The International Society of Female Professionals reviews how COVID-19 impacted women in the workforce.
October 8, 2022 — The COVID-19 pandemic was a major disruptor of the workforce from both the employee and employer perspectives. For women, the long-term effects the pandemic will have on employment and advancement are still uncertain, but organizations like the International Society of Female Professionals are already examining new challenges.
Caregiving and earnings
From caregiving for aging parents and relatives to childcare and household chores, women still carry a disproportionate burden compared to men. The Centers for Disease Control identifies that most caregivers for older adults are women over 50, and women make up two out of three caregivers.
COVID-19 amplified the need for caregiving and turned it into a 24/7 role, spurring many women to leave the workplace or not return to their former jobs when the door reopened. Even after employers started return-to-the-office campaigns, homeschooling was still in force and other essential services, such as daycare, were not the best option for families with high-risk health concerns.
International Society of Female Professionals examines pandemic impacts on retirement
For women who are in the prime age range for caregiving, the impact leaving a career for a multi-year gap will have on retirement cannot yet be fully calculated.
As more women reentered the workforce after pausing retirement savings and other investments, any new contributions took place during an economic downturn. Simultaneously, the value of assets in stock-focused 401(k) plans and IRAs tumbled. For many, the next several years could be a long game of catch-up while balancing the demands of higher consumer and fuel prices.
Unfortunately, many of the women who did leave the workforce involuntarily or due to caregiving challenges were the least situated to weather a gap in retirement savings or employment. Women with college degrees and in highly professional roles were better able to adapt by working from home. Women in service industries or working without a degree left their roles at approximately two times the rate of college graduates, according to an analysis by Harvard economist Claudia Goldin.
For both groups, the pandemic did bring additional stressors and increased expectations for caregiving, many of which are persisting as the pandemic abates. Women who hunkered down throughout the pandemic managing a job, temporary homeschooling, and other increased expectations may need to renegotiate aspects of their lives as they transition to new roles.
This is particularly true for those whose employers never required a return to the office. For these professionals, a long-term career from home could limit advancement and long-term earnings as badly as time off.
Economic downturn impacts employment
As prices continue to rise and economic tensions stay in place, the job openings advertised as people participating in the “Great Migration” will constrict. They already are, in many instances, taking with them wage competition. Hiring freezes have started in some industries, further limiting options to improve the salary.
Women have historically faced incredible difficulty obtaining competitive wages, fair advancement, and employment at their level of qualification. A tight job market can exacerbate these situations, making it essential to research potential employers in a given industry with equitable hiring practices and a history of fair compensation, according to the International Society of Female Professionals.
