This recession isn’t like the others, it’s a ‘she-cession’

Illustration by Ira Colendrino.

It’s quite possible that women are facing the harshest economic times in modern Canadian history. The COVID-19 pandemic created a perfect storm that placed numerous barriers in the way of women gaining and maintaining employment. 

From women-dominated industries seeing some of the strictest shutdowns and subsequent restrictions to the childcare burden working mothers are facing, women are likely to feel the negative effects from this recession for years to come.  

A brief history on Canadian recessions 

The COVID-19 has unequivocally impacted how society conducts their daily lives, from keeping a mask handy to hopping on video chats. Within a matter of days, the “normal” Canadians have come accustomed to was flipped, kids were sent home from school and many businesses were forced to temporarily closed and Canadians were temporarily or permanently laid off. As health and business restrictions begin to lift across Canada, the country is on its way to a “new normal.” What is uncertain is what the “new normal” will look like. 

In May 2020, Canada entered a recession due to the economic impacts of COVID-19 pandemic. While there is no concrete definition of what constitutes an economic recession, it is typically characterized as two consecutive quarters of national gross domestic product (GDP). 

Each economic recession has its own attributes. In 2009, Trish Hennessy and Armine Yalnizyan of the Canadian Centre for Policy Alternatives coined the term “he-cession” to describe the 2008-09 Canadian recession. While the economic impact of the late 2000s impacted all corners of the country and all walks of life it primarily impacted men. 

In the 2008-09 recession, men’s unemployment rate was 9.2 per cent compared to women’s 6.8 per cent. This was the largest gender gap in unemployment seen in Canada since Statistics Canada collecting gender unemployment numbers in 1976. The difference was primarily attributed to the manufacturing and construction industries facing the bluntest hit of the economic downfall. 

Cue the 2020 ‘she-cession’

The 2020 recession brings forth a similar gender disparity of unemployment as seen in previous recessions. Instead, this recession is being dubbed the ‘she-cession,’ This is the first ‘she-cession’ that Canada has faced. 1.5 million women lost their jobs in the first two months of the pandemic. Typically, when the economy declines men-dominated industries like manufacturing are hit first, and women-dominated industries like the service industry see stable employment numbers. 

The COVID-19 lockdown caused unprecedented economic burden on women with little to no notice. Within the first weeks of the government mandated shutdown ordered non-essential businesses to close. Industries like retail pivoted to online platforms, temporarily shutting down physical stores. Restaurants closed dine in and opted for the approved take-out only option. 

The economic losses are not limited to these two industries. Other women-dominated industries like childcare, and hospitality were among industries who faced a significant industry shutdown. 

As similar to the 2008-09 recession, the manufacturing and construction industries also played a key part in job losses. However, when a “he-cession” a “she-covery” typically follows with women increasing their workforce participation to assist with household income.

The “he-covery” is less likely to spring the economy back to its liveliness pre-COVID-19 shutdown. Men are more likely to go back to work or gain employment faster than women. Typically, men-dominated jobs are easier to maintain social distancing and require less social interaction. Industries like construction that have a 12.1 per cent women workforce have workplaces that are much more easy to distance than sales and service which employes about a third of all Canadian women. More so, many businesses that primarily employ women are not able to reopen due to a lack of business. 

Women’s work from home includes a lot more work 

Regardless of whether a woman is in a women or men orientated job, many working mothers face difficult times during this economic turndown. For a lot of them, childcare was absolutely necessary to be able to work, whether that be from a work-from-home situation or physically going to workplaces. 

There is an implicit belief that when schools closed, and children started to be at home full-time and parents began working from home, life would continue as it did. However, it did not. Parents, particularly mothers engaged in ‘pandemic parenting,’ around the clock. Work and homelife became in direct conflict. Prior to the pandemic, women took on most of the caregiving responsibilities and domestic tasks. It’s fair to say that when the world shut down, mothers also became a teacher and a child’s playmate in addition to their realm of existing responsibilities. Then again, a mother's time spent on work dropped about 4 times the amount of fathers with the same age of kids. 

Deputy Prime Minister Chrystia Freeland recognized early in the stages of re-opening that childcare needed to re-open because it’s “impossible” for mothers to go back to work without it. 

However, with childcare centres re-opened in May, there is still an immediate threat that daycares or schools could close again placing children back into a home. While both parents are home, having to look after small children again becomes a difficult task. If a mother decides to go part-time, take a leave, or quit their job entirely to take care of their children, it can have hardships on their career and slow the economic recovery. 

Automation is accelerating 

Even while businesses reopen there is a need to increase social distancing and decrease human interaction. For example, companies like Starbucks have been encouraging use of their mobile ordering function to reduce face-to-face contact. 

It’s cool to think we are living in the future. We can order our morning coffee at the touch of our fingertips. Automation in the labour force was expected in the decades to come, however, the COVID-19 pandemic accelerated it. 

It’s still difficult to predict or understand if the increase in automation will positively or negatively affect human jobs. Statistics Canada has outlined several job categories that are of higher risk of being replaced by automation (i.e. robots, computer software, or artificial intelligence). 35.7 per cent of office support positions (office clerks, secretaries) are at high risk of being transformed due to automation. Coming in second place are service supervisors and specialized service occupations (restaurant supervisors, accomodation supervisors) which have a 20 per cent chance of being transformed. A high proportion of the work population of these groups are industries. 

A look to the future 

Women are substantially impacted by this recession. Perhaps your quarantine involved some self-reflection on work or future plans. If you’re in school, you might have thought about what your career will look like. If you’ve already started your career, you may be wondering what work life will look like in the months and years to come. It’s difficult to understand how the current economic situation will fold out as we’re in the middle of it. 

Wherever you are in your career, one good way to cope is to consider how you can be flexible and endure times like this. Think about the ways you can refine and offer your skills elsewhere. Whether it’s working on passion projects, starting a side hustle, or taking an online course through MOOCs, equipping your toolbox with more skills is one way to improve. It won't be easy but hey, at least you’re thinking outside the box.

For now, we can expect what policies and interventions that come forth in the coming months will be paramount to decelerating the set-back women are facing in the labour market and industry.