By Tia Washum

To be a productive member of society, sometimes you must take care of yourself first. For some, this is nearly impossible. How can you care for yourself when you have limited resources and choices due to low wages and lack of benefits like paid leave? Imagine if, daily, you had to experience the constant questions: “How am I going to survive? How do I pay the rent? How do I afford gas for my car when my expenses are higher than my paycheck?”

Some of our neighbors exist; they do not really get an opportunity to live. Daily life is full of uncertainty, and emotions range from terror to depression.

 Hoosier Women Sound the Alarm:

COVID-19, Job Losses, & Financial Black Holes

Throughout the pandemic, staff at the Indiana Institute for Working Families have been surveying and interviewing Hoosiers across the state about their financial well-being. Recent responses from Hoosier women raise alarm bells and add nuance to what we have seen emerging in other forms of state and national data. 

The evidence is mounting: While men may be more likely to suffer poor health outcomes from COVID-19, women are more likely to suffer from its economic impacts. Given that Hoosier women earned less, owned less, and were more likely to experience poverty before the pandemic began, this is a troubling trend. Below, we offer a summary of what Hoosier women have been telling us.

Women Need - but are Losing - Jobs

Receiving the terrible news from an employer that the company is eliminating your position, putting you on furlough, cutting hours, or going out of business can spark a cascade of financial consequences. That is especially true for Hoosier households that lack the savings to go weeks without a paycheck. Prior to the pandemic, approximately four in ten Hoosier households lacked sufficient savings to weather a $400 emergency. During this pandemic-induced recession, job losses and cuts to hours happened on a massive scale, with more women than men experiencing lay-offs and heavier losses among Black and Latinx workers as well as low-income families: 28% of workers in families making <$40k lost jobs compared to 13% of workers in families making more than $100k/year. “I am a single parent with a baby and 2 school agers and I have no job,” a mom from Central Indiana shared, noting “I am use to working full time.” “My hours were cut for four months,” reported another Indianapolis woman who told us she is struggling to keep up with bills. Approximately four in ten Hoosier women has experienced a loss of employment income in their household since March 13, 2020 – and national data suggest Black women and Latinas have been hit even harder.

COVID-19 has hit a number of female-dominated occupations hard. Occupational segregation is high in categories like healthcare support, personal care and service, food preparation and serving and education and training. Continuing unemployment claims for the week ending October 3^rd show that ‘accommodation and food service,’ ‘health care and social assistance,’ and ‘educational services’ categories made up nearly one in four claims. Even when their jobs were disrupted, white male workers were more likely to maintain ties to their employer, possibly increasing their chances of getting back to work quickly. By September, national unemployment rates for adult men (7.4%) and white workers (7.0%) trended lower than rates for adult women (7.7%), Black workers (12.1%) and Latinx workers (10.3%).

Beyond job losses and cuts to hours, demands at home are also pulling women out of the workforce. In July, 27% of working mothers reported that they expected to work less or stop working if schools did not have in-person classes versus 17% of working fathers; that appears to be bearing out, as in September, four times as many women as men left the workforce. A number of women told us about having to make impossible decisions because of caregiving needs. “I left my job because my son was premature and I didn’t want to get him sick,” reported a mom from Hamilton County. Another mom from Allen County shared that she was “concerned that I may have to quit my job or go part-time to help my kids with remote learning.” “My child’s teacher expects someone to sit next to my child for the entire day,” reported a third, who went on to note, “The stress it puts on my job (which unreasonably wants me in the office rather than working remotely which is a safer option) makes me feel like I should have sent my child to school. But then I would have felt guilty about possibly exposing my family even more.”

These work-caregiving tensions are draining women in more ways than one. “I just wonder every day if I will ever be back to where I was financially. To be the breadwinner as a working mom is emotionally and psychologically draining in a way people don’t always get. I used to think being a working mom was the best thing ever. Now I feel like a disappointment at everything,” said one mom from Central Indiana. This pressure may be compounded by employers’ expectations that men continue working as usual. “My husband can’t really take off because they expect the spouses to carry the burden of schooling,” an Indianapolis mom reported. A recent poll suggests that 63% of women are primarily responsible for e-learning, as compared to 29% of men.

