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Work-related gender gaps persist but solutions are clear

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A future of work  in which women will no longer lag behind men is within reach, but it will take a quantum leap, not just hesitant incremental steps, to get there, according to a new International Labour Organization (ILO) report published for International Women’s Day  on 8 March.

“We need to make it happen, and the report, A Quantum leap for gender equality: For a better future of work for all , provides a way forward,” said Manuela Tomei, Director, ILO Conditions of Work and Equality Department.

The report is the culmination of five years of work under the ILO’s Women at Work Centenary Initiative .

It finds that in the last 27 years the difference in the employment rates for men and women has shrunk by less than two percentage points. In 2018, women are still 26 percentage points less likely to be in employment than men. This contrasts with the findings of an ILO-Gallup 2017 global report  on women’s and men’s preferences about women’s participation in paid work, which found that 70 per cent of women prefer to have a job rather than staying at home and that men agree.

In addition, between 2005 and 2015, the ‘motherhood employment penalty’, the difference in the proportion of adult women with children under six years in employment, compared to women without young children, increased significantly, by 38 per cent.

Moreover, women are still underrepresented at the top, a situation that has changed very little in the last 30 years. Fewer than one third of managers are women, although they are likely to be better educated than their male counterparts. The report shows generally that education is not the main reason for lower employment rates and lower pay of women, but rather that women do not receive the same dividends for education as men.

There is also a ‘motherhood leadership penalty’: only 25 per cent of managers with children under six years of age are women. Women’s share rises to 31 per cent for managers without young children.

The gender wage gap remains at an average of 20 per cent globally. Mothers experience a ‘motherhood wage penalty’ that compounds across their working life, while fathers enjoy a wage premium.

“A number of factors are blocking equality in employment, and the one playing the largest role is caregiving,” said Tomei. “In the last 20 years, the amount of time women spent on unpaid care and domestic work has hardly fallen, and men’s has increased by just eight minutes a day. At this pace of change it will take more than 200 years to achieve equality in time spent in unpaid care work.”

The report sets out laws and practices that are changing this dynamic, for a more equal sharing of care within the family, and between the family and the State. “When men share unpaid care work more equally, more women are found in managerial positions,” added Tomei, highlighting the role of men in creating a more gender-equal work of work.

The report also includes findings from ‘real time’ data, gathered by the professional networking website LinkedIn from five countries, covering 22 per cent of the global employed population in three different regions. This joint ILO-LinkedIn collaboration found that women with digital skills – currently a requirement for the most-in-demand and highest paying jobs in science, technology, engineering and maths-related (STEM) – are only between a third and a quarter of LinkedIn members with such skills. However, it also revealed that the women who reach director-level positions get there faster, more than a year earlier than their male counterparts.

The Quantum Leap report shows that achieving gender equality will mean policy changes and actions in a range of mutually reinforcing areas, and it points to measures that can lead towards a transformative and measurable agenda for gender equality. The path of rights is the foundation for a more equal world of work, including the right to equal opportunities, the right to be free from discrimination, violence and harassment, and to equal pay for work of equal value.

A future of work where everyone can care more, with time to care and inclusive care policies and structures is also strongly advocated in the report. A more caring future of work will also mean significant employment creation. The need for universal social protection and a sound macroeconomic framework is also addressed. With the wide-ranging global transformations underway – technological, demographic and climate change – the report calls for greater efforts to engage and support women through work transitions. Increasing women’s voice and representation will also be essential to ensure all the other paths are truly effective.

“We will not get the future of work with social justice we need unless we accelerate action to improve progress on gender equality at work. We already know what needs to be done,” said ILO Director-General Guy Ryder. “We need to implement a transformative agenda that includes enforcement of laws and regulations – perhaps we may even need to revisit those laws and regulations – backed by investment in services that level the playing field for women, such as care and social protection, and a more flexible approach to both working hours and working careers. And there is the persistent attitudinal challenge of attitudes to women joining the workforce and their place in it.”

