Care work has emerged as one of the biggest barriers to women's participation in the labour force
The daily lives of women across the globe have one thing in common, unpaid care work is traditionally seen as the female’s responsibility. The responsibility of caring for children, the sick, and the elderly inevitably falls on mothers, wives, and daughters. These unpaid duties result in persistent disparities in the workforce and in society at large, which ultimately deprives women of their own personal development. It also prevents countries from tapping into a significant portion of their potential GDP, which could be as high as 15% of the Gross Domestic Product (GDP) on average across the OECD countries if we calculate the value of time spent on unpaid work. As per the World Bank’s Gender Employment Gap Index (GEGI), countries stand to increase their GDP by up to 20 percent if gender employment gaps are closed. While we have the data on how much nations stand to gain by closing the existing gender employment gaps, collaborative action from all stakeholders of the ecosystem, including the government, the private sector, and the social investment sector holds the key in this regard.
This year, India has shifted the needle from women empowerment to women-led development in its G20 Presidency. During the recent G20 EMPOWER Summit, the focus was on the empowerment and recognition of women at the local or community level and their empowerment as the bedrock of our society’s development.
On the sidelines of the Summit, the Women and Child Development Ministry organised a G20 Ministerial Conference on Women Empowerment that saw participation from Women and Gender Equality Ministers from across G20 and guest countries. At this meeting, there was a panel discussion dedicated to “Approaches and Recommendations for the Care Economy” where AVPN shared the social investor’s perspectives about investing in the care economy. We shared our perspectives as reflected in the knowledge paper that we have been developing for investors and policy-makers to understand the opportunities and pathways in driving investment into the care economy.
Recognising the potential of the care economy
Unpaid care work is a significant barrier to women’s participation in labour markets, which in turn impacts pay equity. This labour also leaves out several women from the formal economy and adversely affects their employability, development, and financial independence. In India, the deployment of women in domestic workplaces their contributions outside the realm of economic production as measured by the government. At the global level, the International Labour Organisation (ILO) has estimated that investments in universal childcare and long-term care services have the potential to generate up to 299 million jobs by 2035, of which 78 percent are expected to go to women. This finding has also been echoed by the State Bank of India’s Ecowrap, where it was calculated that the total contribution of unpaid women to the economy is around INR 22.7 lakh crore (rural: INR 14.7 lakh crore and urban: INR 8.0 lakh crore), which is almost 7.5 percent of India’s GDP.
Taking steps toward strengthening the care economy through collaborative action
Care work has emerged as one of the biggest barriers to women’s participation in the labour force. In a country where women spend around six hours every day on unpaid care work, preparing food, cleaning, and providing childcare, we need to prioritise both public and private investments in care infrastructure. Given the scale of challenges facing the care economy, we need to tap into and mobilise the full spectrum of capital, from grants to social investment to impact investing to ESG investing. It is essential for the different types of capital to work together through blended finance.
While the social investment community is looking to invest in the care sector, a key concern is the need to identify entry points for investments and how they differ from sector to sector. Further, there is no standardised method/framework for measuring impact within the care economy. The investment community calls for conclusive data that clearly defines the particular gaps that need investment. This data would open doorways for more dialogues, which can lead to partnerships between the private sector (enterprises and investors) and the public sector to scale the activities of effective care economy enterprises and shape a more favourable and responsive policy environment to address the care crisis.
Lastly, definitive information has the potential to shift the perspective of the investor community toward viewing investment in care as an economic opportunity rather than a mere expense. To facilitate this shift, policymakers should consider treating the care economy as a distinct foundation within the broader ecosystem rather than approaching it as a multifaceted aspect. This approach would not only aid in tackling precise financial shortfalls and advocating for improved regulations but also in generating data that could empower the social investor community to increase their contributions to this sector.
(This article is authored by Deborah Foo – Platforms Manager, Gender – AVPN)
