Increasing the number of Women in the Workforce may Boost the Global Economy by $7 trillion: Report

By: WE Staff | Thursday, 2 March 2023

Recent Moody's Analytics research has highlighted the uneven and limited progress made in advancing women in the workforce. The gender gap widens in top positions, where women hold only 23% of executive jobs, the research claims. This is a worrying phenomenon that might impede global as well as Indian economic development.

According to Dawn Holland, Director of Economic Research at Moody's Analytics, bridging the gender gap might have a significant positive impact on India's economic potential. In India, barely 15–16 percent of women hold executive roles; this gender disparity must be corrected. The gender wage gap must be closed in order to increase labour force participation and unleash India's potential for better growth.

"India has the potential to reap very large economic rewards from closing the gender gap. Fewer than 30% of women who are working age are actively employed, and if you take a look at the share of managerial jobs held by women, that share drops to 15–16%. So, closing those gaps will enable India to employ a lot more people and potentially expand its economy more quickly, according to Holland.

The research also emphasises the low proportion of female leaders in industries like information and technology that are predicted to drive future productivity. This is troubling since these industries are essential to future development and prosperity.

According to the report, policies like flexible working hours, inexpensive child care, and paid maternity and paternity leave will contribute in bringing about positive change.

Holland claimed that more women than ever before hold advanced degrees and possess the necessary skills, but that the lack of workplace flexibility is preventing them from advancing. This is a serious issue since it affects not just the capacity of these women but also the general economic development of countries.

According to the analysis, closing the gender gap could increase the global Economy by $7 trillion. This big number highlights how economically vital it is to overcome the gender wage gap in the workplace. To build a more diverse and inclusive workforce where everyone can contribute to the best extent of their abilities, governments, organisations, and enterprises must collaborate.