In past recessions, industries like manufacturing and
construction were often the hardest hit. For example, some economists referred
to the Great Recession as a “man-cession” because at the outset, more men lost
jobs than women. In some households, wives were able to find employment more
often than men. The recovery, however, favored men, who regained 5.5 million
jobs compared to 3.6 million jobs by women.1
Today’s
pandemic-led economic crisis appears to be taking a different route: Women, to
date, are taking on a larger financial toll. As society has progressed, ongoing
gender inequities in income and opportunity are having a far more wide-reaching
impact. That’s because today, 71% of American households with children rely on
women’s income for their financial well-being.2
Going
forward, it may be important for people to consider their work roles and how
they might weather similar crises in the future. After all, just as we
diversify our investment portfolios to help protect assets, households may need
to consider alternative sources of income, such as passive income streams,
either through assets or other income opportunities. Give us a call if you’d
like to explore this further.
The
social distancing mandates characterized by COVID-19 have resulted in higher
levels of female unemployment due to their concentration in jobs that require
close physical contact, such as dental and medical assistants, home health
aides, hair stylists and manicurists. Women also tend to work more part-time
jobs, which are often the first to be laid off, and may work jobs that do not
offer paid vacation or paid sick leave. Even among women who continue to earn
income during this difficult period, they are generally paid less. In
aggregate, women earn 69 cents for every dollar men earn.3
With
schools and daycare centers shuttered nationwide, many working mothers must
stay home to care for their children — particularly since care normally
provided by grandparents, friends or neighbors is discouraged or prevented by
shelter-in-place orders. Among essential services workers expected to remain on
the job, nine out of 10 nurses and nursing assistants are women, and more than
two-thirds of workers at supermarkets and fast food chains are women — so their
health (and that of their families when they return home) is at higher risk.4
Some
of the problems women are facing right now go beyond the economic. With people
spending more time at home, there are reports of increased domestic violence.
Women also require more preventive health and reproductive care, so the
suspension of regular doctor’s office and well-woman visits could lead to late
diagnosis of health conditions and unmonitored pregnancies.5
Generation
X women, ages 40 to 55, are particularly stretched and stressed out during this
difficult time. That’s because many were already sandwiched between taking care
of children at home and supporting their elderly parents. Now that they are
sheltering in place while trying to juggle work and home schooling, coupled by
the strain of not being able to interact socially with older parents, this is
bound to take a huge toll both mentally and physically.6
On
the other hand, sometimes out of the ashes of great loss rises a phoenix, and
such an opportunity for women could exist in this circumstance. First is the
recognition of how much women’s roles contribute to the fabric of society, in
terms of income, consumerism, nurturing and vital jobs — now known as
“essential services.” Many husbands at home with the kids may now be realizing
the extent to which their wives juggle managing a job, raising children, taking
care of elderly family members and most household duties. Hopefully this
appreciation will extend beyond the pandemic and outside the household, leading
to more equitable pay and policies.
And
then there’s likely to be a global recognition of which countries responded
best to the pandemic and prevented the most deaths and economic impact.
Already, the leaders of Taiwan, Germany and New Zealand are being credited for
the greatest success due to early, quick action. While only 7% of the world’s
leaders are female, each of these countries is led by a woman.7
1Arne L. Kalleberg and Till M. Von Wachter. National
Center for Biotechnology Information. April 2017. “The U.S. Labor Market During
and After the Great Recession: Continuities and Transformations.” https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5959048/.
Accessed April 27, 2020.
2 NBC News. March 23, 2020. “Gender economist
Katica Roy: If we don’t act fast, women will bear the brunt of the financial
crisis caused by coronavirus.” https://www.nbcnews.com/know-your-value/feature/gender-economist-katica-roy-if-we-don-t-act-fast-ncna1166771.
Accessed April 27, 2020.
3 Ibid.
4 Knowledge@Wharton. April 21, 2020. “Why the U.S.
Economic Downturn Could Hurt Women More.” https://knowledge.wharton.upenn.edu/article/economic-downturn-hurt-women/.
Accessed April 27, 2020.
5 Julia Travers. Inside Philanthropy. April 28,
2020. “Women Face Amplified Risks in the Pandemic. Funders Are Responding.” https://www.insidephilanthropy.com/home/2020/4/28/women-face-multiple-challenges-in-the-pandemic-funders-are-responding.
Accessed April 28, 2020.
6 S. Mitra Kalita. CNN. April 20, 2020. “Gen X
women were already exhausted, then came a pandemic.” https://www.cnn.com/2020/04/20/health/generation-x-coronavirus-calhoun-kalita-wellness/index.html.
Accessed April 27, 2020.
7 Leta Hong Fincher. CNN. April 16, 2020. “Women
leaders are doing a disproportionately great job at handling the pandemic. So
why aren’t there more of them?” https://www.cnn.com/2020/04/14/asia/women-government-leaders-coronavirus-hnk-intl/index.html.
Accessed April 27, 2020.
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