The global care economy has recently emerged as a crucial topic championed by the International Labour Organization (ILO), highlighting its potential to be a significant driver for inclusive growth and job creation. On the International Day of Care and Support, ILO Director General Gilbert F. Houngbo articulated the urgent need for sustained investments in this sector, referring to it as the “backbone of well-being, social justice, and sustainable development.” His statements underscore the value and necessity of care work, both paid and unpaid, which accounts for about 10% of global employment.
### Understanding the Care Economy
The care economy encompasses a wide range of services, including child care, eldercare, health services, and domestic work, all of which are essential for societal well-being. However, the sector remains primarily informal and undervalued—especially considering that women carry out approximately three-quarters of unpaid care work globally, often without adequate compensation or social protection.
The ILO estimates that the value of unpaid care work alone could equate to over 9% of global GDP if properly accounted for, which illuminates the economic contributions this sector makes without receive sufficient acknowledgment in policy-making and economic planning.
### The Silent Economic Fault Line
Houngbo characterized the neglect of the care economy as a “silent economic fault line,” warning that failing to address the needs and contributions of care workers not only perpetuates gender inequality but also hampers overall economic growth. This sentiment resonates in countries like Nigeria, where a World Bank report estimates that the nation loses approximately $6–8 billion annually due to women’s unpaid care responsibilities. This loss becomes particularly alarming in an economy grappling with high unemployment and low female labor participation rates.
The ILO highlights that when care workers are supported, entire societies tend to prosper. In contrast, neglecting the care economy comes with tangible costs, including diminished economic output, elevated burnout rates, and declining birth rates in areas where families lack accessible care services. For businesses, the repercussions manifest as decreased productivity, particularly in workplaces lacking sufficient care infrastructure.
### The Business Case for Care
Houngbo posited that care policies are not just social investments; they’re also vital business enablers. Companies that adopt care-sensitive policies stand to reap benefits in talent retention, employee satisfaction, and overall productivity. Evidence suggests that businesses with robust care systems enjoy lower employee turnover and higher morale, as exemplified by large firms in Europe and Asia offering on-site childcare and flexible parental leave.
However, in regions like Nigeria, corporate policies addressing care work have not yet become widespread, particularly outside of high-paying formal jobs. Over 80% of Nigerian women work in the informal sector, where lack of access to social protection and care infrastructure remains a critical barrier to their economic participation.
### The 5R Framework for Decent Care Work
At the core of the ILO’s advocacy is the “5R Framework for Decent Care Work,” which provides a comprehensive roadmap for developing equitable care systems. The framework emphasizes the importance of recognizing care work’s value, redistributing caregiving responsibilities, reducing the burdens placed on caregivers through improved technology and services, rewarding care workers adequately, and ensuring their representation in policy dialogues.
This framework also prioritizes disability inclusion, reaffirming the ILO’s commitment to ensuring that no one is left behind in the care economy. The organization encourages countries to integrate unpaid care contributions into national accounts, fundamentally reimagining how care is viewed within economic contexts.
### Global and National Implications
The ILO’s call to action aligns with escalating demands from development economists and gender advocates. While global discussions primarily focus on public investment in care systems, Houngbo stresses that businesses and private-sector employers must also adopt active roles. The evidence is clear: investment in care infrastructure is a potential job creation strategy that can bolster emerging economies. The ILO suggests that additional investment of just 3–4% of GDP into care systems could yield hundreds of millions of new jobs worldwide while significantly narrowing gender and income gaps.
In essence, achieving gender parity in unpaid care work could contribute an estimated $10 trillion to the global GDP by 2030, primarily by enhancing women’s economic participation. For countries like Nigeria, Ghana, and Kenya, investing in care infrastructure can be a dual-purpose strategy—addressing gender inequality while simultaneously catalyzing job growth.
### Conclusion
The global care economy represents a pivotal frontier for inclusive growth and job creation, urging stakeholders in both public and private sectors to acknowledge and invest in its potential. The ILO’s advocacy reflects a significant shift in understanding care not merely as a social issue but as an essential driver of economic growth. In an era punctuated by post-pandemic workplace challenges, the emphasis on care work becomes increasingly vital not just for the well-being of individuals but for the health of economies themselves. As this discourse continues to gain momentum, it becomes evident that investing in the care economy is an investment in our shared humanity and future prosperity.
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