© ILO Clothing factory in Vietnam. Rising debt burden negatively impacts women’s employment: 55 million jobs at risk Women
Increasing government spending on debt service will lead to the loss of 55 million jobs among women and a reduction in their income by 17 percent. This is stated in a report by the United Nations Development Program (UNDP), based on data from 85 developing countries.
Debt Expenditures and Women’s Employment
A new report entitled Who’s Paying for It? Gender Inequality and Public Debt notes that as debt servicing costs increase, government spending on health and social protection falls, limiting access to essential services and formal employment.
This disproportionately affects women, who suffer more than men from job loss, reduced income and increased unpaid care work for loved ones.
“The human price” of debt
“Sovereign debt is not a mathematical problem, but a human problem. This analysis provides new insight into how onerous debt payments are straining the fiscal capacity of governments around the world and leading to cuts to critical social services, with women paying the greatest price,” said UNDP Administrator Alexander De Kroo.
“For example, when funding for care services [for the elderly or people with disabilities] is cut, the responsibility falls on households, mainly women, which limits their economic opportunities. Ultimately, debt management strategies must maintain space for investment in social and care systems,” he added.The report says jobs supporting 55 million women are at risk in the short term, and 92.5 million in the long term if countries’ debt burden increases. An increase in maternal mortality by 32.5 percent is also predicted. In addition, life expectancy is expected to decline for both women and men.
Such consequences signal a setback in development, and this trend may intensify amid the current military escalation in the Middle East. Thus, against the backdrop of instability energy markets and inflation, budget space is shrinking even more, often at the expense of social investments.
The need for gender approach
The report highlights the importance of including a gender analysis in every government borrowing decision.
“Debt management strategies are important for everyone, but when government spending is cut due to debt payments, women are first in line are losing jobs, access to services and economic stability. That is why it is necessary to include gender impact assessments in decision-making, to protect key investments in social infrastructure and care systems,” said UNDP representative Raquel Lagunas.