Repercussions of the Economic Crisis on Women in the European Labour Market

The impact of the economic downturn continues to unfold with pressure on global financial markets, increasing unemployment, and weakening of major industrial sectors. Data from across the EU shows a rise in unemployment for both men and women.

The prognosis is for further deterioration in the labour market expected in the months ahead, resulting in about 8½ million job losses over two years. ¹

Initially, the unemployment rate at the EU level rose more rapidly for men because male-dominated sectors of industry (construction, transport and manufacturing) were affected right at the beginning of the downturn. However, female unemployment rates have recently been growing at the same pace as male rates, reflecting an extension of the crisis to other more gender-mixed sectors. It is expected that budget cuts planned for 2010, mainly in the  female-dominated public sector, will further lower women’s employment. Reduced tax revenues and budget cuts will lead to reductions in public expenditure in education, training and social care. Public sector employees, as well as users of those public services (which include a large concentration of women), will likely be affected. Gender-based stereotypes may also reinforce inequalities. For example, in those countries where “a male-breadwinner model” still predominates, a priority may be to keep men’s jobs, with women providing a social safety net through informal paid and unpaid work. ²

Past crises show that women face a higher risk of remaining unemployed and are also harder hit by unemployment because they generally have a weaker position in the labour market. ³ First, women are more likely to have part-time jobs, work in lower-paid sectors and in positions with lower responsibility. As such, they may have a reduced ability to re-enter the job market and build up financial reserves to cope with job loss. Furthermore, they are also more likely to be excluded from unemployment benefit schemes due to insufficient contributions. Lack of access to care services for dependent persons (children, disabled, elderly) also hinders women from having a better position on the labour market.

Moreover, gender equality measures prepared by the national governments of EU member states have been canceled or delayed as a part of the response to the challenges of the crisis. These state policies can directly or indirectly affect gender equality.

The effect of the crisis on women and men depends on their position within social and economic spheres. The different impact on women and men (as well as on other groups among women or men) must be taken into account and addressed in national, EU and global policy responses.

Is the economic and financial crisis affecting women more than men in your state?

Does your state limit public expenditure on initiatives promoting gender equality due to the economic downturn?

- Katerina Veverkova