The World Trade Organization (WTO) reports that women are more likely to be negatively affected by COVID-19-related business disruptions than men, particularly in least developed countries (LDCs) and developing countries. The briefing note highlights how the effects of the pandemic are exacerbating existing vulnerabilities.
La note entitled, "The economic impact of COVID-19 on women in vulnerable sectors and economies"uses employment data from the World Bank's Enterprise Surveys, monthly merchandise export data, and services statistics to estimate the risk of business disruptions for men and women. Authors note that COVID-19 is “having a different impact than previous global crises”, which have generally had a greater impact on men's employment because men tend to work in sectors more exposed to economic cycles. The COVID-19 recession, on the other hand, is having a greater impact on women because the sectors in which they work are most affected by lockdown and distancing measures.
Many of the channels through which COVID-19 is having a greater impact on women are those that are at the heart of gender inequalities.
The note highlights that a higher proportion of women work in sectors and companies that have been particularly affected by the pandemic, increasing the risk to women posed by business disruptions resulting from the COVID-19 pandemic. For example, women make up a larger share of the workforce in the manufacturing industry, including clothing, footwear, textiles and telecommunications, sectors that have experienced some of the largest declines in export growth. Women make up 80% of Bangladesh’s ready-made garment production workforce, an industry that saw a 45,8% decline in orders in the first quarter of 2020.
Women are also disproportionately present in the informal sector, participating in activities that cannot be done remotely. or employed in sectors that are highly exposed to international travel restrictions. Furthermore, the paper notes that existing gender gaps in education, information technology (IT) skills, income, access to finance and childcare responsibilities put women at a greater disadvantage during the COVID-19 pandemic.
The WTO note concludes that the effects of the pandemic are "exacerbating existing vulnerabilities" as Many of the channels through which COVID-19 has a greater impact on women are “at the heart of gender inequalities”, such as lower wages for women, fewer educational opportunities, greater reliance on informal employment, limited access to finance and social constraints. Women’s lower IT skills rates and limited access to digital technologies also affect women’s opportunities for teleworking and e-commerce, further limiting their ability to adapt to the COVID-19 crisis. The note warns that income loss due to the COVID-19 recession “may further increase poverty among women.”
The paper proposes ways in which government policies could mitigate the gender-specific impacts of COVID-19, including by maintaining open markets to build faster and more inclusive growth. The note also recommends implementing appropriate educational and labor policies and aiming for legal and social reforms. to support workers, merchants and consumers.
The document also highlights the findings of a WTO and World Bank report on ways to ensure that women continue to benefit from trade after the pandemic. The publication shares how trade can expand the role of women in the economy, which can be linked to higher levels of gender equality, higher wages, better working conditions and greater access for women to education and skills.
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