DATE August 1, 2002
FOR Challenger, Gray & Christmas, Inc.
For Release Upon Receipt
New Workplace Survey FOR WOMEN, DOWNSIZING PROVES THEY ARE GAINING
Wall Street's woes and the wave of corporate downsizing that has now claimed 2.7 million victims in 18 months is likely affecting more women than at any other time in history. And, that is a good thing, according to a new survey by international outplacement firm Challenger, Gray & Christmas, Inc.
Why? Because it is further evidence that more and more women are moving up the corporate ladder into roles that are, unfortunately, more vulnerable to job cutting in times of economic troubles.
The advancement and subsequent displacement of more women, as well as the fact that they are now contributing a hefty, 35 percent share to household income, may be leading to another significant trend: women relocating for new jobs with their employed spouses following -- which, according to workplace authority John A. Challenger, chief executive officer of Challenger, Gray & Christmas, has been on the rise in recent years.
"This is a dramatic reversal from just a few years ago when it was the men who were leading the way in relocation. As a result, a growing number of men are receiving a special type of job search assistance known as transplacement as they follow a relocating spouse," said Challenger, whose firm provides outplacement and transplacement counseling to discharged executives and managers.
Evidence of the shift toward more women leading the way in relocation can be seen in the latest data from the Census Bureau, which show a greater percentage of women householders moving with a trailing spouse.
The householder, according to the Census Bureau, refers to the head of the household or the person in whose name the housing unit is owned or rented. The person designated as the householder is the "reference person" to whom the relationship of all other household members, if any, is recorded.
While women represented a smaller percentage of householders, a larger percentage were movers. Of the 15.2 million female householders with a spouse, 12.5 percent or 1.9 million moved between March, 1999, and March, 2000. Among the 40 million male householders with a spouse, 10.5 percent moved.
Interestingly, there has been a 10 percent increase in the number of women householders. In 1999, the Census Bureau counted 13.8 million female householders. At the same time, the number of male householders fell from 41 million in 1999.
"Not only are more women moving to find new positions, but as more women move up the corporate ladder, they are increasingly viewed as the best person for the job and are more likely to be transferred by their employers, which is a common part of career advancement," said Challenger.
Helping to fuel women's gains in the workplace is the fact that they are outpacing men in earning college degrees. In the 2001-2002 graduating class, the Department of Education estimates that 698,000 women earned bachelor's degrees compared to just 529,000 men.
By the class of 2009-2010, the number of degrees awarded to women is expected to grow another 16 percent to 811,000, while their male counterparts will earn 562,000, just 6 percent more.
Women are also posting significant gains in terms of earning master's degrees in business. The number of women earning MBAs jumped from only 609 in 1968 to 44,714 in 2000, according to the latest available data from the Department of Education. Between 1990 and 2000, the number of women earning these advanced degrees climbed 71 percent. By comparison, men earning MBAs during the same period grew just 34 percent.
"As the pool of qualified women with bachelor's and master's degrees continues to grow by leaps and bounds, it only stands to reason that more of them will be moving up quickly into the managerial and executive ranks. However, with this added responsibility comes increased exposure to corporate downsizing," noted Challenger.
Indeed, the latest available Bureau of Labor Statistics data on displaced workers show that of the percentage of women losing their jobs has risen since 1994. In 2000, 47 percent of the 7.5 million workers who lost their jobs were women. That was up from 41 percent in 1994.
"Part of the reason we are seeing more relocation among women householders may be due to the fact that they are contributing a much greater share to household income. Now more than ever, when the wife loses her income because of job loss, it has a dramatic impact and it is therefore critical that she become reemployed quickly," Challenger observed.
There are a record 33.3 million married-couple families in which both the husband and wife earn incomes. That represents 60 percent of the country's 55.3 million married-couple families, according to the latest data from the Bureau of Labor Statistics.
The average income among married-couple families with two wage earners is $81,441, according to the BLS, and women contribute a growing percentage of that. Wives' contribution to family earnings, in households where the husband is employed, increased 13 percent between 1987 and 1999, going from 31 percent to 35 percent.
"That 35 percent figure is the national average. In households where the wife is a manager or executive, it is likely her contribution is closer to, if not more than, 50 percent.
"Even at 35 percent, that much household income lost assures that all efforts will be made to reestablish that income as soon as possible. Of course, finding a job quickly often means expanding one's job search to other geographic regions, thus increasing the likelihood of relocation," said Challenger.