Globally, labor force participation of women is lower than that of men. Furthermore, most women work in the informal sector and are more likely to face significant wage gaps or to be unpaid for their work. A 2013 report, “, highlighted how gender inequality in the workforce can hurt economic growth.
According to the report, closing gender gaps in the labor market can raise GDP in the US by 5%, in the United Arab Emirates by 12%, and in Egypt by 34%. Particularly, the economic gains of gender equality are high in fast aging societies, where improving labor force participation of women could offset the effect of a shrinking workforce.
In addition, according to a published by the International Finance Corporation (IFC), better employment opportunities for women contribute to increased productivity and profitability in the private sector. Firms that invest in the employment of women find that it benefits them by improving innovation, staff retention, and access to new markets and talent.
Generally, better jobs for women are beneficial to companies, individuals, families, and economies. With financial independence and more income, women increase household spending on children’s education, health, and nutrition.