“We know much more now about gender gaps and what drives them, and what needs to be done to make meaningful progress on gender equality in the world of work – the path is clear,” said Shauna Olney, Chief Gender, Equality and Diversity & ILOAIDS Branch. “With commitment and courageous choices, there can be a quantum leap, so that the future of work does not reinforce the inequalities of the past. And this will benefit everyone.”

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Zimbabwe’s Economy is Set for Recovery, but Key Risks Remain

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Gross Domestic Product (GDP) growth in Zimbabwe is projected to reach 3.9 percent in 2021, a significant improvement after a two-year recession, according to the World Bank Zimbabwe Economic Update (ZEU) launched today.

Economic growth this year will be led by recovery of agriculture as rains normalize, businesses adjust to limitations caused by the COVID-19 (coronavirus) pandemic, and inflation slows down. However, disruptions caused by the pandemic will continue to weigh on economic activity in Zimbabwe, limiting employment growth and improvements in living standards.

The ZEU, Overcoming Economic challenges, Natural Disasters, and the Pandemic: Social and Economic Impacts, provides the World Bank perspective on macroeconomic and poverty developments and discusses ways to strengthen public service delivery in key sectors. This is the third economic update for Zimbabwe produced by the World Bank.  Economic Updates are a standard World Bank tool for macroeconomic and fiscal monitoring.

The ZEU notes that economic recovery is expected to strengthen further in 2022 with GDP growing at 5.1 percent as the deployment of vaccines intensifies and implementation of National Development Strategy 1 (2021-2025) bears fruits. Overall, the COVID-19 global contagion continues to pose significant downside risks, and thus the global and local outlook remains uncertain. A prolonged pandemic, weaker global demand, and heightened macroeconomic instability could choke economic growth, increase poverty, and worsen human capital development outcomes.

Mitigating these risks requires domestic policies to strengthen and sustain macroeconomic stability – which is critical for consolidating economic recovery. Recent efforts to stabilize prices through rule-based monetary and exchange rate policies have been effective and must be continued and expanded. Fiscal policies supportive of these efforts have thus focused on avoiding monetary financing and quasi-fiscal activities, reducing distortive subsidies, and improving fiscal and debt transparency.

“Improving the country’s growth prospects will require further attention to policies that strengthen the quality of service delivery in the social sectors. Preserving lives during an unprecedented that protects livelihoods, strengthens social protection, improves food security, and ensures better education outcomes,” said Mukami Kariuki, World Bank Country Manager.  

Facing tight public finances and limited recourse to external financing, Zimbabwe will need to rely mostly on reallocating domestic resources to optimal public uses and leveraging private financing and humanitarian support where possible. Addressing underlying challenges in health, education, social protection, and food security will require sustained financing, strengthened accountability frameworks and investments in appropriate management information systems.

The ZEU reviews developments in 2019 and 2020; and emerging trends in 2021. Part One of the ZEU provides an overview of the macroeconomic and poverty context. Part Two assesses the impact of COVID-19 and other exogenous shocks on delivery of basic services to the poor and proposes mitigating actions for discussion. It also summarizes key policy options needed to stabilize Zimbabwe’s economy, minimize the social costs of the transition, and prepare for an economic recovery.

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Slow jobs recovery and increased inequality risk long-term COVID-19 scarring

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The labour market crisis created by the COVID-19 pandemic is far from over, and employment growth will be insufficient to make up for the losses suffered until at least 2023, according to a new assessment by the International Labour Organization (ILO).

The ILO’s World Employment and Social Outlook: Trends 2021  (WESO Trends) projects the global crisis-induced ‘jobs gap’ will reach 75 million in 2021, before falling to 23 million in 2022. The related gap in working-hours, which includes the jobs gap and those on reduced hours, amounts to the equivalent of 100 million full-time jobs in 2021 and 26 million full-time jobs in 2022. This shortfall in employment and working hours comes on top of persistently high pre-crisis levels of unemployment, labour underutilization and poor working conditions.

