POWER OF THE PURSE
Single women — who are postponing marriage or forgoing it altogether — are a growing economic force, accounting for a larger share of growth in the job market, homeownership, and college degrees. According to an analysis of federal data, the majority of women in the United States — a record 52%— were unmarried in 2021, a significant increase from just 7% in 1900. This shift reflects changing societal norms around marriage and work, empowering women to carve their own paths. However, a persistent wage gap continues to hinder many women, especially single mothers, from enjoying the same economic gains as single men and married couples. Never-married women earned just 92% of what never-married men did last year and possess 29% less wealth, according to Wells Fargo economists.
Women have made considerable progress in various facets of the economy in recent decades. The number of women attending and graduating from college has outpaced men for years, reflecting a shift in educational attainment. Despite lower wages, women are also more likely to buy their own homes. Nearly 11 million single women owned their homes in 2021, compared to 8 million single men, as per a recent analysis of census data by LendingTree. Moreover, women are increasingly living alone, whether they own or rent. Households headed by single women now make up 26% of U.S. households.
Households headed by single women now make up 26% of U.S. households.
This trend signifies a generational shift in attitudes towards marriage and independence. Many women today are not prioritizing marriage in their 20s, 30s, or even 40s, choosing instead to focus on their personal and financial autonomy. This independence is seen as liberating, allowing women to make their own decisions and shape their lives without relying on a marital partnership.
Historically, marriage has been a common household arrangement for women, often serving as a vehicle for higher earnings and wealth accumulation. While single men out-earn single women, married couples had nearly four times the median net worth of single individuals in 2019, according to the Federal Reserve. These discrepancies are concerning as more people delay marriage. The median age of first-time marriage for women has risen from 25 in 2001 to 28 in 2021.
Single women — whether divorced, separated, or never married — are more likely to be working than their married counterparts. The share of never-married women who are working or looking for work has risen nearly two percentage points in the past decade, even as the overall labor force participation rate has declined. However, their lower wages result in less spending power. Single women spent an average of $39,000 in 2021, compared with $41,000 for single men. Their spending patterns differ significantly, with women more likely to spend on essentials such as housing, healthcare, and education rather than on entertainment, travel, and dining out. This difference in spending can hinder women's ability to build a financial safety net or save for retirement, leaving many single women in a more financially fragile position than other segments of the population.
Single women are projected to grow at an annual rate of 1.2% from 2018 to 2030, compared to 0.8%for the overall U.S. population. This trend is driven by more women delaying marriage, choosing to stay single, or divorcing in their 50s and 60s. Additionally, women are delaying childbirth or having fewer children than in the past.
These shifting lifestyle norms are enabling more women, with or without children, to work full time, which should continue to raise the labor force participation rate among single females. Rising labor-force participation rates should put upward pressure on women’s wages and help increase overall consumer spending. As it stands, women already control a significant share of the U.S. consumer wallet. They contribute an estimated $7 trillion to the U.S. gross domestic product per year, according to the Center for American Progress, and are the principal shoppers in 72% of households, according to consumer surveys conducted by MRI-Simmons.
Many women today are not prioritizing marriage in their 20s, 30s, or even 40s, choosing instead to focus on their personal and financial autonomy.
Women are also earning bachelor's degrees at a higher rate than men and are the primary breadwinners for nearly 30%t of married households and nearly 40% of total U.S. households. This substantial contribution to household income highlights the growing influence of women in economic decisions. Whether single or married, women are a driving force in the economy, shifting spending profiles toward categories poised to benefit from the demographic growth in single women with rising incomes.
As single women continue to grow as an economic force, their impact on the economy will likely expand. Their increasing educational attainment, homeownership, and workforce participation contribute to their economic power, despite the persistent challenges of wage disparity and financial fragility. The evolving landscape of women's economic contributions underscores the importance of addressing these disparities to ensure that women can fully realize their potential and contribute even more significantly to economic growth.