COVID-19 is harming ladies’s labor market outcomes greater than males’s. In earlier pandemics and monetary crises, white-collar employees and male-dominated industries have been the primary to see jobs disappear. However COVID-19 has hit quicker and more durable those that are probably the most susceptible in society — these working in lower-paid roles; in sectors like retail, lodging, and tourism, which have been largely shut down by COVID lockdowns. And the labor pressure in these sectors is disproportionately feminine.
PwC’s new report, “Ladies in Work 2021: The impression of COVID-19 on ladies in work,” reveals that from 2011 to 2019, ladies in Organisation for Financial Co-operation and Growth (OECD) international locations constantly made positive aspects towards financial empowerment. The important thing metrics used to measure progress are feminine labor pressure participation, participation fee and gender pay gaps, the share of feminine staff in full-time jobs, and the feminine unemployment fee. Some international locations, notably Iceland and Sweden, constantly lead the pack, and on this 12 months’s evaluation, New Zealand made it into third place.
However progress over the past decade has been sluggish. By our calculations, if present developments proceed, it could take 24 years for girls’s labor pressure participation to catch as much as males’s, 112 years to shut the gender pay hole, and 60 years for the share of feminine full-time employees to equal the present share of male employees.
At present charges of progress towards gender equality throughout the OECD, it could take 24 years for girls’s participation within the labor pressure to catch as much as males’s, and 112 years to shut the gender pay hole.
These figures, beautiful as they’re, shall be even worse when the complete impact of the pandemic is realized. It’s well-known that COVID-19 is having a huge effect on labor markets across the globe, bringing job losses for each men and women as entire sections of the economic system have been closed.
However it’s ladies who’re struggling most. In america, OECD information reveals the feminine unemployment fee shot up from 4.4 p.c in March 2020 to 16.1 p.c in April. By December 2020, it had fallen to six.7 p.c, which was nonetheless three proportion factors larger than the earlier December. The male unemployment fee additionally elevated, however not as a lot.
In some international locations, just like the U.Okay., the pandemic’s full impression on jobs is but to be seen as authorities job-retention schemes have enabled companies to maintain employees, regardless of shocks to demand. However right here once more, extra ladies’s jobs are in danger than males’s: Of the 15.3 million jobs furloughed within the U.Okay. within the third quarter of 2020, 52 p.c (of these for which gender was identified) have been held by ladies, despite the fact that ladies solely account for 48 p.c of the U.Okay. workforce.
Why is that this occurring?
There are a few causes for this development. One is that the pandemic is disproportionately hurting sectors and job roles with extra feminine employment. Individuals working in lower-paid, contact-intensive sectors — lodging and meals providers, the humanities, leisure and recreation — have been harm probably the most by the large-scale closure of companies and sections of the economic system. Globally, 40 p.c of all employed ladies (roughly half a billion individuals), in comparison with 37 p.c of males, are employed in these hard-hit sectors.
The second cause is that the pandemic is amplifying current inequalities within the quantity of unpaid care and home work that girls do all over the world. Even earlier than the pandemic, ladies spent on common six extra hours than males on unpaid childcare each week. Throughout COVID-19, ladies have taken on a higher share of an elevated burden, and now spend 7.7 extra hours per week than males, in response to analysis by UN Ladies. This “second shift,” including as much as 31.5 hours per week for girls, is nearly as a lot as an additional full-time job. Within the U.S. and the U.Okay., survey information present that these extra caring obligations have already lowered ladies’s contribution to the economic system. And the longer this larger burden on ladies lasts, the extra ladies are prone to go away the labor market completely.
We estimate that because of the pandemic, the Ladies in Work Index for the OECD will decline in 2020 and slip even additional in 2021 — setting again ladies’s progress to 2017 ranges. To undo this harm and totally get better from the setback — even by 2030 — progress towards gender parity as measured by the index, must be double the speed it grew at between 2011 and 2019. This shall be tough to realize.
Coverage responses for financial restoration must particularly handle the pandemic’s impression on ladies. If nothing is completed to cease ladies from falling additional behind than they already are, the OECD might by no means rejoin its pre-pandemic progress path to gender equality.
Governments and companies must work collectively for quicker progress towards gender equality in work. Our report outlines 4 actions that may assist obtain a sustainable and inclusive post-COVID financial restoration:
1. Actively assess the gender and equality results of all authorities insurance policies. This implies conducting equality impression assessments to make sure that insurance policies shield ladies and different marginalized teams within the labor market, and to tell fairer and simpler responses to COVID-19 and future crises.
2. Empower ladies to take part within the labor pressure by addressing underlying gender inequalities in society round unpaid care and home work. Related measures embody recognizing the worth of the unpaid care work completed by ladies (equal to round 10 p.c of world GDP every year); redistribution of this care work by means of equal entry and incentives to take paid parental go away for each moms and dads, inexpensive childcare, and entry to versatile working preparations for all.
3. Take motion to cease the pandemic from widening already vital gender pay gaps. Coverage steps right here embody mandating reporting on the gender pay hole, selling pay fairness throughout and inside industries, and devising and implementing office gender motion plans to advance extra ladies into management roles.
4. Present devoted help for feminine enterprise initiatives and extra feminine employment in high-growth sectors of the economic system. This consists of concentrating on and tailoring expertise growth initiatives to ladies’s wants; incentivizing ladies to retrain and reskill in areas equivalent to renewable power, AI, and clear progress; and offering monetary and broader help applications for feminine entrepreneurs and female-led startups.
- Larice Stielow is a senior economist with Technique&, PwC’s strategic consulting enterprise. Based mostly in London, she is a senior supervisor with PwC UK.
- The next individuals additionally contributed to this text and the analysis: Tara Shrestha Carney, Divya Sridha, and Oliver Forsyth, economists with the Technique& crew in London.