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The COVID-19 pandemic has accentuated inequalities in many dimensions of European societies, including inequalities between women and men in several key domains. This report looks at gender inequalities that existed prior to the COVID-19 crisis and describes in what ways the pandemic has impacted on gender divides. It also analyses the various policy responses of national governments across the EU to address gender divides, and to prevent their widening during the pandemic. The effects of the pandemic on employment at EU-level has been remarkably gender-neutral on the whole, with nuances emerging within different sectors and socioeconomic groups. The pre-existing gender gaps in unpaid work have persisted, leading to work–life conflicts, especially among teleworking mothers of young children. Finally, the report describes the outlook for gender inequalities in Europe, pointing to factors that will shape the future of equality between women and men: gender segregation in labour markets, gender divides in telework and hybrid work, and gender mainstreaming in policymaking – especially in relation to caregiving and care services.

Despite the increasing participation of women in the labour market and a higher share of women than men being hired into well-paid jobs in recent years, a gender pay gap exists across all EU Member States. Pay differentials between women and men have been shown to be significantly influenced by the economic sector where people work and the occupation they hold.

This policy brief examines these dimensions. It also identifies how much these and other factors contribute to gender disparities in pay. The analysis finds that, of the observable factors examined, the greater likelihood of women working in lower-paying sectors and working part-time are the most important contributors to the gender pay gap. Nevertheless, around two-thirds of the gap in the EU remains unexplained by individual and employment-related factors typically analysed, suggesting that other factors not captured by survey wage data account for the rest of it.

Closing gender gaps in the labour market by achieving the equal participation of women is among the key objectives of the new Gender Equality Strategy 2020–2025. Despite significant progress in reducing the gender employment gap, it has stagnated over the past few years. Moreover, segregation in employment across sectors and occupations is still pervasive.

Against this background, this policy brief investigates the evolution of female labour market participation in the last decade and shows that the persisting gender employment gap cost Europe more than €320 billion per year in 2018, corresponding to 2.4% of EU GDP. The analysis also examines the disproportionate effects that the current COVID-19 crisis is having on working women, including the risk of disengagement from the labour market and the unintended consequences of confinement measures. It ends with a review of policy responses to the pandemic that have supported female employment in the short term and proposes how policy should respond in the long run to avoid rolling back decades of gains achieved in gender equality.