Closing the gender gap in labor force participation can significantly boost emerging and developing economies’ gross domestic product by about 8 percent over the next few years, according to the International Monetary Fund.
The IMF stated that raising the rate of female labor force participation by 5.9 percentage points in these countries can promote inclusive growth in the wake of the world’s weakest medium-term economic growth outlook in more than three decades.
While global growth is expected to remain at just 3 percent over the next five years, increasing the number of women active in today’s labor markets can generate “substantial” returns for countries.
The IMF cited that only 47 percent of women are currently active in the labor market, compared to 72 percent of men. This gender gap remains unacceptably wide and is due to unfair laws, unequal access to services, discriminatory attitudes, and other barriers that prevent women from realizing their full economic potential.
Despite numerous studies highlighting the economic case and basic human rights argument for gender equality, gaps persist in education, health, work, wages, and labor participation across developed and developing countries.
However, reducing the current wage and employment gap between men and women may boost the GDP of developed and emerging markets by 5 percent to 6 percent and could result in a 10 percent GDP boost for developed market economies, rising to 13 percent in emerging markets if these gaps are completely closed.
The increasing participation of women in Saudi Arabia’s workforce is also expected to boost the country’s economy by $39 billion, or 3.5 percent, by 2032 if the current growth rate continues.
