An Update on the Gender Pay Gap in the United States

A new report from the American Association of University Women (AAUW) has examined the state of women’s pay equity in the United States, revealing insights into how the gender pay gap differs based on various demographic factors.

As of 2024, women working full-time earn 81 cents for every one dollar earned by men. Over a 40-year career, this gap equates to $542,800 in lost wages for full-time working women. Among all workers — including full-time, part-time, and seasonal employees — the gap widens to 76 cents per dollar.

Notably, the gender pay gap among full-time workers has increased in recent years, growing from 17 percent in 2023 to 19 percent in 2024. During this time, women’s full-time wages stalled, while men’s full-time wages rose by 3.7 percent. Furthermore, women’s full-time employment did not change significantly, while men’s fell by 0.6 percent. Despite rapid progress in women’s pay equity in the 1980s and early 2000s, the gender pay gap has hovered around 80 cents over the past two decades.

For some women of color, lost wages are even more severe. Among full-time workers, Native American women earn 58 cents, Native Hawaiian and Pacific Islander women earn 67 cents, Hispanic and Latina women earn 58 cents, and Black women earn 65 cents for every one dollar earned by White men. Native American, Native Hawaiian and Pacific Islander, Hispanic and Latina, and Black women each lose more than $1 million in earnings over a lifetime at today’s rates. For White and Asian women, the gender pay gaps compared to White men are 77 cents and 96 cents, respectively.

Although education does significantly increase the earning potential for women, it is not a shield against the pay gap. At every level of education, women earn less than men, and women of color face the widest gaps. Even when women and men have the same level of education, the same fields of study, and similar work history, the gap remains.

As workers age and progress in their careers, earnings tend to rise. However, women do not see the same growth in compensation as men. Women’s and men’s pay increases with age, but women’s earnings begin to grow more slowly after age 35, and for many women, wages decline after age 50. Furthermore, when women earn less over time, they build less wealth and contribute less to Social Security. Women also live roughly 5.4 years longer than men, which means they are more likely to outlive their savings and rely on smaller retirement benefits.

While women earn less per dollar compared to their male counterparts in all 50 states and Washington, D.C., the gaps differ significantly based on location. New York (91.4 cents), Vermont (91 cents), and Maryland (89.5 cents) have the smallest gender pay gaps, while Idaho (75.6 cents), Utah (73.6 cents), and Louisiana (73.1 cents) have the widest pay gaps.

“Equal pay for work of equivalent value is about more than fairness in a paycheck,” the authors write. “It shapes women’s economic security over a lifetime — from paying bills today to building savings and retiring with dignity. When women are paid less, they lose income now and lose opportunities that depend on that income later.”

They continue, “Closing these gaps requires more than small fixes. We need solutions that raise pay for jobs where women are concentrated, stop discrimination, and support caregiving so women are not punished for the work they do at home and in their communities.”

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