Employment minister Esther McVey has been beaten in Wirral West, after Labour's Margaret Greenwood won the tight marginal.
Esther McVey said she thinks it is "great news people are talking about powerful women" in Number 10 after a Daily Mail headline on "the battle of the Downing Street catwalk" was widely criticised.
Deputy Prime Minister Nick Clegg poked fun at the newspaper by tweeting a picture of what he was wearing, while Green MP Caroline Lucas said the headline was an "all time low".
However, the employment minister, who was promoted to attend Cabinet meetings in yesterday's reshuffle, said: "I think it's great news that people are talking about powerful women walking up in to Downing Street.
"You've got some great women there now, secretaries of state, new people who've just come in to Parliament."
"So, you know what? If it takes a photo of some women getting a new job to start a whole generation of new young girls talking about what jobs I can do then that's fine by me," she added.
The country's "resilience" during the economic downturn "is being rewarded" after figures released today showed a fall in unemployment, Employment Minister Esther McVey said.
She said: "An important milestone has been reached in our country's recovery. With one of the highest employment rates ever, it's clear that the Government's long-term economic plan to help businesses create jobs and get people working again is the right one.
"With an employment rate which has never been higher, record women in work and more young people in jobs, the resilience of the country during the downturn is being rewarded.
"We know there is more to do, and the best way to do so is to go on delivering a plan that's creating growth and jobs."
The Government will be working with a host of local organisations to get "disengaged" youngsters into either education, work or an apprenticeship, the Employment Minister told Good Morning Britain.
Esther McVey said the new scheme was about "working with" disengaged teenagers to help them turn their lives around.
Minister for Employment Esther McVey has praised the news of average earnings rising above the rate of inflation for the first time in six years.
She said: "More young people are in work, more women are in work, wages are going up, and more and more businesses are hiring - and it's a credit to them that Britain is working again."
Employment minister Esther McVey will join Tom Bradby on The Agenda tonight.
Also on the panel will be the writer Jeanette Winterson, comedian Rory McGrath and the Times columnist Philip Collins.
They will be discussing Maria Miller, the welfare cap and holidays abroad versus "staycations".
The Agenda with Tom Bradby is on ITV tonight at 10:35pm.
Conservative MP Esther McVey has been promoted from minister for the disabled to employment minister.
She was said to have "looked happy" as she left Downing Street.
The Conservative minister for the disabled Esther McVey has just walked into Downing Street.
She said there was "no news yet."