Women’s participation in the labor market is more than an issue of equality—it is a powerful engine for sustainable development and poverty reduction in Latin America and the Caribbean. From aspiring entrepreneurs to future leaders, women across the region are poised to make significant strides. Yet, persistent barriers—whether in urban centers or remote communities—continue to limit their full potential.
Despite progress, gender disparities remain stark. Recent data shows the labor force participation rate for women in the region is just 68%, compared to 93% for men. Moreover, women continue to earn only 70 cents for every dollar earned by their male counterparts and are more likely to work in informal or lower-quality jobs.
A Ground-Level Perspective
In southern Mexico, Laura Pérez, founder of Yubani—a brand that transforms regional medicinal plants into commercial products—represents the power of grassroots entrepreneurship. Her success is part of the MDE initiative, which has already integrated over 3,800 rural residents into the economy and generated US$3.7 million in annual income for participating communities.
Programs like these not only lift families out of poverty but also provide a critical boost to local economies, especially for vulnerable populations. Studies show that women aged 25 to 35 are still seven percentage points more likely to live in poverty than men in the same age group.
The Economic Cost of Inequality
The economic impact of gender inequality is significant. In 2018, the Dominican Republic lost an estimated US$185.4 billion in human capital due to gender disparities—equal to 2.2% of its GDP. Similarly, Uruguay could increase its per capita GDP by 13%, or roughly US$2,100 per person, if women participated equally in the labor force.
Women’s economic inclusion also generates wide-ranging social benefits—reducing adolescent fertility rates, increasing investments in children’s health and education, and strengthening community networks. For example, in Quito, Ecuador, women make up 40% of the metro workforce, playing key roles such as train operation and traffic control.
Digital Transformation and New Avenues
The rise of digital platforms and remote work has opened new doors for women, particularly those previously constrained by in-person work structures. However, the digital divide remains a challenge—women in the region are up to 19 percentage points less likely than men to have internet access.
Projects like DIGITAGRO in Guatemala are bridging this gap. The initiative connected women farmers to national school meal programs through digital tools, leading to a 21% increase in awareness, a 12% rise in sales of animal products, and a 31.5% increase in prices received by female entrepreneurs.
Breaking the Cycle of Occupational Segregation
On average, women in the region spend 2–3 times more than men on unpaid domestic and caregiving work. While some Caribbean countries show progress, many women still face occupational segregation, limiting access to higher-paying, stable roles.
Education in STEM (Science, Technology, Engineering, and Mathematics) is critical for closing this gap. Currently, women account for far fewer graduates in these fields compared to men. In Argentina, the World Bank supported a mentoring program in 2024 to support women in engineering and energy, helping them build skills and networks to thrive in male-dominated industries.
The Path Forward
Achieving gender equality in the workforce requires long-term, collaborative efforts. The World Bank continues to support initiatives across the region, from technical training to social protection programs. In Brazil, the Bolsa Familia program reached 31.65 million women, making up 58.2% of its beneficiaries. From 2011 to 2021, women’s employment in Brazil grew by 25%, with employment among Afro-Brazilian women increasing by 50%.
Conclusion: Investing in Women, Investing in the Future
Ensuring equal employment opportunities for women is not just a matter of fairness—it’s a strategic imperative for economic growth and social stability. As countries across Latin America and the Caribbean seek inclusive development, empowering women in the workforce is essential to building a stronger, more equitable, and sustainable future for all.
