Return of the “pink recession”?

Advertisement

When the COVID-19 pandemic first broke out, Australia’s mainstream media and left-wing think tanks claimed we were in a “pink recession” – the notion that women were being economically impacted by the crisis far worse than men.

This “pink recession” claim was first forged by commentator George Megalogenis, who noted that unlike the 1980s and 1990s recession in which men lost three-quarters or more of jobs, more than half of the victims this time around were women.

The claim was followed by demands from women’s groups that the federal government provide them with more budget support.

The narrative shifted later in the year when Labor frontbencher Clare O’Neil warned that Australian men faced a “tsunami” of unemployment in the year ahead:

Advertisement

Ms O’Neil, citing research from consultant group McKinsey, warns that some of the worst hit sectors running into March next year are set to include construction (88 per cent male), manufacturing (73 per cent male) and professional services (lawyers, consultants – of which 57 per cent are male)…

The research estimates that when JobKeeper and JobSeeker are withdrawn, just under half a million jobs will be lost – with more than 60 per cent of those held by men, according to analysis cited by Ms O’Neil.

Now the narrative has shifted back again, with the lead economist for Equity Economics, Angela Jackson, claiming that university-educated women have been hit far worse by the pandemic than university-educated men:

“It could be what we are seeing is discrimination,” she said.

“It could be that firms are more likely to let young women go than young men.

“We are actually seeing women with bachelor’s degrees and above doing far worse in the labour market than young men”…

Dr Leonora Risse, a lecturer in economics at Melbourne’s RMIT University… “The gender biases that exist in society and the workplace have been amplified by the pandemic.

Advertisement

The actual macro data does not support the notion that women are being disproportionately impacted by the pandemic.

The Australian Bureau of Statistics (ABS) weekly payroll jobs data shows that men have lost more jobs and suffered bigger pay declines since the pandemic began in mid-March:

Advertisement

The ABS’ monthly labour force release also shows that women have lost fewer full-time jobs than men:

And virtually the same number of total jobs:

Advertisement

Regardless, identity politics is an unwanted distraction that should be left out of policy debates. It divides more than it unites.

Policy makers should instead focus on eliminating poverty and improving equity, irrespective of gender. This is the key area of concern in Australia, especially with the JobSeeker coronavirus supplement due to end in late-March.

There are many poor men doing it hard in Australia just as there are many poor women. Policy makers should focus on lifting them all up, not favouring one group over the other.

Advertisement
About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.