Why caring about the care economy is key to growth and well-being

The care economy is at the core of growth, well-being and human development because it sustains human activity for current and future generations. Estimates show that unpaid care work, if compensated, would represent 9% of global gross domestic product (GDP), equivalent to $11 trillion.

In Latin America alone, it would signify between 15.7% and 24.2% of regional GDP, constituting one of the largest contributors to the economy over most of the other individual industries.

Yet despite the importance of care, the social and economic value of the care economy remains mostly invisible. Care is what makes all other jobs possible, as it encompasses relationships, services and both paid and unpaid work that make lives possible.

Individuals in formal sector employment in companies and governments, for example, can work because children, older adults and their loved ones in need of care are being cared for. If this care work did not take place, it would be virtually impossible to be employed outside of the home.

Not only is care indispensable for the rest of the economy to work, care work in and of itself is an untapped source of employment which is growing. Investing in care creates jobs.

According to the World Economic Forum’s The Future of the Care Economy report, a $1.3 trillion investment in social jobs such as the care economy would result in a $3.1 trillion GDP return and the creation of more than 10 million jobs in the US.

As fertility rates drop and longevity increases, a larger population of older adults will need care givers and services.

The burden of both paid and unpaid care work falls disproportionately on women, constituting one of the main drivers of inequality. Women globally spend on average, three times more hours than men on care work, but this figure hides differences between countries.

In some Latin American countries, this gap widens, with women spending up to seven times as much time on unpaid domestic and care tasks. In other developing economies, such as India, women dedicate eight times more hours than their male counterparts to these tasks.

Due to such unequal distribution, care also represents one of the main obstacles for women to achieve full participation in the economy, because the care burden limits their time in the labour market. Care is considered a responsibility of households and, within them, of women, and is therefore taken for granted as an exclusively “women’s issue”.

Unless we distribute care more equitably and overcome the idea of women as “natural” care givers responsible for most aspects of the paid and unpaid care workload in households and in the workforce, gender inequalities will persist in households and in the labour market.

We need to close the gender gap to make care work decent and to ensure a future of decent work for men and women. But we must also acknowledge that we will not grow unless we do so: closing gender care gaps would generate significant economic returns, and further boost employment, consumption, tax revenues and growth levels.

Incorporating men into care giving tasks is indispensable to break gender stereotypes and socially assigned roles and enhance women’s access to opportunities. Women will be left behind if they are not released from the time poverty that leaves them with limited or no time to study, go to the doctor, work outside of the home, exercise or participate in any activities that are not domestic or care related.

Here’s what we need to do about the care economy if we care about growth, well-being and human development.

We must prioritize the care economy at the macroeconomic, policy and cultural levels. If we do not address the care economy directly, every other investment and effort is bound to fail.

The success of this holistic and integral approach to the care economy depends on government, businesses and communities working together. To attain equitable and sustainable growth we need to guarantee the right to care and the right to receive care.

The authors appreciate the contribution of Sofía Fernandez Crespo, Chief of Staff at CIPPEC, to this article.

Gala Díaz Langou is a member of the Global Future Council on the Future of Growth and Diana Rodriguez Franco is a member of the Global Future Council on the Future of the Care Economy.