The economic gender gap has been a persistent issue for women in almost every part of the world, and some countries have a larger gap than others. There are many factors that contribute to the existence of the gender gap, and it can prove difficult to move forward with its full closure in a short amount of time. In fact, it is predicted that some countries in East Asia may not see the gap close for another 189 years, while countries in Latin America and the Caribbean could see it close in 53 years.
Even 53 years, or Europe’s 67 years, are long ways to go. For North America, it is looking like the gender gap will close in 95 years, providing future generations of women with a better experience in gender equality. Keep reading to continue to explore deeper into the worldwide gender gap and the factors that go into why it exists.
Why is there a gender gap in 2025?
There are many different ways to answer the question of why the economic gender gap exists. Studies show that only 47.7% of working-age women are participating in the global workforce, meaning that for every two men that are employed, there is only one employed woman. This can be due to several reasons, with many women caring for children or other family members, having less access to opportunities than their male counterparts, or simply wishing to avoid gender-based discrimination and less pay than men.
Economic policies with the purpose of advancing gender equality have been introduced in many places around the world, the adoption and implementation of them may take a long time if it is even done in an effective manner. Some countries may be less enthusiastic about embracing the benefits of closing the gender gap and ensuring full support of women in the workforce, which can lead to improved productivity and more innovative outcomes. The recognition of both men and women’s participation in equal caregiving is one such action that has proven to increase women’s involvement in the workforce.
Bias towards women has presented itself more in leadership roles overall, with women holding 31.7% of senior leadership positions. Less women have been hired into leadership in 2024 compared to the years prior, the reason potentially being tied to worsening macroeconomic conditions.
Exploring the gender gap in Europe
While Europe is on track to closing the gender pay gap faster than other areas of the world, the difference in pay between men and women is still very evident. In 2022, the gender gap was 12.7% in the EU, meaning women earned 12.7% on average less per hour than men. So, despite improvements in gender workforce equality, there is still much work to be done. Luxembourg was reported as the only country with a negative gap (-0.7%), which means that women actually earned slightly more than men.
The European Commission is on a mission to close the gap, and they have compiled several reasons as to why it still exists. They predict that 24% of the gender pay gap is due to the overrepresentation of women in relatively low-paying sectors, which may include care, health and education. Other factors are discrimination and the glass ceiling, with much lower representation of women than men in higher level positions. The tech industry shows little to no difference in a gender pay gap at senior levels, but it is a lot more difficult for women to make their way up into those roles.
Closing the gap in Latin America
Latin America and the Caribbean are on track to close the gender gap faster than most other regions of the world. Despite the machismo and marianismo cultures that exist in Latin America, which asserts male dominance and emphasizes women as caregivers and homemakers, women entrepreneurs are a very influential force in Latin American countries. Some countries like Argentina, which was the first to do so, have passed gender quota laws, which challenges the cultures that previously took root. However, there is more to gender equality than simply filling a seat in a high level position, so it is important for women in these roles to continue to effectively define female leadership.
Through a large shift in resources and mindsets, countries around the world have the potential to officially achieve gender equality in the workforce. Even as many factors continue to hold women back from truly reaching that goal, there are many resilient individuals that continue to pave the way for others and contribute to the greater mission of living in a more equitable society.
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