This file was prepared for electronic distribution by the inforM staff. Questions or comments should be directed to inform-editor@umail.umd.edu. Facts On Working Women U.S. Department of Labor Women's Bureau No. 89-4 December 1989 WOMEN IN MANAGEMENT Although more women hold management positions than at any other time, few have made the breakthrough to top-level executive positions. Estimates suggest that only 1 or 2 percent of senior executive level officials are women. In 1988 women in the United States represented 39.3 percent of all persons employed in those occupations-an increase from 26.5 percent in 1978 (see chart 1). Despite these significant gains, women are still underrepresented in managerial occupations when compared with their overall share of the civilian labor force (45.0 percent). Chart 1 Women In Managerial, Executive, and Administrative Occupations Percent Percent Year Women Men -------------------------------- 1978 26 74 1988 39 61 _______ Source: Women's Bureau, from data provided by the Bureau of Labor Statistics, U.S. Department of Labor TABLE I Women in Executive, Administrative, and Managerial Occupations 1978, 1983, and 1988 Annual Averages (16 years of age and over) Women as Percent of ----------------------------------- Women Managers Total Total as Percent Persons Civilian of all Number in Managment Labor Employed Year (in thousands) Occupations Force Women 1988 5,590 39.3 45.0 10.8 1983 3,490 32.4 43.5 7.9 1978 2,495 26.5 41.7 6.3 Nearly 5.6 million women were employed as executives, administrators, and managers in the United States in 1988. These women constitute more than double the number a decade ago in 1978 (2.5 million). Women managers now represent 10.8 percent of all employed women, up from 6.3 percent 10 years ago. Among employed men, 13.6 percent were executives, administrators, and managers in 1988, increasing from 12.2 percent in 1978. In 1986 a survey was conducted of corporate women officers employed by Fortune 1000 organizations.(1) Of the 412 women who comprised the selected population, 52.4 percent responded. Although none of the respondents had reached the top rung of the management ladder (chairperson, vice chairperson, or president), 4 of 5 were at the vice presidential level or above (executive vice president, senior vice president, group vice president, vice president, or assistant vice president) compared with only 1 of 3 at that level in 1980. In addition, 26.4 percent of these executives held directorships or board seats in 1986 in organizations other than their own while only 3.2 percent were directors of their own companies. Most women who were employed as executives, administrators, and managers in March 1988 were married with spouse present (60.1 percent). Another 18.4 percent had never married while 14.5 percent were divorced, 3.7 percent were widowed, and 3.2 percent were married, but with spouse absent (separated). Male executives, administrators, and managers were more likely to be married with spouse present (75.3 percent), with an additional 14.5 percent having never married, 6.8 percent divorced, 2.7 percent separated, and 0.7 percent widowed. Most women managers were middle aged. Of the 5.4 million women employed as executives, administrators, and managers in March 1988, 2.2 million (40.6 percent) were between the ages of 16 and 34, and 3.2 million (59.4 percent) were age 35 and over. Federal Employment As of September 30, 1988, women held 897,099 or 42.2 percent of the 2,125,148 nonpostal Executive Branch Federal civilian jobs. Women occupied nearly one-third (30.8 percent) of professional and more than one-third (37.1 percent) of nonclerical administrative occupations. Of the 9,181 executives in the Federal civilian work force, 845 (9.2 percent) were women, including 72 black women (0.8 percent), 23 Hispanic women (0.3 percent), 11 Asian or Pacific Islander women (0.1 percent) and 2 American Indian or Alaska Native women. (These executives include GS and equivalent Grades 16 through 18, the Senior Executive Service, and Executive-Level Appointees.) Of the 8,867 executives in the Federal civilian work force 2 years earlier, 710 (8 percent) were women, including 57 black women, 18 Hispanic women, 8 Asian or Pacific Islander women, and 1 American Indian or Alaska Native woman. Occupations Women are more likely to be managers in areas where there are already more women employees at lower levels. For example, women are 61.3 percent of managers in medicine and health, 49.2 percent of personnel and labor relations managers, and 48.9 percent of administrators in education and related fields (see Table II). On the other hand, women are only 17.9 percent of administrators, protective services, and only 24.2 percent of purchasing managers. Among