In the U.S. there are more single women working than at any other time in the past, and that’s having a direct impact on the economy. These women contribute nearly $7 trillion. It’s estimated that in the next decade, nearly half of all working women will be single. This is data according to the Bureau of Labor Statistics.
According to other research from Morgan Stanley, women have always been the bigger spenders in the average U.S. household. They even spend more money than married women, which is why this shift is important to note. Personal care, food, luxury items, footwear, and electric cars are all being boosted by this demographic.
Single women have more money to spend on themselves, where married women tend to be more family focused. They even spend more on personal care, like massages and making sure they look good. Currently, men are the largest buyers in the country when it comes to larger purchases, like cars. Women are certainly taking a larger piece of that pie for sure, giving car companies a massive boost.
Women Spend More on Basic Needs
Don’t let the first part of this article fool you. Women just don’t buy lipstick and yoga pants. They are also more likely to be heading low-income households. Single mothers who are low-income spend as much as 82% of their entire budget on necessities, according to a report from the Brookings Institute.
“Low-income households, which are more likely to be headed by women, spend 82% of their budget on basic needs like housing, food, transportation, health care and clothing,” said Lauren Bauer, fellow in economic studies at the Brookings Institution.
Housing usually takes up more of the budget, especially the less money you make. But women aren’t just staying at home. More women than ever are going back to college and getting degrees to have the opportunity to get better jobs. As millennials and the younger generations are putting off marriage, they have no choice but to focus on taking care of the bills.
80% of all single women in the country are working or looking for work. That’s going to force companies to make some decisions in the future.
“We have to talk about releasing the pressure on the household,” said Pam Jeffords, partner and diversity & inclusion leader at PwC. “This means for employers to think about care — both for children and parents — as a condition for employment rather than a benefit. Organizations need to stop assuming that there’s one kind of traditional family unit that needs one kind of support,” she said.
