Young Women's Finances Fall Behind Early

The factors shaping young people's financial situation lay the foundation for their future work and financial security. The gender-segregated labour market creates differences in working conditions for young women and men from the very beginning. Young women tend to receive lower wages and more insecure employment than young men early on. These unequal conditions for work and income create barriers to financial equality for young people," says Hannah Alvå, analyst at the Swedish Gender Equality Agency.

The new report highlights the importance of social networks and connections in gaining access to the labour market. Education and background now play a greater role in determining young people's employment opportunities than before. Different starting points lead to different opportunities for various groups of young people, which is also evident in debt patterns. While young men tend to have higher levels of debt, debt is rising sharply among young women, a trend linked to online shopping habits.

"An unstable financial situation increases the risk of worry and anxiety, which we see particularly among young women. When young people, especially young women, experience stress at an increasingly early age, they face difficulties entering the workforce, which in turn leads to further financial problems," says Hannah Alvå.

Read more about economic equality.