The UK is officially in recession for the first time in 11 years following the impact of Covid-19 on the economy. Lockdown measures meant that the UK economy shrank 20.4% compared between April and June compared to the first three months of the year.
The perhaps unsurprising news has still made for a depressing read, with ‘Recession’ trending all day on Google as people search for more information about our economic future.
According to the Office for National Statistics (ONS) the economy bounced back in June, growing by 8.7% after a small growth of 1.8% in May showing the result of easing lockdown measures. However, Jonathan Athow, deputy national statistician for economic statistics, said that ‘Despite this, gross domestic product (GDP) in June still remains a sixth below its level in February, before the virus struck.’
But the important question everyone wants to know is, what does any of this mean for our future? In particular, as history has shown, will women be the hardest hit? We spoke to University of Cambridge economics fellow, Dr. Victoria Bateman to find out.
Here, she breaks down exactly how women will be affected and what can be done to combat that...
‘Even before the recession, the economy wasn’t exactly working well for women. The “crisis in care” has been ongoing for years, leaving women run ragged, whether from childcare or elderly care; women are much more likely than men to be found in low paid parts of the economy, feeling undervalued and overworked. Women’s low level of earnings compared with men makes housing unaffordable, and means they build up much less of a pension pot over their lives. And then, when Covid-19 hit, women were more likely to be found on the frontline, exposed to risk but in jobs that paid miserly wages.
‘The resultant recession affects women in numerous ways - in terms of their jobs and financial status, as parents and carers, and as users of public services. The impact will be negative, the only question is how negative, which will depend on how government responds. Supporting women’s incomes and employment isn’t as simple as furloughing schemes.
Childcare and elderly care need to be prioritised by the government to avoid setting women back years.
'Childcare is essential to women’s ability to work, but, as the Sutton Trust has shown, around quarter of nurseries are set to close as a result of the lockdown, more in the poorest parts of the country. As the Women’s Budget Group argue, child care and elderly care need to be prioritised by government if we are to avoid setting women back years - and if the economy is to rebuild.
‘In addition to childcare, is the question of public services more generally. Recessions in recent history have brought austerity, as government’s deal with the impact on the public purse. Cutbacks to public services have meant women stepping in - unpaid - to fill the resultant gaps, whether in terms of elderly care or children’s services. Then we have the matter of domestic violence, which evidence suggests has escalated during the lockdown.
'Greater public funds are desperately needed for those affected. So many of the difficulties that women face are rooted in the home, an area of life which has typically been off the radar of politicians. By forcing us into the home, the lockdown has brought these problems to the surface, from an inadequate system of childcare to domestic violence. The question now is whether we take this as an opportunity to recognise the longstanding problems and do something about them - or not. That’s what will truly determine the effect on women longer term.
‘While economists have tended to assume that what goes on within the home is happy and harmonious, the reality is that it can instead be a hotbed of conflict, creating poverty and disadvantage for those in a weaker position within the home - those who lack bargaining power, and for whom there seems to be no way out. Of course, for those who live within a household that is more cooperative as opposed to conflictual, the present circumstances create an opportunity for the rebalancing of care and housework between partners.
The recession is likely to further increase inequality between women.
‘At present, 3/4 of unpaid care in the world is conducted by women, something which takes a toll on women's ability to progress in the workplace, and contributes to the gender pay gap. A more equal distribution of caring responsibilities within the home is key to ensuring that women are on an equal footing outside of the home. While for some women, Covid-19 will likely place them in a less strong position longer term (for the reasons explained above), for others it will have an opposite kind of effect.
‘Ultimately, therefore, even where, on average, Covid-19 and the resultant recession doesn't affect the economic gap between men and women, it is likely to further increase inequality between women themselves.’
Read More:
From Childbirth To The Economy, Women's Rights Are Endangered By The Coronavirus Crisis
Coronavirus Has Disrupted Our Lives: Could That Be Good For Women?