In 2013, the Japanese government introduced “Womenomics,” a policy aimed at boosting the economy by increasing women’s participation in the workforce. This initiative, announced by former Prime Minister Shinzo Abe, was built on research from 1999 by Kathy Matsui, who coined the term in her work “Womenomics: Buy the Female Economy.”
Kathy Matsui, former vice chair and chief Japan strategist at Goldman Sachs, was among the first in Japan to recognise the importance of supporting women’s employment. She believes Womenomics aims to unlock the untapped potential of women in the workforce to promote economic growth and address gender inequality in the workforce. Since Womenomics began, Japan has made some progress. The labour participation rate for women aged 15 to 64 rose from 56% to 72%, adding about three million women to the workforce.
The idea of Womenomics is not something that should be limited to just one country. With the 2024 Global Gender Gap Report’s estimate that gender parity is 134 years away, the goal of increasing women’s workforce participation should be on every country’s agenda.
Will Womenomics make a difference? The data says yes
According to the World Bank, if women were employed at the same rate as men, long-term income per capita could increase by nearly 20%. Estimates also suggest that closing the gender gap could potentially add USD 7 trillion to the global economy. In middle-income countries, particularly in the Middle East, North Africa, and South Asia, closing gender employment gaps could increase GDP per capita by 40-80%.
The World Bank report highlights the significant economic benefits of closing the gender gap in labour force participation across South Asia. The traditionally male-dominated manufacturing sector would see the most significant gains, followed by the services sector. In India, specifically, the report estimates that the country’s manufacturing output could increase by 9% if more women joined the workforce.
With more women contributing economically, the workforce becomes more balanced, providing a diverse range of skills and perspectives. Moreover, increasing women’s participation in the workforce is not just about gender equality. It’s a practical solution to some of the most pressing issues affecting many countries today.
Why is Womenomics important?
Traditional gender roles often dictate that men take on the responsibility of earning for the family. At the same time, women manage the household and care for children. While this arrangement may seem functional to some, it places a disproportionate burden on men. Moreover, it sidelines nearly half of the population from economic activities. This outdated system makes men carry the full weight of financial responsibilities. Additionally, it creates long-term challenges for economies and societies.
Meanwhile, women’s contributions are confined to the domestic sphere, leaving their talents, skills, and potential unutilised in the workforce. As a result, only one segment of the population participates in economic activities. That creates an imbalance in labour markets. Over time, as this predominantly male workforce ages, a shortage of workers emerges.
Womenomics can help address the barriers that prevent women from fully participating in the economy. It includes closing the gender pay gap, offering paid parental leave, and providing access to affordable childcare. Womenomics is also about recognising the value that women bring to the economy and society as a whole.
But why does Womenomics remain out of reach?
Over 2.7 billion women are legally restricted from having the same job opportunities as men. In 2023, more than one-third of the world’s economies (69 countries) had laws that directly or indirectly limit women’s choices when it comes to work. These laws may restrict women from working in certain industries, require permission from a male guardian or husband, or place additional barriers to their full participation in the workforce.
On top of that, 43 economies have no laws in place to protect women from sexual harassment at work. It further discourages women from seeking employment and advancing in their careers. In India, the barrier to implementing Womenomics is about what happens before women even step into the office or factory. It is the unpaid care work they are expected to do at home.
The majority of women end up working part-time or in informal work. That is because full-time employment is seen as incompatible with their family roles. Furthermore, because this work is unpaid, it is not factored into economic indicators like GDP. That distorts the true scope of women’s contributions to the economy.
Other challenges that women face
Women face many challenges when starting businesses. They have less access to funding, networks, and resources. That makes it harder for them to get their ideas off the ground. This gap widens later as women not only struggle to start businesses but also face difficulties keeping them going.
Without addressing these barriers, the promise of Womenomics, an economy that benefits from the full participation of both men and women, remains out of reach.
The final thoughts
Womenomics is pushing for a future where gender equality in the workforce is no longer a distant goal but a present reality. The economic benefits of closing the gender gap are clear: higher GDP, more diverse workforces, and a more sustainable economy. But these benefits will remain out of reach unless we tackle the root causes of women’s exclusion from the workforce. These root causes include unpaid care work, discriminatory laws, and the lack of support for women entrepreneurs.
Research sources
- Asia Pacific Curriculum: Womenics in Japan
- Goldman Sachs: Womenics 25 Years and the Quiet Revolution
- World Bank: How much would GDP per capita increase if gender employment gaps were closed in developing countries?
- UN Women Facts and figures: Economic empowerment
Disclaimer: The views expressed in this article are based on the writer’s insights, supported by data and resources available both online and offline, as applicable. Changeincontent.com is committed to promoting inclusivity across all forms of content. We broadly define inclusivity as media, policies, law, and history—encompassing all elements that influence the lives of women and gender-queer individuals. Our goal is to promote understanding and advocate for comprehensive inclusivity.
