The global crisis created by the pandemic is anticipated to cost our global economy close to $8.5 trillion in output in the next two years, with approximately 34.3 million anticipated to fall below the poverty line says Benjamin Gordon Palm Beach. It’s because the financial crisis has impacted each country across the globe. Also, an impact of inequality can have serious implications for the economy along with the state of diversity for an estimable future.
If you look at the United States, towards the end of 2019, the women had increased non-farm payroll occupations in comparison to men. It was the first time ever, over the employment growth period.
Benjamin Gordon Palm Beach talks about the economic impact
There are many factors contributing to the complete disproportionate impact on the economy. Usually, women assume a bigger role in caring for the elderly, children, and the sick. There has been a quick increase in the requirement of self-offered unpaid care. And with the pandemic outbreak resulting in the closing of the school, there was a problem in having access to in-home medical help. And the overload of making up for this has usually been on an increased number of women, which made several lose out on their jobs. Also, Benjamin Gordon Palm Beach says that one in four women stepped back in their jobs or moved away from the workforce.
According to a survey, close to 25% of the women talked about job loss during the pandemic so that they could take care of their children. This resulted in a blow to the economy. It’s because the economic impact of several women moving out from the workforce and bringing down the hours on their caretaking responsibilities might have been $64.5 billion annually.
People are studying the global impact
The global economic impact of the pandemic outbreak on minorities and women is being studied today. However, the early indicators reveal that it could result in long-term issues. Also, the effect of women moving out from the workforce to get involve in unpaid care can result in a $29.4 billion impact on the global economy owing to lost wages. It can also be about a $16.4 billion pay for average families.
Another global aspect is the visible gender wage gap. It’s a known fact that women get paid less in comparison to men around the world. There are lesser savings for insulating them against unemployment and challenging economic times. The women who lost their jobs certainly felt impact more in comparison to men. And the ones who still have a job are struggling with an uncertain future that has lesser resources for buffering them.
Furthermore, Benjamin Gordon Palm Beach says that the gender wage gaps indicate that women would earn lesser than a man, which can precipitate them to leave their work due to unpaid care. It will result in a higher diversity gap in the sectors such as business, technology as well as finances, which can have unwarranted negative consequences on future advancements as well as the way in which the systems function.