management-related occupations, women were, for example, 59.0 percent of personnel, training, and labor relations specialists but only 5.0 percent of construction inspectors and only a miniscule proportion of purchasing agents and buyers, farm products. TABLE II Persons Employed as Executives, Administrators, and Managers, by Detailed Occupations 1988 Annual Averages (in thousands) Total Total Women persons women as percent employed employed of total ------------------------------ Total, 16 years and over 114,968 51,696 45.0 EXECUTIVE, ADMINISTRATIVE & MANAGERIAL 14,216 5,590 39.3 Legislative, Chief Executives, and General Administrators, Public Administration 34 12 * Officials and Administrators, Public Administration 472 210 44.5 Administrators, Protective Services 56 10 17.9 Financial Managers 502 213 42.4 Personnel and Labor Relations Managers 130 64 49.2 Purchasing Managers 99 24 24.2 Managers, Marketing, Advertising and Public Relations 482 154 32.0 Administrators, Education and Related Fields 562 275 48.9 Managers, Medicine and Health 163 100 61.3 Managers, Properties and Real Estate 433 194 44.8 Postmasters and Mail Superintendents 38 16 42.1 Funeral Directors 40 5 12.5 Managers and Administrators N.E.C. 7,434 2,405 32.4 Management-Related Occupations 3,772 1,909 50.6 - Accountants and Auditors 1,329 659 49.6 - Underwriters and Other Financial Officers 741 375 50.6 - Management Analysts 199 66 33.2 - Personnel, Training & Labor Relations Specialists 390 230 59.0 - Purchasing Agents and Buyers Farm Products 12 0 * - Buyers, Wholesale & Retail Trade, Except Farm Products 233 117 50.2 - Purchasing Agents and Buyers N.E.C. 241 103 42.7 - Business and Promotion Agents 25 11 * - Construction Inspectors 60 3 5.0 - Inspectors and Compliance Officers, not Construction 194 52 26.8 - Management Related Occupations N.E.C. 348 292 83.0 * Percentage not shown where base is less than 35,000. Note: N.E.C.: Not Elsewhere Cited. Industries The largest numbers of women managers (2.1 million) were employed in the services industries, i.e., business and repair services, personal services (including private household), entertainment and recreation services, professional and related services, and forestry and fisheries--an increase from 1.8 million in 1983. They represented 37.8 percent of all employed women managers (see Table III). Among these workers were 1.3 million women managers in professional services, the largest single group. The next largest numbers of women managers were in finance, insurance and real estate (1.0 million) and retail trade (698,000), representing 18.1 percent and 12.5 percent, respectively, of employed women managers. The smallest numbers of women managers (23,000) were in agriculture, followed by mining where 28,000 women were employed. TABLE III Women Employed as Executives, Administrators, and Managers, by Industry 1988 Annual Averages Employed Percent of Women Women as Employed Managers Percent Women (in thousands) of Total Managers Industry ------------------------------------ --------- Total 5590 39.3 100.0 Agriculture 23 * * Mining 28 * * Construction 129 12.9 2.3 Manufacturing 647 26.3 11.6 Durable Goods 365 24.3 6.5 Nondurable Goods 282 29.4 5.0 Transportation and Public Utilities 274 29.9 4.9 Wholesale and Retail Trade 865 42.5 15.5 Wholesale Trade 167 32.5 3.0 Retail Trade 698 45.9 12.5 Finance, Insurance, and Real Estate 1,014 50.7 18.1 Services* * 2,114 47.4 37.8 Professional Services 1,336 54.7 23.9 Public Administration 496 42.8 8.9 * Percentage not shown where base is less than 35,000. ** Includes business and repair services; personal services, except private household; entertainment and recreation services; professional and related services; and forestry and fisheries. RACE AND ETHNIC GROUPS The proportion of employed black women who are in management has edged up slightly in recent years. Some 7.0 percent of employed black women were in executive, administrative, and managerial jobs--an increase from 6.4 percent in 1987 and 4.9 percent in 1983. The largest proportion of black women in management is in government service, mainly in management related occupations rather than line executives and administrators. TABLE IV Black Women in Management, Executive, and Administrative Occupations, as a Percent of all Employed Black Women Year Percent ---- ------- 1988 7.0 1987 6.4 1986 6.0 1985 5.8 1984 5.2 1983 4-9 Black women represented only 2.9 percent of all employed managers, up from 2.7 percent in 1987, and their progress has been significantly slower than for all women similarly employed. The 407,000 black women employed in those occupations in 1988 included 167,000 in management-related jobs with 64,000 in accounting and auditing. About 29,000 black women were administrators in