Why the private sector should care about women's political representation

Business and government leaders are facing some of the biggest economic challenges in decades. Women could be part of the solution. The global labour force growth rate is projected to fall to just 0.6% annually over the next 25 years. This is low – especially for developed economies – and less than half the 1.3% rate over the past 35 years.

That, in turn, is expected to weigh on global GDP growth, which could create fiscal stress and reduce living standards. And unlike in the 1990s and early 2000s, companies and governments can’t sit back and count on low capital costs, free trade, and geopolitical stability to drive growth.

One major potential boost: removing barriers that prevent women from entering the workforce. Global labour force participation, or the percentage of people working or actively looking for work, was 67.1% for women in 2024, compared with 81% for men, according to the Organization for Economic Cooperation and Development (OECD).

Shrinking that disparity would help offset changing demographic trends, including a drop in fertility rates in many economies that is expected to slow labour-force participation in the years ahead. All told, closing the gender gap could double the current world economic growth rate over the next decade, increasing global GDP by more than 20%, according to a recent report by World Bank Women, Business and the Law.

Politics can play a part. Women are more likely to enter the workforce if they have legal protections against discrimination, flexible work schedules, subsidized childcare, and other benefits. Such policies occur more often in nations where women are elected to legislatures and cabinet positions, according to a new report by the Oliver Wyman Forum, Women Political Leaders (WPL), and World Bank Women, Business and the Law.

There’s also a great deal that the private sector can do to attract and retain much-needed female employees. Talent attraction and retention was the fourth highest-ranking concern for CEOs of New York Stock Exchange-listed companies, according to a report by the Oliver Wyman Forum and the NYSE. Business can play a part by providing more access to care, flexible work options, and gender equality in the workplace.

Women handle most of the caregiving in families – for children and adults alike. This burden will worsen as the global population ages. A lack of access and the enormous cost of care already impact whether a woman chooses to be in the workforce; the cost in the United States now ranges from 8% to 19% of total family income, according to the US Chamber of Commerce.

The private and public sectors could each help by providing on-site or subsidized care, and formalized paid parent leave to help families find and afford care. Providing these benefits helps employees, shareholders and the national economy. The enactment of childcare laws increased women’s labour force participation by 2% on average, and by as much as 4% after five years of enactment, according to World Bank research.

It is critical to provide policies and infrastructure that enable male and female employees to balance work and family life. A 2021 Pew survey found that 45% of workers reported leaving the workforce because it lacked flexibility. Women rank flexibility among the top three reasons to stay with an employer, behind only pay and healthcare benefits, according to a 2024 study by Mercer.

Older workers also value more flexible work schedules. Over half – 54% – of respondents aged 55 to 67 said job flexibility is one of the top two requirements when considering a job, according to Randstad’s annual Workmonitor report. Businesses have come a long way since COVID-19 in offering a variety of work arrangements, including flexible hours, remote work, and paid family leave, but many have not embedded it in organizational culture and accepted norms. Such changes encourage all employees to use these benefits, placing the burdens of care (for our young or our elders) more equally on women and men.

The private sector can advance women’s political representation by fostering gender equality in the workplace, and also investing in gender education for men – who are often in leadership positions that can block or support female progress. Companies can, for example, implement robust anti-discrimination and anti-harassment internal policies, adopt and enforce equal pay and pay transparency measures, and establish mentorship and sponsorship programmes that cultivate a strong pipeline of female leaders at every level.

Tracking metrics and key performance indicators (KPIs) provides insights that can improve and ensure progress. Quotas have enabled many countries to quickly make progress on the number of women in public office and on boards. Norway, for example, implemented a gender quota of 40% representation on public company boards in 2003. Several other countries have followed this example. Some companies have implemented voluntary gender quotas for board or management positions.

An increasing number of women are consumers who want more women in the workplace designing their products and services. Businesses that are ahead of the curve, and industries where many women are the main consumers, are already adapting to get more female talent into the workforce. Businesses should use those trends to create the “pull” to create change faster.

To boost growth in the years ahead, the public and private sectors need to work together to increase women’s workforce participation. It won’t happen overnight. But if governments can reform discriminatory laws and enhance workplace safety, and businesses can create better infrastructure for women to thrive, the share of women in the workforce can grow – and so can national economies.