The Value of Addressing the Underemployment of Mothers
The hidden form of economic inactivity that could unlock socioeconomic returns for the Northern Ireland economy
EY
The project aims to investigate the economic and social costs of underemployment in Northern Ireland (NI), focusing particularly on the underemployment of mothers and the critical role of childcare provision.
Economic inactivity is a significant concern for policymakers in NI, with certain demographics, especially women with caregiving responsibilities, disproportionately affected. Despite some improvements, NI's economic inactivity rate remains higher than the UK average, highlighting a complex issue beyond employment status. High childcare costs and inadequate support systems deter many parents, particularly mothers, from fully engaging in the workforce. Reports indicate that a significant percentage of mothers struggle to find suitable childcare, resulting in substantial earnings losses. Although the implications of economic inactivity in NI are well documented, underemployment is an underrepresented issue. While the cost of mothers’ underemployment has been studied in ROI and the UK, a Northern Ireland-specific investigation has not been undertaken to date. Given the divergence of childcare policies and supports between NI and its counterparts, tight labour market conditions, and skills shortages, this may be a costly knowledge gap. The study will utilise existing research from other regions alongside analysis specific to NI to estimate the financial implications of underemployment, assess its broader socioeconomic impacts and explore the potential benefits of improving childcare access and quality.
By addressing the barriers faced by working mothers, the research seeks to contribute to reducing the gender employment gap and fostering economic inclusivity, aligning with key policy initiatives aimed at enhancing labour market outcomes and promoting gender equality. Ultimately, this study will provide policymakers with essential evidence to support interventions that could significantly enhance workforce participation among parents, driving long-term economic growth and prosperity in NI.
