2025 could bring stagflation into the economy.
Stagflation, a grim economic cocktail of stagnant growth and high inflation, can disrupt the financial fabric of any society, but the impact on women is often underexplored. From purse strings to job opportunities, we’ll dissect six ways stagflation can affect women and what it could mean for their financial and social standing.
Job Market Pressures: A Double Squeeze on Employment
In a stagflation scenario, job markets are notoriously tight. Typically, women face steeper odds of finding employment than men—these odds can double during an economic downturn.
With fewer job opportunities and higher competition, women’s unemployment rates can spike, exacerbating income disparities and reducing financial independence.
The job market pressures aren’t just statistical; they play out in myriad day-to-day challenges. For example, women might find it more difficult to secure part-time work market pressures aren’t just statistical; they play out in myriad day-to-day challenges. For example, women might find it more difficult to secure part-time work to fit around caregiving responsibilities or might be at higher risk of losing their jobs due to employer cutbacks on roles frequently held by women, such as retail or service industry positions.
Purchasing Power: The Struggle to Afford Basic Necessities
High inflation during stagflation means the cost of goods and services will rise significantly. This can especially impact low-income households, where women are often the primary earners.
With rising prices, women may struggle to afford necessities such as food, housing, and healthcare. This can make them vulnerable, making it difficult to choose between paying for essential items or meeting other financial obligations.
Moreover, the increase in prices of goods and services can also disproportionately affect women-owned businesses. As they face higher costs for supplies and materials, it becomes more challenging to remain competitive. This can lead to business closures, job losses, and declining economic opportunities for women.
Impact on Education and Career Advancement
Stagflation can also hurt education and career advancement for women. With limited job opportunities and lower wages, it becomes increasingly difficult for women to invest in their education and professional development.
Inflation can also make it more challenging for families to afford higher education for their children, limiting the opportunities available to women in future generations. This perpetuates the cycle of limited economic mobility for women.
Additionally, during stagflation, employers may be less likely to offer salary increases or promotions due to rising costs. This can further impede women’s career advancement and lead to a widening gender pay gap.
Stagflation can severely affect women’s financial stability and career opportunities. It is essential to address economic inequalities and implement policies that support women’s economic empowerment to mitigate the negative impacts of stagflation on women. So, policymakers must proactively tackle stagflation and its implications for women to build a more resilient and sustainable economy. Votes matter.