education and related fields, and 28,000 were officials and administrators in public administration. The remaining black women managers were in other executive, administrative, and managerial jobs. The proportion of employed Hispanic women who were managers also increased in 1988 to 6.7 percent, up from 6.6 percent in 1987 and 5.9 percent in 1986. Women of Hispanic origin, however, represented only 1.6 percent of all employed managers in 1988, edging slightly upward from 1.5 percent in 1987. About 221,000 women of Hispanic origin worked as executives, administrators, and managers in 1988, including 79,000 in management-related occupations; 11,000 in public administration; 9,000 in financial management; and the remainder in other executive, administrative, and managerial occupations. Similar to the trend among all women managers, the largest numbers of black women managers were concentrated in the services industries and in finance, insurance and real estate. The next largest numbers were in transportation and public utilities and in retail trade. The largest numbers of Hispanic, Asian American, and American Indian women managers were in finance, insurance and real estate, followed by the services industries and retail trade. Minority race and ethnic group women are still a very small proportion of corporate officers. The distribution by race/ethnic group of corporate women officers employed in Fortune 1000 organizations who responded to a survey in 1986, was as follows (response rate--52.4 percent of women surveyed). (See Chart 2.) (2) Chart 2 Women Corporate Officers 1986 Race Percent ---- ------- White 96.7 Asian 1.9 Black 0.9 Native American 0.5 _______ Source: Women's Bureau, from data provided by Heidrick and Struggles, Inc. The dearth of women in top-level executive jobs is reflected in the lower earnings of women managers as compared with men in management. Women employed as executives, administrators, and managers who worked year round full time had median earnings of $21,874 in 1987--only 60.5 percent of the $36,155 median earned by men similarly employed. The 1987 ratio of the median annual earnings of all fully employed women compared with men similarly employed was 65.0 percent. The earnings differential between women and men in management should improve as women continue to move up the corporate ladder and as women make further gains in education and training. During the 1985-86 academic year, 20,794 women earned master of arts degrees in business and management, representing 31 percent of total recipients. This is a significant increase from the 1,045 M.B.A. degrees awarded to women (about 4 percent of all such degrees) in the 1970-71 school year, just prior to the 1972 enactment of Title IX of the Education Amendments, which opened business schools to women who had largely been excluded or dissuaded from enrolling before that time. Growth in the number of managerial and management-related jobs through the year 2000 should provide increased employment opportunities for women who are prepared. It is projected that between 1986 and the year 2000, employment of executive, administrative, and managerial workers will grow by more than 3 million jobs, an increase of 29 percent--well above average growth for all jobs (19 percent). Women are well situated to move into the topmost positions in private business and government leadership. The outlook for women in management also should be enhanced as organizational structure, employment and promotion practices, and organization culture continue to improve in ways which will increase women's career advancement. For example, to encourage Government contractors to increase their efforts to place women and minorities at every step of the corporate ladder, in 1988 the U.S. Department of Labor published a directive emphasizing affirmative action for high-level corporate positions. Significantly altering the way corporations track managers for affirmative action purposes, the directive requires corporations with numerous establishments to list in their corporate headquarters Affirmative Action Program (AAP) all positions filled by decision-makers at that level. This is in contrast to the previous practice of listing such positions only in individual establishment AAPs. NOTES: (1) "The Corporate Woman Officer", Heidrick and Struggles, Inc., 1986, 125 South Wacker Drive, Suite 2800, Chicago, Illinois 60646-4590. (2) Ibid. ________ Sources: Bureau of Labor Statistics, and Office of Federal Contract Compliance Programs, U.S. Department of Labor; U.S. Department of Commerce; U.S. Equal Employment Opportunity Commission; and U.S. Office of Personnel Management. The Voice of Working Women for 70 Years 1920-1990 US GOVERNMENT PRINTING OFFICE: 1990 - 262-289 - 814/26153