Mexico's Economic Growth Tied to Female Workforce Participation

Mexico could significantly boost its economy if women participated in the labor force as men do. A Milken Institute report highlights the need for better childcare access. The report suggests that increasing female employment to U.S. levels could add $132 billion to Mexico's economy.

Mexico could increase its annual economic activity by over 25%, or $390.5 billion, if women joined the labor force at the same rate as men, according to a report released on Tuesday.

Apart from bolstering the economy, enhancing access to childcare is crucial for bringing more women into the workforce, the U.S. think tank Milken Institute noted. The report cites World Bank data showing that 45.6% of working-age Mexican women are employed, compared to 77.5% of men. Matching the U.S. female employment rate could add $132 billion to Mexico's economy. As of 2023, 57.3% of U.S. women were employed.

The report, led by researcher Maggie Switek, points out that childcare availability is a primary factor keeping women out of the workforce. Mexico has one of the world's highest 'child penalties' impacting the male-to-female employment ratio. Expanding high-quality, low-cost childcare should be a clear public policy priority for Mexico, according to Switek, who also cited Japan's success in this area.

Mexico, Latin America's second-largest economy, has one of the region's lowest rates of female labor participation. The institute's findings show that 65% of Mexican women want to work, and 78% of men support this. President-elect Claudia Sheinbaum, set to become Mexico's first female president, has vowed to reinstate government-run 'early education centers.'

(With inputs from agencies.)