North Carolina Women Make Economic Gains, But Disparities Persist

The NC Department of Administration’s Council for Women and Youth Involvement today released the sixth report in the state’s Status of Women in North Carolina series that analyzes key issues impacting women. The new report, Investing in Economic Opportunity for Women in North Carolina, examines disparities in access to childcare and barriers to economic security among North Carolina women and recommends policy and programmatic changes to drive better outcomes for women and families across the state.

“When women succeed, families succeed. And when families are stronger, our communities are stronger,” said Governor Josh Stein. “North Carolina has made notable progress in closing the gender wage gap, but we must continue to address disparities and find solutions that expand economic opportunity for every North Carolinian.”

The Institute for Women’s Policy Research (IWPR) analyzed data from North Carolina and seven other Southeastern states: Florida, Georgia, Kentucky, South Carolina, Tennessee, Virginia and West Virginia. The report examines key childcare and labor market labor market indicators by race and ethnicity to offer a full understanding of the economic and workforce disparities by gender and race that persist.

Key findings outlined in the report include:

• Wage Gap Improvement: Data shows that from 2016 to 2023, the gender wage gap in the state narrowed from 80.9% to 83.4%, raising North Carolina from 31st to 9th place nationally.
• Lower Labor Force Participation: While 68.9% of mothers with young children participate in the labor force, fathers' participation is significantly higher at 93.8%.
• High Childcare Costs: North Carolina ranks third highest in childcare costs among the eight Southeastern states analyzed, posing a significant cost burden, especially for Latina and Native American women.
• Preschool Enrollment Lagging: North Carolina ranks lowest among the Southeastern states in preschool enrollment for three-year-olds (7%) and well below the national average (17%). The state also ranks second lowest among the eight states analyzed for four-year-old enrollment (30%).

“We share this report on Women’s Equality Day which commemorates the passage of the 19th Amendment, to spotlight the disparities that still impact women and families across our state and the continued fight for their rights,” said NC Department of Administration Secretary Gabriel J. Esparza. “It is our hope that data and recommendations from this report will spark action to improve the inequities impacting the millions of North Carolina women and families.”

Earnings disparities highlighted not only the significant pay gap between men and women but stark differences among women depending on race and ethnicity. For example, women in North Carolina earn a median annual income of $46,856 compared to $56,000 for men. But Latina women earn just 54 cents for every dollar earned by White men, while women in the category of Asian American Native Hawaiian and Pacific Islander earned 94.2 cents. The study also found that more women are among the working poor and are less likely to be self-employed compared to men.

Pay inequities also pose challenges for women and families seeking access to childcare and early education. Childcare costs are a barrier to many women wanting to participate in the labor force with average costs ranging from $9,617 a year for full-time infant home-based care to $12,251 for full-time infant center-based care.

The report outlines nine recommendations across three areas to reduce gender inequities and advance economic opportunities for North Carolina women.

• Expand access to paid family and medical leave, childcare and early education
• Support pay equity, livable wages and better workplaces
• Invest in women’s education, career pathways, and small business ownership

“Today’s findings reflect the disparities and discrimination women in North Carolina and across the country continue to face, especially women of color,” said Jesseca Boyer, Vice President for Policy and Strategic Initiatives at IWPR. “It is more important than ever that data capturing this reality is available to support efforts to advance women’s economic equality and well-being. IWPR’s State Policy Action Lab, launched earlier this summer, makes it possible to see where women have made progress in North Carolina, how the state compares to its neighbors, and which policy solutions can affect real change.”

Read the Investing in Economic Opportunity for Women in North Carolina report.

To view other Status of Women publications, visit the NC Council for Women and Youth Involvement website.

Read the Women’s Equality Day Proclamation.

About NCDOA and the NC Council for Women and Youth Involvement
The NC Department of Administration acts as the business manager for North Carolina state government. Under the leadership of Secretary Gabriel J. Esparza, the department oversees government operations and advocacy programs. The department's advocacy programs help to promote and assist diverse segments of the state's population that have been traditionally underserved. The North Carolina Council for Women and Youth Involvement is a division of NCDOA. Their mission is to advise the governor, state legislators and state leaders on issues impacting women and youth.

About IWPR
The Institute for Women’s Policy Research (IWPR) is a 501(c)(3) tax-exempt organization that conducts and communicates research to inspire public dialogue, shape policy, and improve the lives and opportunities of women of diverse backgrounds, circumstances, and experiences. IWPR builds evidence to shape policies that grow women’s power and influence, close inequality gaps, and improve the economic well-being of families.