In consequence, global unemployment is expected to stand at 205 million people in 2022, greatly surpassing the level of 187 million in 2019. This corresponds to an unemployment rate of 5.7 per cent. Excluding the COVID-19 crisis period, such a rate was last seen in 2013.

The worst affected regions in the first half of 2021 have been Latin America and the Caribbean, and Europe and Central Asia. In both, estimated working-hour losses exceeded eight per cent in the first quarter and six per cent in the second quarter, compared to global working-hour losses of 4.8 and 4.4 per cent in the first and second quarter, respectively.

Global employment recovery is projected to accelerate in the second half of 2021, provided that there is no worsening in the overall pandemic situation. However this will be uneven, due to unequal vaccine access and the limited capacity of most developing and emerging economies to support strong fiscal stimulus measures. Furthermore, the quality of newly created jobs is likely to deteriorate in those countries.

The fall in employment and hours worked has translated into a sharp drop in labour income and a corresponding rise in poverty. Compared to 2019, an additional 108 million workers worldwide are now categorized as poor or extremely poor (meaning they and their families live on the equivalent of less than US$3.20 per person per day). “Five years of progress towards the eradication of working poverty have been undone,” the report says, adding that this renders the achievement of the UN Sustainable Development Goal of eradicating poverty by 2030 even more elusive.

The COVID-19 crisis has also made pre-existing inequalities worse by hitting vulnerable workers harder, the report finds. The widespread lack of social protection – for example among the world’s two billion informal sector workers – means that pandemic-related work disruptions have had catastrophic consequences for family incomes and livelihoods.

The crisis has also hit women disproportionately. Their employment declined by 5 per cent in 2020 compared to 3.9 per cent for men. A greater proportion of women also fell out of the labour market, becoming inactive. Additional domestic responsibilities resulting from crisis lockdowns have also created the risk of a “re-traditionalization” of gender roles.

Globally, youth employment fell 8.7 per cent in 2020, compared with 3.7 per cent for adults, with the most pronounced fall seen in middle-income countries. The consequences of this delay and disruption to the early labour market experience of young people could last for years.

The pandemic’s impact on young people’s labour market prospects is laid out in greater detail in an ILO brief published alongside the WESO Trends. The Update on the youth labour market impact of the COVID-19 crisis  also finds that gender gaps in youth labour markets became more pronounced.

“Recovery from COVID-19 is not just a health issue. The serious damage to economies and societies needs to be overcome too. Without a deliberate effort to accelerate the creation of decent jobs, and support the most vulnerable members of society and the recovery of the hardest-hit economic sectors, the lingering effects of the pandemic could be with us for years in the form of lost human and economic potential and higher poverty and inequality,” said ILO Director-General, Guy Ryder. “We need a comprehensive and co-ordinated strategy, based on human-centred policies, and backed by action and funding. There can be no real recovery without a recovery of decent jobs.”

As well as looking at working hour and direct employment losses, and foregone job growth, the WESO outlines a recovery strategy structured around four principles: promoting broad-based economic growth and the creation of productive employment; supporting household incomes and labour market transitions; strengthening the institutional foundations needed for inclusive, sustainable and resilient economic growth and development; and using social dialogue to develop human-centred recovery strategies.

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Universal Access to Sustainable Energy Will Remain Elusive Without Addressing Inequalities

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During the last decade, a greater share of the global population gained access to electricity than ever before, but the number of people without electricity in Sub-Saharan Africa actually increased. Unless efforts are scaled up significantly in countries with the largest deficits the world will still fall short of ensuring universal access to affordable, reliable, sustainable, and modern energy by 2030, according to Tracking SDG 7: The Energy Progress Report released today by the International Energy Agency (IEA) the International Renewable Energy Agency (IRENA), the UN Department of Economic and Social Affairs (UN DESA), the World Bank, and the World Health Organization (WHO).

