Millions of women care for their children, parents, aging spouses, and other people with disabilities, often without any outside help. The COVID-19 pandemic implies that even though they are free, their services come at a steep cost, particularly for women and the economy’s health.
AARP’s finding on the Economic Impact Of Supporting Working Family Caregivers states that if employers and governments provide more support, the U.S. Gross Domestic Product will increase by $1.7 trillion by 2030. You can also see it as a 5.5% increase over current projections.
This is equivalent to New York State’s economy. By 2050, the GDP could reach $4.1 trillion or 6.6% of the total U.S. economy.
If all caregivers were eligible for support, the economic impact would be even greater. This research suggests that we should take a closer look at the people behind these numbers.
In addition, caregivers who work outside of the home can suffer from a lack of support over the long term. Women who quit their jobs in the wake of the pandemic may not have the financial security they need. This could affect their lives for the rest. Employers have lost productive workers who struggle to balance caregiving and work demands. The economy has lost its engine of growth.
Before the pandemic started, 53 million Americans cared for others, 61% of the women with paid jobs. On average, they provided 35.7 hours of care per week, which is roughly equivalent to a full-time job for an adult 50 years or older, or a child who has special needs.
In February 2021, there were 2.3 million fewer women in the U.S. workforce (606,000 Black women and 618,000 Latinas) than in February 2020. This was before the pandemic. Many women quit their jobs to care for their families as COVID-19 ravaged long-term care facilities and schools.
However, this issue is much more than a pandemic. Working caregivers have faced serious difficulties for a long time. They are often faced with conflicting demands and discrimination at work. Black caregivers report this phenomenon at a higher rate than white caregivers.
It is not surprising that women retire earlier than men because of caregiving responsibilities. This effect is most common among women with low incomes.
Why Women Suffer The Most At Work and At Caregiving
Individuals and their health can be affected by the pressure of caring for family members while also working. Six out of ten caregivers (61%) work simultaneously caring for their loved ones. Nearly one in four caregivers (23%) claim that caregiving has made them sicker, up 17% last year. This hardworking group is at greater risk of developing chronic illnesses, depression, and sleeplessness.
There is evidence that caring for others can lead to financial hardships, especially for women. This cost could be detrimental to the U.S. economy. Many caregivers lose their income, savings, or benefits that would increase their financial security for retirement. Long-term financial security can be compromised by quitting your job, refusing promotions, and shifting from part-time to full-time work.
These disruptions can have a lasting financial impact. Women have more gaps in work history than men, and men are more likely to benefit from compounding interest in retirement funds. According to one Institute for Women’s Policy Research estimate, these disruptions can lower women’s wages over their lifetime. This could be between $531,000 to $800,000. It also means that there is less retirement security and lower Social Security benefits.
The Solution
However, if a family caregiver could be paid to care for their loved ones, this won’t stress their financial obligations. It will also help them focus on the person they’re taking care of as their monetary issues are taken care of.
