What is the estimated economic boost for Mexico if women joined the workforce equally?

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Mexico's Economy Could Grow Significantly With Increased Female Labour Force Participation

Mexico's annual economic activity could experience a substantial increase of over 25 per cent, equating to approximately US$390.5 billion (RM1.7 trillion), if women participated in the labour force at the same rate as men. This potential economic surge is largely contingent on addressing barriers that currently limit female employment, with childcare access identified as a primary obstacle.
Potential Economic Gains from Parity

Achieving gender parity in labour force participation could add more than a quarter to Mexico's annual economic output. This significant boost, estimated at over US$390.5 billion, highlights the substantial untapped economic potential within the country. Furthermore, aligning female employment levels with those of the United States would contribute an estimated US$132 billion to Mexico's economy.
Current Disparities in Labour Force Participation

Currently, only 45.6 per cent of working-age Mexican women are employed, a stark contrast to the 77.5 per cent employment rate for men, according to World Bank data cited in a report by the Milken Institute. For comparative context, 57.3 per cent of women in the US were employed in 2023. This disparity positions Mexico among the economies with some of the lowest female labour force participation rates in the Latin American region.
The Impact of Childcare on Female Employment

The primary factor hindering women's entry and continued participation in the workforce is the availability and cost of infant and childcare. Mexico faces one of the highest "child penalties" globally, which quantifies the negative effect of having children on the male-to-female employment ratio. The expansion of high-quality, affordable childcare services is therefore identified as a critical public policy area requiring significant investment.
Public Desire for Increased Female Employment

Despite existing barriers, there is a considerable desire for greater female workforce participation in Mexico. Nearly 65 per cent of Mexican women have expressed a wish to work, either full-time or while managing household responsibilities. Moreover, a significant majority of men, 78 per cent, indicated a preference for women to be employed. President-elect Claudia Sheinbaum has also pledged to reinstate government-run "early education centres," signalling a potential policy shift towards supporting working mothers.

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What is the estimated economic boost for Mexico if women joined the workforce equally?

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