Equity and inclusion in the face of inflation
Progress on closing the gender gap has stagnated in the wake of inflationary pressures, according to the Bank of America Institute. Why? One reason appears to be that women are less likely to receive pay raises that keep up with inflation.
Women are also disproportionately impacted by rising health care and child care costs. According to the Consumer Price Index, day care and preschool costs have increased by more than 10% since the pandemic started, leaving families with few affordable options. Often, a family member will have to assume full-time caregiving responsibilities, with women more likely than men to serve in that role. And as women reduce their work hours or exit the workforce to care for children at home, it affects their ability to earn wages and advance their careers.
Companies that offer benefits such as paid parental leave, child care and flexible work options can help employees manage the impact of inflation. And since women are more likely to benefit from these programs, they can also help support gender parity. Offering these types of programs can also help employers attract and retain employees.
Read the full Bank of America Institute report for insights that can help inform workplace programs that promote financial well-being across employee demographics.
Source: Bank of America Institute, DEI in the face of inflation, March 2023.