Women would be hit hardest by public spending cuts, warns TUC

10.03.10

Deep public spending cuts would lead to heavy job losses for women and substantially reduce their income in retirement, according to a report published today (Wednesday) by the TUC.

The report, Women and the Recession - One Year On, published to coincide with the TUC Women's Conference which starts today in Eastbourne, warns that early public spending cuts would hit female employment hardest because around four in ten women work in public sector occupations, compared to less than two in ten men.

The report identifies Wales (46.6 per cent), the North East (45.9 per cent) and Scotland (43.1 per cent) as the areas where the highest proportion of women work in the public sector. Women working in these areas are most vulnerable to job losses resulting from public spending cuts, the report says.

Female unemployment increased by 1.9 per cent during the recession compared to 3.4 per cent for men - a far smaller difference than previous recessions. During the early 1990s recession male unemployment rate increased at nearly five times the rate of female job losses.

Women and the Recession - One Year On shows how female unemployment during the recession has varied greatly between regions. Yorkshire and the Humber has had the biggest increase in women's unemployment since the start of the recession (+3.1 percentage points), followed by London (+2.8 percentage points) and Wales (+2.2 percentage points). London is the only area of the UK where female unemployment has increased faster than men's.

shows how female unemployment during the recession has varied greatly between regions. Yorkshire and the Humber has had the biggest increase in women's unemployment since the start of the recession (+3.1 percentage points), followed by London (+2.8 percentage points) and Wales (+2.2 percentage points). London is the only area of the UK where female unemployment has increased faster than men's.

The report shows that many areas with a high proportion of female public sector workers also have higher than average male unemployment rates, so spending cuts could leave many families with both parents out of work.

Women and the Recession - One Year On warns that cuts to public sector pensions would also increase the gender divide in retirement income and lead to greater poverty for female pensioners.

warns that cuts to public sector pensions would also increase the gender divide in retirement income and lead to greater poverty for female pensioners.

Women's average income in retirement is a third less than men's, and it would be far worse were it not for the superior record of the public sector in providing decent pensions for women and lower-paid staff, the report says. It warns that women hold nearly two-thirds (64.5 per cent) of defined benefit schemes in the public sector so any cuts to pensions would disproportionately fall on them.

The report shows that women in the public sector are currently doing around £5 billion worth of unpaid overtime a year. With public services already under strain, further job losses would leave staff even more stretched, the report says.

TUC General Secretary Brendan Barber said: "Slashing public spending may satisfy fiscal hawks and city traders but it would cause misery to millions of people who have already suffered from the recession. A fresh wave of public sector job losses could leave many families with both parents out of work.

"Many women choose to work in the public sector because it offers secure work with a good work-life balance and a decent retirement income. It's hardly fair that these are now all under threat thanks to the mistakes of super-rich bankers, who are already back collecting their bonuses.

"When politicians talk about the need for deep spending cuts they rarely say how this would affect ordinary working people. But as our report makes clear - women would have to pay for these cuts with their jobs and pensions."