What does the growth of the US economy mean?
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Editor's Note:
Heather Hay Murren is a former Commissioner of the Financial Crisis Investigation Commission and is a founder of the Jochebed Scholarships for Women at Johns Hopkins University.
The opinions expressed in this comment are yours.
(CNN) -
Women are at risk of losing decades of advancement in the workforce as a result of the covid-19 pandemic.
This crisis will have a much more devastating impact on the financial security of women than the Great Recession, not only from loss of income, but also from destruction of wealth.
In September alone, 80% of the 1.1 million workers who left the workforce were women, that is, four times more women than men.
The challenges of whoever wins the elections
Whoever wins the US presidential election will face serious challenges over the next four years as we recover from the economic impact of this pandemic.
But we must think beyond the immediate crisis to solve these long-term challenges.
Leaving the workforce, even for a short time, has a detrimental effect on earnings for life.
Results in an average 7.3% reduction in salary upon returning to the workforce.
It also means fewer raises, promotions, and tenure;
and lower Social Security contributions and savings, resulting in higher poverty rates among women of retirement age.
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Women's economic progress toward greater equality in the workforce before the pandemic, while positive in terms of direction, still left a significant wealth gap between men and women.
For example, the median retirement savings for men is $ 76,000, compared to just $ 23,000 for women.
One in three women say they have saved less than $ 10,000.
Need to take action now
Taking action now to promote gender equality could add $ 2.7 trillion to America's GDP by 2025. If we take strong and immediate action - from legislation to employer policies to financial loans - to ensure that women are employed At the same pace and at the same levels as men, we will not only close the wealth gap, but create a stronger and more stable economy that offers women the ability to return to work.
Without these steps, current losses in labor force participation could drain years of accumulated capital.
They could also force women to give up future job opportunities, as losses of housing and transportation, combined with increased caregiving responsibilities, make them unable to accept new jobs even when they return.
During the 2008 financial crisis, more men than women lost their jobs.
Many losses were centered in construction and manufacturing.
And the historic recession that resulted from that crisis did not have the amplifying effects of a blanket shutdown and school closings.
However, during the current recession, women, who make up 49% of the total workforce, accounted for 55% of the initial jobs lost last spring.
More opportunities for women
As we continue to seek to mitigate the negative economic impacts of this pandemic, it is critical that policymakers act not only on measures to enhance immediate economic security, but also on ways for women to take full advantage of job opportunities. .
This means, for example, affordable childcare, access to healthcare and protection from domestic violence, which has intensified during the closures.
We also need to promote a culture in all sectors that creates more job opportunities for women.
This means, for example, promoting diversity and equality in the federal workforce, increasing female representation on boards, and increasing access to capital for female entrepreneurs.
Also enforce equal pay and ratify the Equal Rights Amendment to finally make gender equality part of our Constitution.
If we don't address gender inequality in our current crisis, that will set women back decades.
Elections 2020 United States Gender equality