Health crises have social and economic tolls — and over the past year, women and working mothers paid a heavy price.
According to a Boston Consulting Group survey, the time parents spent on education and household tasks increased from 30 to 59 hours per week during the pandemic. Mothers shouldered the bulk of that increase, and many had to withdraw from the workforce to accommodate childcare, homeschooling, and other caregiving needs.
In total, an estimated 3 million women withdrew from the US workforce due to the coronavirus pandemic. That’s quadruple the number of men who were affected. We’ll address the costs, why they matter, and how employers can build workplaces where women and working mothers can thrive.
Breaking down the costs
“The pandemic disproportionately impacted women in the workplace and, in particular, women of color. The result has been that women's labor participation rate dropped to the lowest it has been in decades,” said Candance Chow, co-founder of NextGroup LLC, a diverse talent placement firm and professional community for women.
Even amid a modest economic recovery, unemployment among Black women continues to increase. Women of color disproportionately account for single, working mothers in the US — and the childcare and caregiving needs during the pandemic forced many to cut hours or step back from the workforce entirely. Last month, a Maven and women.nyc webinar broke down the staggering economic impact of the “She-cession” on the New York City economy alone:
- Up to 375,000 city parents may have gone from full to part-time work, taken a less demanding position, or left the workforce altogether.
- Parents downshifting their careers could cost the city $2.2 billion per year in tax revenue.
- New York City’s economy could lose out on $18.5 billion in disposable income spending power.
“Ongoing uncertainties around child care are giving women pause before they take the plunge back into formal work settings,” Chow said. “They’re forced to decide whether employment is, quite frankly, worth risking their health or their families’ stability.”
Why it matters to private businesses
Women account for half of the eligible workforce. When they have to reduce hours or withdraw entirely businesses across all sectors are hurt. For example, replacing just one employee costs businesses up to 213% of that individual’s salary. Conversely, Maven and Best Places to Work research shows that companies that invest in working mothers have over five times higher revenue growth. Organizations led by gender-diverse boards are also 28% more likely to outperform their peers financially.
“Simply, the pent-up demand for services and economic opportunity can’t be delivered on if employers can't hire and retain women,” Chow said. One analysis found that increasing the share of women in the labor force by just 4% would have an enormous impact on the US economy, increasing GDP by 3.5% and generating an additional $600 billion of activity.
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