11 Ways the Current Economy Impacts Women

According to the World Economic Forum’s Global Gender Gap Report 2025, the overall global gender gap has narrowed to 68.8%. At the current rate of progress, achieving full gender parity worldwide is projected to take another 123 years. 

The economy doesn’t just move numbers on a spreadsheet; it moves people’s lives. For women, those ripples often turn into waves that shape careers, choices, and independence. The current global economy has exposed long-standing inequalities, showing how progress in one area can still hide deep structural gaps in another.

At the same time, this moment reveals a complex mix of progress and stagnation. The pay gap, caregiving pressures, and digital exclusion still shape women’s financial lives. Yet there’s room for growth if societies truly value women’s work, health, and leadership. Let’s break down 11 ways this economic landscape is reshaping women’s realities and what that says about where we’re headed next.

Persistent Gender Pay Gap and Slow Progress

It’s 2025, and women still earn less for the same work. It will take years to close the gender pay gap if progress continues at today’s pace. On top of that, mothers face a “motherhood penalty,” losing about 15% of earnings per child under five.

These systemic pay differences ripple through retirement savings and financial security, creating long-term inequalities that are easy to ignore until they hit home.

Disproportionate Job Losses in Female-Dominated Sectors

When the economy struggles, women’s jobs are often the first to go. The pandemic’s aftermath hit industries like hospitality, retail, and healthcare hardest, all of which are dominated by women.

The ILO (2021) analysis found that women lost 64 million jobs globally in 2020, while men saw only a 3.9% job loss rate. Recovery has been slow and uneven, leaving many women working twice as hard to rebuild their livelihoods.

Underrepresentation in High-Growth, High-Tech Industries

Here’s the irony: the jobs of the future aren’t built for everyone yet. Women remain underrepresented in fast-growing fields such as IT, AI, and engineering. Even though STEM sectors are booming, women’s participation still lags.

This imbalance means fewer female voices shaping the innovations that define tomorrow’s economy, a gap that limits both equality and progress.

Unpaid Care and Domestic Work Burden

Unpaid doesn’t mean unimportant, but try convincing the global economy of that. Women perform 2.5 times as much unpaid care work as men, balancing childcare, eldercare, and household tasks.

During economic crises or climate shocks, that burden increases even more. The UN notes that this unpaid workload restricts women’s ability to participate fully in paid employment, reducing visibility and value in traditional economic measures.

Impact of Motherhood and Caregiving Responsibilities

The cost of caring shouldn’t be career stagnation, yet it often is. Many women step back from full-time work to manage caregiving responsibilities, leading to employment gaps and slower advancement. Caregiving roles can derail lifetime earnings and limit leadership opportunities.

These interruptions reinforce economic dependence, even among highly skilled professionals.

Health Disparities Affect Economic Participation

Living longer doesn’t always mean living better. Women live longer than men but spend 25% more years in poor health, partly due to medical research that still focuses heavily on male biology.

McKinsey Health Institute estimates that improving women’s health could add $1 trillion to global GDP by 2040. Better health means higher productivity, stronger workforce participation, and greater economic resilience.

Digital Gender Divide and Economic Exclusion

In 2025, internet access should be basic, not a privilege. Millions of women, especially in developing nations, still lack access to digital tools, training, and e-commerce platforms.

Without inclusion in the digital economy, women face reduced competitiveness in a world where connectivity drives opportunity.

Slow Gains in Female Workforce Participation and Leadership

Education levels are rising, but boardroom doors remain half-shut. Around 30% of managerial roles globally are held by women, despite record-high graduation rates among female students.

The statistics show that while talent pipelines are strong, systemic barriers continue to block progress. The result is lost innovation and wasted potential across industries that desperately need diverse leadership.

Economic Gains from Gender Equality

Here’s the good news: equality makes money. In the UK, progress toward gender equality since 2011 has added about £6.2 billion (roughly $7.8 billion) to GDP each year. Gender-diverse workforces are more creative, better balanced, and more productive. Inclusivity isn’t just the right thing to do; it’s a proven economic strategy.

Economic Vulnerability and Extreme Poverty

The numbers are harsh but impossible to ignore. If current trends continue, 351 million women and girls could still live in extreme poverty by 2030. Food insecurity, unequal healthcare, and limited education access deepen the cycle of poverty. Organizations such as Generation Ghana emphasize that targeted investments in women’s empowerment are the only way to reverse these projections.

Investment in Women Drives Overall Economic Growth

If you want to fix the economy, start with women. Removing barriers to women’s participation boosts growth across all sectors. Investing in women’s leadership, entrepreneurship, and participation creates compounding benefits, from improved child welfare to stronger local economies. It’s not just moral progress; it’s smart economics.

Disclaimer- This list is solely the author’s opinion based on research and publicly available information. It is not intended to be professional advice.

Disclosure: This article was developed with the assistance of AI and was subsequently reviewed, revised, and approved by our editorial team.

Why investing for retirement is so important for women (and how to do it)

Why investing for retirement is so important for women (and how to do it)

Retirement planning can be challenging, especially for women who face unique obstacles such as the wage gap, caregiving responsibilities, and a longer life expectancy. It’s essential for women to educate themselves on financial literacy and overcome the investing gap to achieve a comfortable and secure retirement. So, let’s talk about why investing for retirement is important for women and how to start on this journey towards financial freedom.