – 06:42
• Barriers to Workforce Participation: 06:42 – 07:30
• Pay Gap Widening: 08:03 – 09:21
• Broader Economic Stakes: 09:21 – 10:29
• State of American Women (Summary Reflections): 10:29 – 12:08

Summary

The episode paints a nuanced portrait of life for American women in 2026: highly educated, increasingly present in high-profile roles, but challenged by structural forces such as uneven caregiving burdens, inadequate childcare support, and the return to inflexible work schedules. While headline numbers look promising, many groups of women (particularly mothers and women of color) are strained, and the overall gender pay gap is widening. The experts underscore that enhancing women’s participation is critical not only for gender equality, but for the sustainability of the U.S. economy itself, given demographic and policy headwinds.