Among those still working, a number of women also noted their concerns about the precariousness of their employment status. One woman from Marion County shared that both she and her husband feared losing their jobs. “This has injected into the situation a level of uncertainty that leads us to fear any financial decision-making,” she reported. “We were prepared for the bottom to fall out from under us at any minute-- and still are.” Another said, “With two kids in daycare/child care, the threat of quarantine is constantly looming over us.” Recent Census Bureau survey data suggests that nearly two in ten Hoosier women expect that their household will lose employment income in the month of October. While some have paid leave to attend to illnesses or caregiving needs that arise because of the Families First Coronavirus Response Act, carve-outs to this program coupled with reduced demand in certain sectors leave many others teetering on the edge.

Some women in households that had lost jobs expressed concerns about timely and fair access to unemployment insurance. “My husband applied for unemployment months ago and still has never received a decision,” said one mother from Hamilton County who also told us they were nearing the end of their household savings. Another working mother from Madison County reported losing her job due to childcare disruptions and not receiving unemployment. Census Pulse data suggests that 345,366 women received unemployment benefits; 122,683 applied but have not received benefits, although caution should be used in relying on this data due to large standard error rates. However, providing support for these concerns, the Century Foundation estimates that Indiana is among the slowest states to process claims. For those that have received unemployment, concerns linger about how long boosted unemployment will last and the sufficiency of regular unemployment. "I have been expected to live on $200/week when I used to make $18/hour," a mother from Madison County told us. "It's impossible and I'm drowning." 

A Financial Hole

Among those with lost income, women reported they felt as though they were digging a financial hole – either by depleting their savings or taking on debt. Prior to the pandemic, nearly one in three Hoosiers with a credit file had debt in collections with even higher proportions of delinquent debt in communities of color – meaning many entered the crisis on thin ice. Many of those with savings have dipped in; about one in ten households nationwide reported borrowing from or cashing out retirement savings by the end of July, and more recent data suggests that one in three households had dipped into savings or retirement accounts by mid-August. This is particularly concerning for women given that they tend to have lower retirement savings balances and need to save more. “We definitely took a financial hit, but luckily we had a good cushion before,” reported one respondent.

Those without savings have turned to borrowing. Approximately one million Hoosiers 18 or over have used credit cards or loans to pay for expenses in recent weeks. One Central Indiana woman reported that she was falling behind on bills and has “to use credit card more to buy needed items.” Another shared that she had “bills put on hold. Credit is hurting because of it. Times don't seem to be getting any better either.” Damaged credit scores may create a drag on recovery as they factor into Hoosiers’ ability to get jobs, apartments, insurance, and loans. It was a top complaint category from Hoosiers to the CFPB early on in the COVID-19 crisis.

Still others are simply falling behind on basics. "I am two months behind on rent as all my disposable income has been depleted since COVID began. I used to pay my rent on time up until August. I'm very worried about myself and the children and our home," a mother from Indianapolis reported. While she's applied for rental assistance, there isn't nearly enough to meet the needs and new restrictions mean many won't qualify for help. "My utilities are subject to disconnect and I'm behind on rent," another told us. 

At the same time, women reported increased expenses, meaning that regardless of income changes, money is not going as far. About three in ten women over 18 are finding it difficult paying for usual household expenses (460,161 somewhat difficult and 301,795 very difficult), and women are more likely to report difficulty paying bills than men.  “We had a relative stay with us for 3 months when her college shut down and with our kids being home daily our utilities have increased drastically.  We won't be caught up until the end of the year,” one woman reported. Residential electric bills have increased in many localities statewide, supporting this observation. “We have had to spend more money on child care/education due to required distance learning,” another family reported. “Jobs never had layoffs, but grocery prices have increased,” another reported. A USDA “low-cost” food plan for a family of four has increased to $204.50/week in September 2020, up from $197.90/week in February of 2020. In August, 341,446 Hoosier households received assistance through the Supplemental Nutrition Assistance Program, with an average monthly benefit of $370.96/month/household. 

