Bridge the gap

Poor countries provide fewer opportunities to women

The position of women in the workforce is generally understood to be central to the speed and quality of a nation’s growth, as well as to its ability to improve its social indicators. Much attention has been paid to female unemployment as well as to the labour force participation rate for women. But in an international perspective, both may fail to capture elements of female labour status that are of great importance. It is in this context that the International Labour Organization (ILO) has released a research paper that delves deeper into the earnings and employment gap between men and women. The ILO, for this paper, began by simply calculating the ratio of individuals with jobs to those who would like to work. This is different from the unemployment rate, which measures those in employment as compared to those who are both available to work and are actively seeking a job. Global unemployment rates appear to be below 6 per cent at the moment, but with this more inclusive indicator, they rise to 12 per cent.

It is in regional and gender breakdowns, however, that the real problems become apparent. While official unemployment rates across regions and genders appear reasonably comparable when all those who would like employment are factored in, the problematic status of women as workers in low- and lower-middle income countries becomes apparent. Almost a quarter of women who would like to work in low-income countries cannot find jobs, and the equivalent number for those in lower-middle income countries is 17.4 per cent. The ILO further demonstrates that this is not a product of the pandemic or the sovereign debt crisis but is in line with stable long-term trends in the job market. The paper argues that the evidence suggests that there are both fewer opportunities available to women in the workforce and greater challenges in taking advantage of whatever opportunities may be accessible.

The problems do not stop there, however. Even if all women seeking a job managed to find employment, their labour income would remain far below that of male workers. In high-income countries, women earn about 58 per cent of what men do; but in low-income countries that figure is 29 per cent, and in lower-middle income countries it is 33 per cent. In other words, not only the availability but also the quality of female employment opportunities must be enhanced for gender inclusion. India is one of the countries that is particularly badly off in terms of female labour force participation. A priority for the government must be increasing access and also putting in place the broader environment that allows women to seize the opportunities on offer. This would include a safer law and order situation; more work opportunities physically closer to home; and a wider social change that raises the societal acceptance of women working outside the home.

There is one last twist to the story. The ILO does not discuss the fact that a country’s income status and the prevalence of female work may in fact be co-determined. In other words, it is not just that poorer countries have fewer women able to find jobs if they want them. It may also be the case that fewer such opportunities for women are what keep countries poor.