From jobs to pay, the coronavirus pandemic has hurt women

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One year into the coronavirus pandemic, women are not OK.

More than 2.3 million have left the workforce since February 2020, bringing their labor participation rate to levels not seen since 1988, according to the National Women’s Law Center. In December alone, women accounted for 100% of the jobs lost.

Whether they have been laid off or had to leave to care for children home from school, many are struggling to make ends meet. In fact, 1 in 4 women are considering leaving the workforce or downshifting their careers, according to a September “Women in the Workplace” report from Lean In and McKinsey & Company.

The implications are far-reaching — and could result in a widening of the gender pay gap, said Emily Martin, vice president for education and workplace justice at NWLC.

“Long-term employment, as well as leaving the labor force entirely for a spell, that is certainly going to show up in wages once you are again employed,” she said.

The headwinds against women are just increasing in strength, and women are just continuing to fall behind.

Stacy Francis

CEO of Francis Financial

‘This is temporary’

Deborah Irlanda arrived in Providence, Rhode Island, in 2017 with just one suitcase. She had lost everything when her home in Puerto Rico was destroyed by Hurricane Maria, and she was hoping to start anew.

When the pandemic hit, Irlanda was a cook — working full time in the cafeteria of a Rhode Island hospital, as well as a local restaurant. The eatery immediately shut its doors, and her hours at the hospital were cut in half. By September, she was unemployed.

Fortunately, Irlanda, 48, was able to get a $1,500 Covid crisis relief loan from a local community development financial institution, Capital Good Fund, to enable her to move out of her rented apartment and in with a friend.

“This is temporary; I cannot keep staying here,” said Irlanda, a single mother to two adult daughters. She’s now training to become a community health worker.

Irlanda’s situation is far from unique. The restaurant industry, in which a majority of the workers are women, has been slammed by the pandemic.

“A lot of the jobs that have seen the biggest job losses during Covid are where women are the majority of workers,” Martin said.

‘Our income has been cut in half’

For 39-year-old Martha Wade Chaires, there was really no other choice but to step away from work when the pandemic hit.

Her 5-year-old son is medically fragile and has Down Syndrome.

“My son’s pulmonologist called and said we needed to keep him out of the world for the foreseeable future,” said Chaires.

At the time, she owned a mobile dance studio that taught pre-K students.

“Our income has been basically cut in half,” Chaires said.

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“We have been really really tight with our spending,” she added. “We only buy groceries and gas.

“I’m worried about when we do go back out in the world.”

Women are the ones who typically step away from work during a caregiving crisis, Martin said.

Not only is there generally an inequity in gender roles at home, with women still holding the lion’s share of family caregiving, but women tend to make less than men.

“The headwinds against women are just increasing in strength, and women are just continuing to fall behind,” said certified financial planner Stacy Francis, president and CEO of Francis Financial, a New York-based wealth management practice dedicated to services for women.

What can be done

To close the retirement savings gap, you may have to change your mindset, if you still have an income, said Francis, a member of the CNBC Financial Advisor Council.

“We often see that women tend to be a little more conservative with investment portfolios than men,” she said. “Unfortunately that can put us further behind.”

The easiest thing to do is come up with a percentage of your income you want to save. While most financial advisors recommend 15% to 20% of your after-tax paycheck, start with what you can do. As you get raises throughout your career, then you can increase it.

If you have no income, your goal should be staying out of high-interest credit-card debt.

“When the dust settles from Covid, we are going to see the numbers of debt loads being carried by women higher,” Francis said.

“We don’t see all the impact of Covid right now,” she added. “We are going to see it in a year or so.”

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