- Women lose jobs and take on more unpaid care as debt rises
- Over 38 million women’s jobs could be lost in the long term
- Women’s income drops by 17 per cent while unpaid work increases
Women are bearing the brunt of rising debt and global economic instability, according to new research from the United Nations Development Programme. The study, which analysed data from 85 countries over three decades, finds that when governments increase spending on debt repayments, women are more likely to lose jobs and take on additional unpaid care work at home.
The report estimates that rising debt burdens have already led to the loss of 22 million women’s jobs in the short term and more than 38 million over time. In countries facing higher debt pressure, women’s income per capita falls by around 17 per cent, while men’s income remains largely unchanged. As Alexander De Croo reportedly said, cuts to social spending disproportionately affect women because they rely on and work within those sectors.
Why this economic crisis hits women differently
Across developing economies, debt levels have been rising steadily. Even before the latest geopolitical tensions, 56 countries were spending more than 10 per cent of their government revenue on debt servicing. As global interest rates rise and currencies weaken, governments are left with fewer resources to spend on public services.
This creates a chain reaction. Public services shrink, household costs rise, and unpaid work increases. While the crisis affects entire populations, the structure of labour markets and social roles means women end up absorbing a larger share of the impact, often without visibility in official data.
1. Public spending cuts shift care work into homes
When governments cut budgets to manage debt, sectors like healthcare, childcare and social welfare are affected first. These services do not disappear. They move into households. Women step in to provide care that was earlier supported by the state, increasing unpaid work hours significantly.
2. Job losses hit women-heavy sectors first
Education, healthcare and social services employ a higher proportion of women and depend on public funding. When spending is reduced, these sectors contract. Women lose stable, paid jobs and often end up doing similar work at home without income.
3. Rising debt leaves governments with limited choices
With over 10 per cent of revenue going towards debt repayment in many countries, governments are forced to prioritise financial obligations over social investment. According to the UNDP, this reduces spending on programmes that directly support women’s employment and wellbeing.
4. Women’s income drops sharply under debt pressure
The data shows that moving from moderate to high debt levels results in a 17 per cent decline in women’s income per capita. Men’s income does not show the same drop. This widens the economic gap and limits women’s financial independence.
5. Daily survival becomes more time-intensive
Rising food and energy costs increase the amount of work required to manage a household. Cooking from scratch, budgeting tightly and reducing waste all take time. These tasks are usually handled by women, adding to their unpaid workload.
6. Global supply shocks increase pressure at home
Disruptions in energy and fertiliser supply, including those linked to the Strait of Hormuz, are pushing up food production costs. As prices rise, households compensate through more labour at home, especially in food preparation and care.
7. Long-term job losses reduce economic participation
The loss of 22 million jobs in the short term and 38 million in the long term suggests that many women are not returning to the workforce. Extended periods outside paid employment reduce future earning potential and career growth.
8. A reinforcing cycle deepens inequality
As inflation rises and currencies weaken, governments cut spending further. This increases unpaid work, reduces women’s income and limits economic participation. The cycle repeats, making each crisis more damaging for women than the last.
This is the part of the economy that rarely gets measured properly. The numbers show job losses and income decline. What they often miss is the steady increase in unpaid work that fills the gap left behind.
