New studies reveal the severe impact of the pandemic on the gender pay gap and the lengthy recovery expected.

The past year has been tough for many, but for women in the workforce, it’s been particularly frustrating. Millions of women lost their jobs during the pandemic, significantly widening the gender pay gap.

In December 2020, 140,000 jobs were lost, all of which, according to an analysis from the National Women’s Law Center, were held by women. Of the 9.8 million jobs lost since February, women accounted for 55%, based on data from the Bureau of Labor Statistics. A report from The Washington Post stated that 1 in 4 women who lost jobs cited a lack of child care as the reason — which is twice the rate of men. In total, women have lost 5.4 million positions during this recession — 1 million more than men.

Take a moment to let that sink in. Feeling better? Me neither.

Additionally, research from Northwestern University indicates it may take 20 years for the gender pay gap to return to pre-pandemic levels. This isn’t about closing the gap completely; this is merely about returning to a gap that was still unacceptably large as we entered this decade.

“The pandemic has disproportionately affected women, impacting the gender pay gap,” states Tanya Jansen, co-founder of beqom, a platform focused on HR and sales compensation.

Why the 20-Year Delay?

According to Jansen, if someone leaves the workforce for a year or more, their re-entry salary is typically 7% lower than that of candidates already employed. With women having faced greater job losses, it will be even harder for them to return with the same pay they earned previously.

This reality is deepening the existing pay gap. Men already earn more than women on average, so if women must accept lower compensation to rejoin the workforce, the gap will widen even further.

Back To 1988

“Women currently earn 76 cents for every dollar men earn,” explains Katica Roy, CEO of Pipeline. “Women’s labor force participation rates have reverted to 1988 levels, and pay equity is back to 1998 rates. After recovering from this lost progress, we will still be 257 years away from achieving economic intersectional gender equity.”

This regression is hindering overall equality and reversing advances toward pay equity, Jansen notes. Economists predict that the employment decline among women could widen the pay gap by as much as five percent.

“While the current projections may seem disheartening, they don’t have to define our future,” Jansen encourages. Achieving change will require significant effort and collaboration.

Fair Compensation

Research from beqom indicates that over a third of employees feel their companies do not compensate staff fairly. More than half of these individuals would consider leaving for a role that offered greater pay transparency. Alarmingly, 40% expressed dissatisfaction with how their companies handled the COVID-19 crisis.

“As organizations prepare for the remainder of 2021 and a post-pandemic reality, it’s essential to create clear compensation packages that articulate how salaries are determined and how performance is linked to pay,” Jansen suggests. “By enhancing compensation transparency and using technology rather than emotion in decision-making, companies can work towards closing pay gaps and fostering equity.”

We also hold the power to shape our futures. “We can determine what our post-pandemic economic recovery looks like,” Roy states. “Choosing to promote intersectional gender equity could unlock $2 trillion in value for the US economy and facilitate a robust recovery.”

This pay gap has sparked renewed activism among employees demanding pay equity, which may hasten the closure of the gender pay gap. The new administration has pledged to introduce legislation aimed at promoting pay equity and prioritizing gender and racial equality.

Taking Action

You are one individual, and your focus should be on your own career and pay. If you find yourself unemployed, begin your job search. Update your resume to highlight your achievements and what you can bring to a new role. Once you secure a position, remember to negotiate your salary — don’t settle for the average 7% less.

If you're currently employed and feel it’s time for a raise, initiate that discussion. You deserve to be paid appropriately for your contributions, even amidst a global pandemic.

If you feel secure in your position but are troubled by these statistics, speak up! Advocate for others and encourage friends in different workplaces to do the same. Change starts with one person, and you have the ability to be that person.

“The growing intersectional gender pay gap should alarm everyone, as it costs billions each year. Conversely, addressing this gap could boost the US economy by $512 billion and drastically reduce poverty rates among working single mothers,” Roy emphasizes. Consider that.