GEC #11 Inequality of Compensation and Employment in USA


Author: Future Manager Research Center

Gender Inequality concerning both compensation and employment is a genuine issue around the world, with the US being no exception. Covid has magnified the problem concerning women even further.

Unemployment among women has increased due to Covid based on several factors:

  1. Industries that traditionally hire more women (hospitality, retail) have been incredibly hard hit by Covid, causing more layoffs.
  2. The coronavirus shutdowns have closed schools and daycare centers around the country, keeping kids at home and making it even harder for parents (especially mothers who tend to provide childcare) to keep working. Childcare poses an additional challenge to working mothers during the pandemic.

Concerning compensation, while it has been an issue traditionally, steps are being taken to level the field. NY and many other states have passed laws to ban employers from asking potential employees’ salary history. This is to have compensation offers based on skill and experience, as opposed to previous salary history, which has been lower amongst the female population.  

All in all, it appears that following these steps, the question of inequality concerning compensation should start to get better over time.

The unemployment issue is somewhat of an anomaly due to the Covid issue. Hopefully, as we come through this crisis and recession, the question of Gender equality will work itself out as more women move away from traditionally “female” oriented industries.