WEBVTT 1 00:00:00.480 --> 00:00:02.400 - I'm Edie Lush and I'm here at Davos. 2 00:00:02.400 --> 00:00:04.080 It is 2023. 3 00:00:04.080 --> 00:00:07.080 Really pleased to be here in the studio 4 00:00:07.080 --> 00:00:08.720 with our partner BCG 5 00:00:08.720 --> 00:00:11.480 and I'm absolutely delighted to be here 6 00:00:11.480 --> 00:00:12.720 with Sharon Marcil. 7 00:00:12.720 --> 00:00:13.880 Thanks for stopping by. 8 00:00:13.880 --> 00:00:15.120 How are you? - Oh, I'm good. 9 00:00:15.120 --> 00:00:15.960 It's great to be here. 10 00:00:15.960 --> 00:00:16.880 - Good. - Thank you. 11 00:00:16.880 --> 00:00:17.720 - So, Sharon, 12 00:00:17.720 --> 00:00:20.400 you are the North America Regional Chair 13 00:00:20.400 --> 00:00:21.560 for Boston Consulting Group. 14 00:00:21.560 --> 00:00:22.560 - Yes I am. 15 00:00:22.560 --> 00:00:24.320 - And you're going to talk to me about a subject 16 00:00:24.320 --> 00:00:26.480 that I care passionately about, 17 00:00:26.480 --> 00:00:28.080 which is the care economy. 18 00:00:28.080 --> 00:00:30.280 But as a good journalist, let's define our terms. 19 00:00:30.280 --> 00:00:31.680 What is the care economy? 20 00:00:31.680 --> 00:00:33.640 - Okay. So, Edie, the care economy 21 00:00:33.640 --> 00:00:38.640 is the $6 trillion economy within the US for care. 22 00:00:39.400 --> 00:00:42.560 And 4 trillion of that is actually unpaid, 23 00:00:42.560 --> 00:00:44.560 2 trillion of it is paid 24 00:00:44.560 --> 00:00:48.160 and people typically think of that being for childcare 25 00:00:48.160 --> 00:00:50.160 but this is the entire care network. 26 00:00:50.160 --> 00:00:52.400 So, it includes eldercare, spouse care. 27 00:00:52.400 --> 00:00:54.800 $6 trillion economy. 28 00:00:54.800 --> 00:00:56.840 - It's extraordinarily large. 29 00:00:56.840 --> 00:00:58.920 And as somebody who has 30 00:00:58.920 --> 00:01:01.640 taken time off work 31 00:01:01.640 --> 00:01:03.080 to look after small kids 32 00:01:03.080 --> 00:01:05.040 and also who has aging parents, 33 00:01:05.040 --> 00:01:08.440 I know, and I know a lot of folks, not just women 34 00:01:08.440 --> 00:01:09.280 have issues with it. 35 00:01:09.280 --> 00:01:11.760 But tell me what the problem is with it. 36 00:01:11.760 --> 00:01:13.200 - It's a big issue. 37 00:01:13.200 --> 00:01:15.840 It's been a long-term issue due to demographics, 38 00:01:15.840 --> 00:01:16.920 people living longer, 39 00:01:16.920 --> 00:01:19.160 but the issue actually exploded during COVID. 40 00:01:19.160 --> 00:01:21.720 So, I'll share a few facts with you. 41 00:01:21.720 --> 00:01:24.480 So, if you look at the economy right now, 42 00:01:24.480 --> 00:01:27.440 there are 11 million open positions. 43 00:01:27.440 --> 00:01:30.720 1.8 million of those are in the care economy. 44 00:01:30.720 --> 00:01:31.680 Digging into that, 45 00:01:31.680 --> 00:01:35.560 if you look, for example, in nursing homes, eldercare, 46 00:01:35.560 --> 00:01:39.400 400,000 workers quit during or after COVID 47 00:01:39.400 --> 00:01:41.640 and they have not come back to the workforce. 