The State Bank of Pakistan (SBP) in its recent reports estimated that narrowing down the gap in Female Labor Force Participation (FLFP) can generate 19.3 million jobs and boost Pakistan’s GDP by almost 23 percent.
The report suggested the government and private sector bring key reform areas to facilitate the female workforce including focus on the availability of safe transportation for women, better documentation of the economy, and increasing educational attainment.
Also, the legislation to protect workers lacking legal coverage will impact female labor force participation favorably.
The digital connectivity gaps are still widely prevalent as Pakistani women are 49 percent less likely than men to use mobile internet and only one percent of the female internet users reported using it for work. Hence, bridging connectivity gaps is crucial for enhancing FLFP.
Despite the home-based workers making a significant economic contribution to the economy, they remain vulnerable to exploitation, longer working hours, and lower wages because of a lack of formal contractual agreements.
Moreover, according to the Global Wage Report 2018-19 (ILO), on average, women in Pakistan earn 34 percent less than men.
However, the average wages of women have grown over time but still remain lower than men. In addition to lower wages, women remain underrepresented in Managerial positions too. As per LFS 2020-2021, only 5.7 percent of employed women hold managerial positions.
Women continue to be missing from the labor market due to a number of barriers. The most important is low educational attainment. Participation in the labor force increases as education levels rise. The gap between male and female education needs to be bridged to ensure equal labor force participation.
Gender Gap in Pakistan One of the Highest in South Asia
In line with the global trends, in Pakistan, the FLFP is considerably lower than that of men.
The findings from the labor force survey 2020-2021 suggest that almost 44.9 percent of the overall population is in the labor force, out of which, men comprise 67.9 percent, whereas female labor force participation (FLFP) is only 21.4 percent.
Over time, female labor force participation has increased but despite this increase, Pakistan’s female labor force participation is still one of the lowest among peer economies.
Other regional countries like Bangladesh and Indonesia have made significant progress in terms of increasing FLFP. Consider the example of Bangladesh, where female labor force participation is estimated to be 37 percent, the growth in FLFP has mainly occurred on the back of expanding the ready-made garment sector.
This development has played a crucial role in their economy and helped boost exports. Bangladesh has managed to create more paid job opportunities as compared to Pakistan resulting in a higher FLFP. Another reason for a higher FLFP in Bangladesh is the lower education gaps between men and women.
In conclusion, the absence of women from the labor market on this scale not only deprives women of economic opportunities but also translates into lower productivity and lost growth potential for countries.
