UNDP Report Warns Rising Sovereign Debt Could Cost Women 55 Million Jobs, Deepen Global Gender Inequality

At the same time, women’s per capita income is projected to fall by 17 percent, while men’s incomes remain largely unchanged—widening the already significant global gender income gap.

A new United Nations Development Programme (UNDP) report has delivered a stark warning: escalating sovereign debt burdens across developing economies could wipe out tens of millions of jobs held by women, sharply reduce their incomes, and reverse years of progress on gender equality.

The report, titled "Who Pays the Price? Gender Inequality and Sovereign Debt," draws on data from 85 developing countries and highlights how debt distress is not gender-neutral—placing a disproportionate economic and social burden on women.

According to the analysis, rising debt servicing pressures could result in the loss of 55 million jobs for women in the short term, rising to 92.5 million in the long term as countries move from moderate to high debt repayment levels.

At the same time, women's per capita income is projected to fall by 17 percent, while men's incomes remain largely unchanged—widening the already significant global gender income gap.

Debt Crisis Driving "Development in Reverse"

The report paints a concerning picture of what it describes as "development gains in reverse." As governments allocate larger portions of national budgets toward debt repayment, critical investments in public services—such as healthcare, education, and social protection—are often scaled back.

These cuts have cascading effects, particularly for women.

"Sovereign debt is not a math problem. It is a human one," said UNDP Administrator Alexander De Croo. "When governments are forced to reduce spending on vital services, the heaviest toll falls on women—through lost jobs, reduced income, and increased unpaid care responsibilities."

As formal care systems shrink, the burden shifts back onto households, where women disproportionately take on unpaid caregiving roles. This limits their ability to participate in the labour market, further constraining economic independence.

Health and Social Impacts Intensify

Beyond employment and income losses, the report highlights severe social consequences linked to rising debt burdens:

• Maternal mortality could increase by 32.5%, equivalent to 67 additional deaths per 100,000 births

• Life expectancy declines for both women and men due to strained public health systems

• Access to essential services deteriorates, particularly for vulnerable populations

These outcomes underscore how fiscal tightening in response to debt crises can directly impact human development indicators.

Compounding Global Pressures

The findings come amid a complex global backdrop marked by geopolitical tensions, inflation, and energy market volatility, all of which are further squeezing fiscal space in developing economies.

As governments respond to rising insecurity and economic instability, social spending is often deprioritized—exacerbating inequality and slowing progress toward sustainable development goals.

Experts warn that without targeted interventions, the combined pressures of debt and global crises could entrench gender disparities for years to come.

Call for Gender-Responsive Debt Policies

The report makes a strong case for rethinking how governments and international financial institutions approach debt sustainability.

"Debt management strategies matter for all people, but when public spending is squeezed, it is women who lose first—their jobs, their services, and their economic security," said Raquel Lagunas, UNDP Global Director of Gender Equality.

UNDP is calling for:

• Gender-based impact assessments in all borrowing and fiscal decisions

• Protection of social and care infrastructure spending

• Adoption of gender-responsive budgeting to track impacts across populations

• A shift away from austerity measures that disproportionately harm women

The report emphasizes that safeguarding investments in health, education, and care systems is not only a social imperative but also essential for building resilient and inclusive economies.

Rethinking Debt for Inclusive Growth

Produced under UNDP's EQUANOMICS Programme, the report highlights the need for integrated policy approaches that align fiscal sustainability with gender equality and human development goals.

UNDP, which operates in 170 countries, argues that economic systems must be redesigned to ensure that debt strategies do not undermine long-term development outcomes.

As global debt levels continue to rise—particularly in low- and middle-income countries—the report serves as a critical reminder that financial decisions at the macro level have profound human consequences.

Without reforms, the burden of sovereign debt could fall disproportionately on those least able to bear it—threatening not only gender equality but the broader trajectory of global development.