Care work: The invisible foundation of economies — and a missing link to inclusive growth

Care is a universal human experience — something we all give or receive throughout our lives, and a foundation on which our economies depend. Yet care work, especially unpaid care, remains undervalued and largely invisible in economic policymaking. 

Women shoulder two to three times more of this work than men, contributing an estimated 16 billion hours of unpaid care every day. This unequal and unrecognized responsibility keeps women’s time, income, opportunities and potential constrained — putting truly inclusive development out of reach. 

The consequences of unequal care responsibilities

UN Women estimates that each extra hour of unpaid care reduces a woman’s likelihood of joining the labour force by 38%, and completing higher education by 34%. The International Labour Organization reports that unpaid care keeps 45% of working-age women — over 700 million — out of the labour force, compared with just 5% of men.

The impacts extend to economies: unpaid care work is a major driver of gender inequality. Such inequality has huge economic repercussions. In sub-Saharan Africa alone, it robs the region of USD95 billion (CAD130 billion) annually in lost productivity and revenue.

If women’s unpaid labour were compensated, it would represent roughly 9% of global GDP — equivalent to about USD11 trillion (CAD15 trillion). 

Addressing the unequal responsibility of unpaid care work isn’t just a moral and rights-based imperative — there is also a compelling economic rationale. Unpaid care work is a hidden foundation of economies, but its unequal distribution also creates real economic losses. When women shoulder most of this work, their participation in paid employment falls — suppressing productivity and, in turn, economic growth.  

The care–labour market connection

One of the clearest links between care and economic outcomes is women’s labour force participation, particularly through access to affordable child care. Although unpaid care extends beyond child care, this is where evidence is strongest.

IDRC-supported research in Kenya illustrates this well: two projects under the Scaling Care Innovations in Africa initiative show that access to child care significantly boosts the economic mobility of low-income mothers.

One example is WowMom, a social enterprise partnering with Nairobi County to establish quality child-care centres in public markets. The research shows that when women traders have on-site child care, they work more consistently and earn more — with some in Mwariro Market reporting doubled daily incomes. In a baseline survey, 70% of women who struggled to work regularly cited lack of affordable, nearby child care as their main barrier.

Another example is Tiny Totos, a social franchise that supports more than 500 child-care centres in Kenya and Ethiopia. By training women in informal settlements to become professional child-care providers, it expands access to care while enabling many providers to double or even triple their incomes.

Earlier IDRC-supported studies echo these findings. In Kenya, mothers who received daycare vouchers were 17% more likely to be in paid work within a year — and they worked five fewer hours per week without reducing their earnings, suggesting higher productivity. In India, child-care provision also increased women’s employment. In Ethiopia, community-based child-care centres boosted women’s employment, business ownership, income and savings.

Evidence from other regions aligns with this. In Brazil, for example, a large randomized trial in Rio de Janeiro found that access to free child care nearly doubled mothers’ labour force participation and raised their income by 16%. 

Taken together, the evidence is clear: child care is a high-return economic investment that boosts labour supply, productivity and household wellbeing. 

Care and trade: An overlooked link

Trade discussions often overlook how the care economy shapes who can participate and benefit from trade. When women’s time and mobility are limited by heavy care responsibilities, they face barriers to entering export-oriented sectors, cross-border trade and higher-value roles in global value chains. Emerging research on gender and value chains shows that non-tariff barriers — such as lack of child care — can be as restrictive for women-led small and medium-sized enterprises as tariffs themselves.

Conversely, when care infrastructure is accessible, women participate more fully in the workforce, boosting productivity and reducing turnover and absenteeism. In Jordan, a garment factory saw sick-leave absences drop by 9% after opening an onsite crèche, and in Ethiopia, workplace child care improved retention and productivity, particularly for women, and contributed to greater employee satisfaction.

Investing in care strengthens labour supply and makes value chains more inclusive. Companies increasingly recognize that unequal unpaid care responsibilities affect performance and are adopting care-responsive policies that improve wellbeing and deliver business value. The International Finance Corporation has documented these trends, showing clear benefits for employees and company bottom lines.  

Engendering trade policies

Trade agreements and trade patterns are not gender neutral. Gendered impacts arise from longstanding inequalities in rights, skills, resources, time burdens and care responsibilities. Inclusive trade requires intentional strategies and deliberate action to identify and address these barriers.

IDRC is helping make trade under the African Continental Free Trade Area more inclusive by supporting a continent-wide gendered value chain analysis and supporting member states in operationalizing the Women and Youth Protocol.

Although our trade work doesn’t start with care, we increasingly see how unpaid care responsibilities shape who can access and benefit from trade. Recognizing this connection is essential for inclusive development and for ensuring trade systems unlock the full potential of women and youth. 

Building the foundation for inclusive growth

Investing in and recognizing care — through quality child care, progressive labour policies, strong social protection, or equitable trade frameworks — is not only the right thing to do; it is a smart economic strategy. 

When care work is valued, supported and shared, women thrive, families benefit and economies become more resilient and inclusive. The evidence makes it clear: unlocking this potential requires treating care as a core economic priority, not an afterthought. Integrating care into programming and investment decisions and into trade and competitiveness strategies is essential for driving inclusive growth and building societies where prosperity is shared and sustained.