Public Investment in Care Economy Can Solve Jobs Crisis and Gender Gap, Says ILO

The world is facing a dual crisis of care and employment. As populations age, birth rates decline, and women struggle to enter or remain in the workforce due to unpaid caregiving responsibilities, the global economy must adapt. A new policy brief from the International Labour Organization (ILO) offers a powerful solution: scale up employment-intensive investments in the care economy to generate millions of decent jobs while addressing critical infrastructure and social service gaps.

The second publication in the ILO’s Care Economy Brief Series, titled Employment-Intensive Investments for Advancing Decent Work in the Care Economy, makes the case for integrating care considerations into public infrastructure spending, not only to build physical assets but to create sustainable livelihoods and more inclusive societies.

299 Million Jobs by 2035—80% Held by Women

The ILO estimates that such a shift in public investment strategies could generate up to 280 million jobs by 2030, rising to 299 million by 2035. Crucially, nearly four-fifths of these jobs would go to women, helping to narrow entrenched gender disparities in global labour markets and improving economic resilience for families and communities.

“Infrastructure spending should not only build roads and bridges; it can also build brighter futures through decent jobs,” said Mito Tsukamoto, Chief of the ILO’s Employment in Investments Branch, which oversees the Employment-Intensive Investment Programme (EIIP).

“Investing in childcare centres, community health hubs and family-friendly worksites helps tackle labour shortages, expand women’s employment and strengthen local resilience in one stroke.”

The Three Pillars of Care-Based Investments

The ILO brief identifies three transformative strategies to help governments and development partners unlock the potential of care-centred public investments:

1. Supporting Workers with Care Responsibilities Policies such as paid leave, flexible working hours, and on-site childcare services are vital for enabling workers—especially women—to balance paid and unpaid care responsibilities without sacrificing their livelihoods.

2. Developing Care Infrastructure Labour-based infrastructure development should expand beyond roads and schools to include childcare centres, eldercare facilities, and community health clinics. These projects can also be designed to maximize local employment by using labour-intensive construction methods.

3. Recognizing and Professionalizing Care Work By treating care as a formal economic sector, the ILO calls for training, decent wages, and social protection for care workers—many of whom are women working informally or without pay. This shift would elevate caregiving roles and ensure their recognition in national employment frameworks.

Impressive Returns on Investment

The brief underscores the economic value of closing gaps in care policy and service delivery. ILO projections indicate that each US $1 invested in addressing childcare gaps could return US $3.76 in global GDP by 2035, while increasing women’s labour force participation by over 10 percentage points. These gains would benefit not only families, but national economies seeking sustainable and inclusive growth.

Global Examples: Care-Integrated Infrastructure Projects

The ILO highlights pilot projects from countries such as Jordan, Sudan, and Madagascar, where EIIP initiatives have successfully combined traditional infrastructure goals with care economy objectives.

• In Jordan, projects rehabilitated roads while simultaneously constructing nurseries and health posts, and creating safe community spaces. These efforts generated over 155,000 paid work-days, 34% of which were completed by women and 5% by persons with disabilities.

• In South Africa, Argentina, and Rwanda, care services have been integrated directly into Public Employment Programmes (PEPs), making these initiatives more gender-responsive and more aligned with the needs of local communities.

These examples illustrate how public infrastructure can become a vehicle for social transformation, addressing both care deficits and job scarcity simultaneously.

A Gender-Responsive Framework for Investment

Chidi King, Director of the ILO’s Gender, Equality, Diversity and Inclusion Branch (GEDI), emphasized the importance of applying the ILO’s 5R Framework—recognition, reduction, redistribution, reward, and representation of care work—within employment-intensive public investment strategies.

“Embedding the 5Rs in employment-intensive investments will help to close gender gaps, provide positive labour market outcomes for women, and ensure decent work for all,” King stated.

This approach ensures that the care economy is not only expanded but also just, equitable, and sustainable for all workers.

Policy Recommendations and Call to Action

The ILO urges governments, development banks, and social partners to:

• Integrate care services into national infrastructure planning

• Use labour-based methods that generate local employment

• Professionalize care work and align it with international labour standards

• Build community-centered facilities that address pressing care needs while generating inclusive employment

Building Societies That Care

As the global economy faces intersecting crises—from ageing populations and care gaps to youth unemployment and gender inequality—the ILO’s brief offers a visionary yet pragmatic pathway. By redirecting infrastructure investments toward care and community wellbeing, countries can stimulate job creation, enhance gender equality, and build more compassionate societies.

In doing so, governments are not just investing in concrete and steel—they’re investing in people, equity, and a more resilient future for all.