48 00:01:41.640 --> 00:01:43.200 - And tell me why. 49 00:01:43.200 --> 00:01:44.760 - It's super hard work. 50 00:01:44.760 --> 00:01:46.120 It's really hard work. 51 00:01:46.120 --> 00:01:47.440 The pay is pretty low, 52 00:01:47.440 --> 00:01:49.520 and many of these people have 53 00:01:49.520 --> 00:01:50.920 people they need to take care of, 54 00:01:50.920 --> 00:01:52.920 whether it's their parents or their children. 55 00:01:52.920 --> 00:01:54.080 And so, they're weighing, 56 00:01:54.080 --> 00:01:56.480 the cost of gas, what they're making, 57 00:01:56.480 --> 00:01:58.080 the hard work that it is 58 00:01:58.080 --> 00:02:00.360 and they're making the choice for their family 59 00:02:00.360 --> 00:02:02.400 to not do it and to stay at home. 60 00:02:02.400 --> 00:02:04.200 If you flash that forward 61 00:02:04.200 --> 00:02:07.320 between childcare and eldercare, 62 00:02:07.320 --> 00:02:10.160 BCG estimates that in the year 2030, 63 00:02:10.160 --> 00:02:13.760 this will result in a $290 billion gap 64 00:02:13.760 --> 00:02:15.120 in terms of our economy. 65 00:02:15.120 --> 00:02:17.040 So, it's a big deal. 66 00:02:17.040 --> 00:02:17.920 - It's extraordinary. 67 00:02:17.920 --> 00:02:20.240 Okay. So, what about solutions? 68 00:02:20.240 --> 00:02:23.040 What can companies do about this? 69 00:02:24.160 --> 00:02:27.120 - It's going to take companies and government, I think, 70 00:02:27.120 --> 00:02:28.800 but I think there's a lot companies can do. 71 00:02:28.800 --> 00:02:30.120 So, first of all, embracing 72 00:02:30.120 --> 00:02:31.880 some of what we learned during COVID 73 00:02:31.880 --> 00:02:33.480 in terms of remote work. 74 00:02:33.480 --> 00:02:36.040 I think that provides flexibility in terms of care, 75 00:02:36.040 --> 00:02:38.680 reduces, obviously drive time. 76 00:02:38.680 --> 00:02:41.760 So, I think there's just the embracing of flexibility. 77 00:02:41.760 --> 00:02:43.960 The other thing is please offer 78 00:02:43.960 --> 00:02:45.400 paternity leave and maternity leave. 79 00:02:45.400 --> 00:02:48.240 We've seen a reversal of some of those policies, 80 00:02:48.240 --> 00:02:49.520 in fact, fewer companies 81 00:02:49.520 --> 00:02:51.240 offering paid paternity and maternity leave. 82 00:02:51.240 --> 00:02:54.120 - I find that extraordinary. - It's extraordinary. 83 00:02:54.120 --> 00:02:55.880 It increased for many, many years 84 00:02:55.880 --> 00:02:58.080 and now we're seeing a reversal. 85 00:02:58.080 --> 00:03:01.320 And the last thing is paid family leave. 86 00:03:01.320 --> 00:03:03.040 It's not just when you have children, 87 00:03:03.040 --> 00:03:05.160 that's not the only time that there are care needs, 88 00:03:05.160 --> 00:03:07.840 you know, whether it's a spouse or a parent, 89 00:03:07.840 --> 00:03:09.120 you need paid family leave. 90 00:03:09.120 --> 00:03:12.160 So, I think best-in-class companies are doing that 91 00:03:12.160 --> 00:03:14.000 and I think that's what companies can do. 92 00:03:14.000 --> 00:03:15.600 - Sharon, thanks so much for stopping by 93 00:03:15.600 --> 00:03:18.000 at the studio here in Davos 2023. 94 00:03:18.000 --> 00:03:19.400 And I'm Edie Lush.