Impact on Relationships & Mental Health

Hoosier women also described impacts beyond finances - “isolation has forced me into more contact with my abusive ex husband,” wrote one, while another shared that she lost her cousin to COVID-19. Still another said, “Although our finances did not change, the fear and social aspects of pandemic have changed our lives.” We acknowledge that even for those who have not experienced financial challenges, COVID-19 has led to other losses and challenges.

Recent data estimate that more Hoosier women than men report experiencing anxiety and an inability to stop worrying. An estimated 766k women experienced anxiety "more than half of days" or "nearly every day" compared to 458k Hoosier men. Similarly, 451,144 women were estimated to be feeling down or depressed “more than half of days” or “nearly every day” as compared to 342,085 Hoosier men. Clearly, attending to the challenges beyond financial well-being will also be crucial. 

Will Women Struggle to Re-Enter the Workforce?

Women have also cautioned us that they anticipate barriers to re-entering the workforce. The instability and lack of affordability of child care is among them. In July, the National Association for the Education of Young Children predicted that fewer than two in ten childcare providers could be expected to last the year without financial support. That’s because the pandemic threw new challenges into an already-fragile system that lacks sufficient public investment and in which parents pay more than they can afford. Just over 2800 Hoosier children were on the waiting list for childcare assistance at the end of September.

Discrimination is another. “I am pregnant and finding a job that is comfortable hiring a pregnant woman is difficult due to the uncertainties of COVID-19,” reported one Hoosier. Still others worry about – or have already experienced – having to take a much lower-paying position to get back into the workforce. However, some have found that the job loss they experienced may have been a blessing in disguise, as they returned to the workforce in a higher-wage position.   

Hoosier Women Want Policymakers to Act

Women expressed their desires for policy action in no uncertain terms. “Where is help?!” asked one mother from Indianapolis. “Put suffering people before politics,” said another. Women and their families are struggling, while their cries for help are lost in the political back-and-forth.  

Some, recognizing the interconnectedness of supporting businesses and supporting employees, want to see “more help for companies who are struggling so they can keep their workers.” Others want to see greater protections for workers across places of employment, like “job protection for high risk people” and “paid leave for all parents, not just those who work for a certain size employer.”  

A number of women also cried out for support managing caregiving, and with e-learning in particular. “Support stay at home parents caring and teaching the next generation!” one pleaded. “Figure out a way to take so much of the burden off women to just figure out how to manage educating children, still working, and everything else,” said another.  

More stimulus, increased unemployment, and paid leave surfaced repeatedly as suggested approaches to shore up families’ financial well-being. We echo their calls. Supporting Hoosier women – both with the current effects of the pandemic recession and with the long-term financial and emotional damage it is likely to create – deserves our policymakers’ immediate attention.

 *Thank you to the Women's Fund of Central Indiana for supporting this work.*

Let's Celebrate & Expand Families First Paid Leave

Fortunately, Congress stepped up to the plate. The Families First Coronavirus Response Act granted many workers two weeks of emergency paid sick leave and up to ten weeks of emergency paid family leave for school or child care closures. Enacting a paid leave standard – even a limited one – marked a historic moment. For the first time, the United States joins nearly every other country in the world in having a national paid leave policy. For at least some people in the United States, taking time off when sick or when a family member needs care no longer costs a paycheck – at least for now.

However, loopholes cut many workers out, including health care workers, essential workers, and employees of businesses with over five hundred employees. In Indiana, that last carve-out alone cuts out an estimated 1.5 million Hoosiers who work for larger employers like big box retailers and chain restaurants. Furthermore, it is absurd to think that the people who are working to keep us healthy and safe on the frontlines in ERs or other health care facilities cannot call in sick themselves. Plus, the provisions are temporary.

The CFPB Complaint Database Can Help Protect Hoosier Consumers:

Top Complaint Areas Signal Areas in Need of Intervention

• Indiana Institute for Working Families, Building and Repairing Credit  | Policy Brief
• National Consumer Law Center, Credit Reports and the COVID-19 Crisis: What States Should Do to Help Consumers | Factsheet 
• Consumer Financial Protection Bureau, How do I get a copy of my credit report? | Website