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How rising inflation is hurting working women in the Middle East

Experts give possible solutions to women’s career development.

How rising inflation is hurting working women in the Middle East
[Source photo: Chetan Jha/Fast Company Middle East]

The World Economic Forum states that closing the gender pay gap in the Middle East will take 115 years. While women are employed in roles where their male counterparts are paid more, high inflation also disproportionately hurts them.

Like the jump in childcare prices has started to pressure women as inflation outpaces salary increases. While women are paying more, they also earn less. 

The WEF notes that, in the MENA region, the average participation rate of women in the labor force is 31% and in six countries women’s pay is on average, less than a quarter of what men make.

“My salary of 12,000 AED per month covers exactly childcare costs paired with rent and utility costs, leaving nothing for me to save,” says a working mom in the UAE, adding that her salary has not changed since pre-COVID levels, and the cost burdens have only gotten worse.

“The effect of inflation on women’s salaries and childcare costs is particularly challenging, and strategies to overcome it will be a mixture of increasing salaries or reducing the spending on childcare,” says Dr. Steven Glasgow, Associate Professor of Human Resource Management at Edinburgh Business School, Heriot-Watt University Dubai.

Rising childcare costs can both keep and push women out of the workforce, undoing progress made in recent years to close gender parity. 

While inflation is not going away anytime soon, Marilyn L. Pinto, founder of KFI GLOBAL, says working mothers can adapt by ensuring their money is invested correctly. “Understanding how it works and how to beat it with smart investing strategies is the best way to deal with and adapt to inflation.” 

WHAT CAN BE DONE?

Comprehensive social infrastructure changes are critical to rectifying some of the damage inflation does to working women’s economic health and opportunity.

Experts say flexible work hours, paid maternity leave, affordable child care, and generous family leave policies are part of the solution to the ongoing inflation that is overhanging women’s lives. 

“There needs to be a cultural shift in that women can have careers and that home responsibilities, including caregiving, should be equal between men and women,” says Emma Burdett, a gender equality expert and the CEO of Women In Leadership Deliver.

An equal distribution of caregiving and domestic labor in the household would lessen pressure on women and provide more time for them to focus on their career progression. However, for this to occur, organizations must adjust their structures by becoming more open to requests for flexible working for men or providing extended paternity leave. 

Burdett says women often have people-pleasing tendencies, which exacerbate the problem. They are afraid to speak up and ask for what they want, such as desired salary raises or flexible work hours.

Furthermore, most women are afraid to request what they want and rightfully deserve. This stems from a notion that if they keep their heads down and work as hard as possible, this will be recognized, adds Burdett.

Unfortunately, this only works in some cases. 

CAREER DEVELOPMENT

To help improve their career and economic prospects, Burdett suggests preparing a deck on the value they bring to the organization, with a six—to 12-month plan, and presenting it to their boss. “This shows leadership and ambition when it comes to career development.”

Glasgow adds that negotiations do not have to be based solely on salary and benefits but also on flexible working, career pathways, and development opportunities; it is about being transparent with employers about needs and working with them on a solution. 

“If a current employer is not amenable to help, then women should be open to changing organizations, as provisions for childcare, salary packages, and opportunities for career progression can vary widely.”

According to Burdett, organizations could also consider adding additional benefits for those with children, such as a small nursery in the office or an allowance towards childcare costs, as part of the job package.

Additionally, it is vital to implement mentorship programs to help working moms advance their careers and return-to-work programs focusing on reintegration and skill enhancement.

“Our social and cultural norms need to adapt to today’s workplace realities, and we need structures and policies that actively support working women,” says Pinto. 

Many countries in the region are implementing legal reforms to promote gender equality in the workplace, including anti-discrimination laws and policies that support women’s employment. Many governments in the region have mandates for fair and equal representation of women in senior roles, including fair and equal pay. In the UAE, Sheikha Manal bint Mohammed bin Rashid Al Maktoum, the president of the UAE Gender Balance Council, stated that gender balance is a long-standing priority for the country. 

“Companies are ramping up efforts to attract and retain female talent; this should see a better, more sustainable outlook for women and their careers,” adds Burdett.

Rising prices are one of the economic barriers women face, meaning that even if inflation cools, further initiatives must be taken to ensure equal opportunities.

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