Women Losing Jobs and Healthcare as Debt Burdens Rise, New UNDP Report Finds

A new UNDP report warns that rising sovereign debt and austerity measures in developing countries are disproportionately harming women through job losses, falling incomes, weaker healthcare systems, and increased unpaid care work. The study calls for gender-responsive debt policies and global financial reforms to protect social spending and reduce inequality.

A new United Nations Development Programme (UNDP) report has warned that the growing debt crisis in developing countries is hitting women the hardest. The study, Who Pays the Price? Gender Inequality & Sovereign Debt was prepared under UNDP's EQUANOMICS initiative by researchers Elissa Braunstein and Milena Dehn of Colorado State University. Using data from 85 developing countries, the report examines how rising debt repayments are affecting jobs, healthcare, education, and daily life, especially for women.

The report argues that sovereign debt is no longer just an economic issue. As governments spend more money repaying loans, they often reduce spending on healthcare, education, childcare, and social protection. According to the study, more than 3.3 billion people now live in countries where debt payments exceed spending on health or education.

Millions of Women Losing Jobs

One of the report's strongest findings is the impact on employment. Researchers found that when countries move from moderate to high debt repayment burdens, women's employment falls sharply. In the short term, around 55 million women lose jobs across the countries studied. Over time, the number rises to more than 92 million.

Men are also affected, but the losses are much smaller. The report says women are more vulnerable because they work heavily in sectors such as healthcare, education, and public services, which are often the first to face budget cuts during economic crises.

As formal jobs disappear, many women are pushed into insecure and low-paid work. The report found that rising debt burdens force millions of women into informal jobs or unpaid family labour, where there is little job security or social protection.

Healthcare and Education Under Pressure

The report also highlights the severe impact on healthcare systems. Researchers estimate that countries with high debt servicing burdens experience a 32.5 percent increase in maternal mortality over time. This means thousands of additional women die from pregnancy and childbirth-related causes because healthcare systems become weaker under financial pressure.

Life expectancy is also falling. According to the report, both women and men in heavily indebted countries face declining life expectancy due to weakened public healthcare services and reduced government spending.

Education systems are also suffering. Fiscal cuts reduce investments in schools and public services, forcing many children to leave education early. Boys are often pushed into work to support household income, while girls are more likely to stay home and take care of family members when public services decline.

The Burden of Unpaid Care Work

A major issue raised in the report is unpaid care work. When governments cut spending on childcare, healthcare, transport, or welfare programs, families are forced to fill the gap themselves. Women already perform most unpaid care work globally, and debt-related spending cuts increase this burden even more.

The report explains that women spend far more time than men caring for children, elderly family members, and households. As public services shrink, women lose opportunities to work, earn income, or continue their education because they are expected to handle growing domestic responsibilities.

Researchers warn that this creates a cycle where women become more economically dependent and inequality deepens over time.

Call for Global Financial Reform

The report strongly criticizes austerity measures often linked to debt management programs. Policies such as cuts to public spending, removal of subsidies, and wage restrictions may improve government finances temporarily, but they also damage social protection systems and increase inequality.

Instead, the study calls for major reforms in the global financial system. It recommends protecting spending on healthcare, education, childcare, and social services even during debt crises. The report also urges international institutions to offer fairer debt restructuring, lower borrowing costs for developing countries, and stronger protections against predatory lending.

Ultimately, the report sends a clear message: debt crises are not gender neutral. While governments and financial institutions focus on balancing budgets and repaying loans, the real cost is often carried by women through lost jobs, poorer healthcare, reduced education opportunities, and unpaid labour at home.