Puerto Rico could boost economic growth by adding women to workforce
In Puerto Rico, women represented 42% of the workforce in 2022, a mere 6% increase over 31 years.
Women’s lack of workforce representation in the Caribbean and Latin America is detrimental to the region’s macroeconomic stability and economic growth, according to a new study.
The study, “Women Labor Force Participation and Its Impact on Economic Growth: A Study of Latin America and the Caribbean Region,” was recently published by Mohammed Saeed and Lama Shaiekh of King Abdulaziz University’s economics and political science departments, respectively.
They stressed the strong correlation between the relative position of women in society and the level of economic growth, explaining that countries that promote gender equality in their workforce are more likely to boost performance in both their private and public sectors.
In Puerto Rico, women represented 42% of the workforce in 2022, a mere 6% increase over 31 years, the authors reported, citing the most recent World Bank data.
According to that data, women in the Dominican Republic represented 39% of the workforce in 2021 compared with 31% in 1990. In Argentina, women accounted for 42% of the workforce in 2021, up just 3% from 39% in 1990. Other countries throughout Latin America and the Caribbean have experienced similar representations of women in the workforce.
“Although these countries have demonstrated progress for three decades, women empowerment has suffered due to the lack of underrepresentation in the workforce, which could explain how the reduction of poverty levels and economic growth have not been substantial,” the authors stated.
According to the study, an increase of 10 points in the women empowerment index (WEI), on a scale of one to 100, increases the growth of real gross domestic product per capita by 0.21 percentage points per year. Thus, empowering women through mobility in the workplace, entrepreneurship, pay equity, marriage rights and assets can increase the likelihood of economic improvement in the 29 countries studied.
The WEI is a composite index that measures women’s empowerment across five dimensions: life and good health, labor and financial inclusion, participation in decision-making, freedom from violence, and education, skill-building and knowledge. It was developed by the United Nations Development Programme (UNDP) and United Nations Entity for Gender Equality and the Empowerment of Women (UN-Women).
Lack of empowerment
Among the factors affecting women’s empowerment in Latin America and the Caribbean are the prevalence of patriarchal attitudes and cultural norms restricting women’s access to education, employment and decision-making roles, according to the study.
“In many countries, women are still considered primarily responsible for household and child-rearing duties, limiting their ability to pursue higher education or participate in the workforce. Moreover, women are often excluded from political and leadership positions, which means they have little influence in decision-making processes that affect their lives,” the authors stated.
Women in the region are also more likely to live in poverty than men, which limits their access to resources and opportunities. They tend to work in low-paying and insecure jobs with fewer benefits and opportunities for advancement compared with their male counterparts.
Violence against women is another factor. According to the United Nations, one in three women in the region experiences physical or sexual violence in their lifetime. This violence affects women’s physical and mental health and limits their ability to participate fully in social, economic and political life, the study noted.
Latin American and Caribbean governments should emphasize policies to develop innovative gender programming approaches, the study concluded.
“The policy should support women’s growth, emancipation and advancement. Eradicating racism and violence against women and young girls also is necessary,” the authors stated, adding that “the participation of women in decision-making, which needs to be improved, is the most critical component of socioeconomic success.”
Women in the workforce: Puerto Rico
Women represented 45.1% of Puerto Rico’s labor force in 2022, increasing gradually — 11.1 percentage points — since 1980, based on the latest data from the Puerto Rico Department of Labor and Human Resources.
Although women constitute more than half of the working-age population, fewer than 50% are involved in or available for the production of goods and services in the local economy, according to the agency’s November 2023 report: “Women’s Participation in Puerto Rico’s Labor Force.”
Since 1980, the number of women working in managerial and executive positions and in roles traditionally attributed to men, such as police officers, security guards, electricians, line workers and drivers, has increased. In education, more women are studying and training in specialized areas with better job prospects, the agency reported.
In 2022, the labor force participation rate (LFPR) of women on the island was 36.6%, up from 35.4% in 2021, 32% in 2015, and 27.8% in 1980, indicating a steady improvement over time. The LFPR is the percentage of a population that is either working or actively looking for work.
Factors such as economic development, social norms, education, cultural aspects, childcare services and enacted laws influence women’s participation in the workforce, according to the report.
The data shows a gradual decrease in the gender gap in Puerto Rico’s labor participation. In 1980, only 27.8% of working-age women participated in the labor market compared with 60.7% of men, a gender participation gap of 32.9 percentage points. By 2022, the gender participation gap was 14.8 percentage points, the agency reported, citing an increase in women entering the workforce and a decrease in male participation.
Despite women’s increased participation in Puerto Rico’s workforce, it remains below that of many other countries. Globally, the current female labor force participation is 47.2% compared with men’s at 72%, according to the International Labor Organization (ILO).
The data presented in the report was sourced from the Worker Group Survey, a statistical study conducted by the Puerto Rico Department of Labor and Human Resources that gathers monthly data on employment, unemployment and people outside the workforce, and that includes interviews of a selected sample of thousands of households by data collectors from the Bureau of Labor Statistics.