According to the report, significant progress has been made since 2010 on various aspects of the Sustainable Development Goal (SDG) 7, but progress has been unequal across regions. While more than one billion people gained access to electricity globally over the last decade, COVID’s financial impact has made basic electricity services unaffordable for 30 million more people, the majority located in Africa. Nigeria, the Democratic Republic of Congo and Ethiopia had the biggest electricity access deficits, with Ethiopia replacing India in the Top 3.

Globally, the number of people without access to electricity declined from 1.2 billion in 2010 to 759 million in 2019. Electrification through decentralized renewable-based solutions in particular gained momentum. The number of people connected to mini grids has more than doubled between 2010 and 2019, growing from 5 to 11 million people. However, under current and planned policies and further affected by the COVID-19 crisis, an estimated 660 million people would still lack access in 2030, most of them in Sub-Saharan Africa.

At the same time, some 2.6 billion people remained without access to clean cooking in 2019, one third of the global population. Largely stagnant progress since 2010 leads to millions of deaths each year from breathing cooking smoke, and without rapid action to scale up clean cooking the world will fall short of its target by 30 percent come 2030. The state of access in the Sub-Saharan African region is characterized by population growth outpacing gains in the number of people with access, so that 910 million in the region lack access to clean cooking. The top 20 access-deficit countries account for 81 percent of the global population without access to clean fuels and technologies. Of these, the Democratic Republic of the Congo, Ethiopia, Madagascar, Mozambique, Niger, Uganda and Tanzania had less or equal to 5 percent of their populations with access to clean cooking. On a positive note, Indonesia, Cambodia and Myanmar have made gains each year over the report period.

The report examines various ways to bridge the gaps to reach SDG7, chief among them the goal of significantly scaling up renewables – which have proven more resilient than other parts of the energy sector during the COVID-19 crisis. While renewable energy has seen unprecedented growth over the last decade, its share of total final energy consumption remained steady as global energy consumption grew at a similar rate. Renewables are most dynamic in the electricity sector, reaching around 25 percent in 2018, while progress in the heat and transport sectors have been much slower.

More than one third of the increase in renewable energy generation in 2018 can be attributed to East Asia – driven by large uptakes of solar and wind energy in China. The largest country-level advances in renewable energy in 2018 were observed in Spain, owing to higher hydropower generation, followed by Indonesia where a rapid uptake of bioenergy for power generation played a substantial role. To significantly increase the share of renewable energy in line with the SDG 7 target, current efforts need to accelerate in all end-use sectors to scale uptake of renewables while containing total energy demand.

Energy intensity improvements (a proxy for energy efficiency) are moving further away from the target set under SDG7 for 2030. The rate of global primary energy intensity improvement in 2018 was 1.1 percent compared to 2017, the lowest average annual rate of improvement since 2010. The annual improvement until 2030 will now need to average 3 percent if we are to meet the goal.

Accelerating the pace of progress across all regions and indicators will require stronger political commitment, long-term energy planning, and adequate policy and scale incentives to spur faster uptake of sustainable energy solutions. Although clean energy investments continue to be sourced primarily from the private sector, the public sector remains a major source of financing and is central in leveraging private capital, particularly in developing countries and in a post-COVID context. One of the newest indicators in the report, international public financial flows to developing countries, shows that international financial support continue to be concentrated in a few countries and failing to reach many of those most in need. Flows to developing countries in support of clean and renewable energy reached $14 billion in 2018, with a mere 20 percent going to the least-developed countries, which are the furthest from achieving the various SDG7 targets. An increased emphasis on “leaving no one behind” is required in the years ahead. 

This is the seventh edition of this report, formerly known as the Global Tracking Framework (GTF). This year’s edition was chaired by the United Nations Statistics Division. 

The report this year comes at a crucial time as Governments and stakeholders are gearing up for the UN High-level Dialogue on Energy, a summit-level meeting in September 2021 that will examine steps needed to achieve SDG7 by 2030 and mobilize voluntary commitments and actions in the form of Energy Compacts.

Funding for the report was provided by the World Bank’s Energy Sector Management Assistance Program (ESMAP).

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