By Catalina Pardo, Manager at Apparcel Uriarte Abogados.
Over the past thirty years, there has been an increase in female participation in the workforce, yet we are still far from reaching similar participation levels to those of men. Recent research shows that the female labor participation rate (an indicator showing the proportion of the working-age population that is either working or actively seeking work) is approximately 51%, compared to 70% for men, representing a 19% gap. This gap can be seen as a problem, as it may negatively impact the country’s economic growth.
How so? Currently, the Central Bank projects economic growth for Chile at 1.8% for 2025, a figure that analysts consider low or below the expected path for growth. This low projection is a call to explore all possible ways to boost our economy, and a significant solution is within reach: a study by Clapes UC estimates that each percentage point increase in female labor participation in Chile could translate into a 0.5% rise in GDP. This means that if we could incorporate the 10% of women who are currently not in the workforce, the GDP could increase by up to 5%, surpassing the 5% threshold.
However, one of the main barriers to increasing female participation in the labor market is the ability to balance professional development with childcare responsibilities. This is the primary reason why more than a million women are not working.
Some of the reasons behind this can be found in current labor legislation, which is highly rigid, and in the lack of regulations aimed at encouraging female participation in the workforce, such as the Universal Childcare Law, whose proposal is still, like a newborn, “asleep” in Congress. This initiative has the potential to free up time and capacity for thousands of women who, with access to adequate childcare, could re-enter the workforce, advancing their professional development and contributing to economic growth.
This initiative seeks to provide a safe and accessible space for the care of young children and also has the potential to transform labor market dynamics by facilitating women’s inclusion in the workforce.
This inclusion not only diversifies the available perspectives and skills but also drives productivity and innovation. Studies have shown that economies with greater female inclusion tend to grow faster and more sustainably.
Another pillar for increasing female participation in the workforce should consider complementary policies that promote shared responsibility at home so that both men and women share childcare responsibilities.
The focus should be on optimizing available resources and dedicating them to solving the most pressing problems. In this case, enhancing female labor participation is not only an issue of equity but also a key tool for revitalizing our economy. So, we ask ourselves: what is needed to advance policies that truly promote female participation in the workforce? Is it a question of resources or priorities?
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