The future of work is about more than technology—it’s about representation. Despite being half the population, women hold just 26.5% of parliamentary seats and 22.9% of ministerial positions, creating an economic imbalance with real consequences.
Women in political leadership drive economic growth. According to the World Economic Forum’s latest report, a 10-percentage-point rise in women’s parliamentary representation correlates with a 0.7 percentage-point increase in GDP growth. Countries with more female leaders enact policies promoting gender-equal labor markets, such as paid family leave, pay transparency, and childcare support—boosting workforce participation, productivity, and economic expansion.
Yet, gender parity in political leadership remains 169 years away. Without systemic policy reforms, labor market inequalities will persist, limiting economic potential. As AI disrupts industries and economic uncertainty rises, bridging the gender gap in leadership is an economic necessity according to the WEF.
Women in Politics Shape Workforce Policies
Political decisions shape labor markets, from tax policies to healthcare and education. When women are underrepresented in leadership, policies addressing gender-specific labor barriers are often lacking. Research cited by the World Economic Forum shows that female politicians prioritize policies that stimulate economic growth—such as education, healthcare, and parental leave. These measures enhance workforce participation and long-term financial stability.
The World Economic Forum estimates that closing gender gaps in employment could boost global GDP by $12 trillion, an 11% increase in economic output. Achieving this requires policy shifts that happen faster when women are in leadership roles.
How Women Leaders Drive Gender-Equal Labor Policies
Paid parental leave and accessible childcare are crucial for retaining women in the workforce. During the COVID-19 pandemic, women’s unpaid labor increased by 153%, and they still perform 2.8 more hours of unpaid work daily than men. According to the World Economic Forum, countries with strong female leadership invest in early education and family leave.
Pay transparency laws reduce wage gaps. Countries like Germany, Canada, and the UK, where women hold more leadership roles, have introduced pay transparency mandates that shrink wage disparities.
In the European Union, where female representation averages 32%, the Pay Transparency Directive requires companies to report gender pay gaps. Research highlights that these policies stem from political leadership that prioritizes economic fairness. By contrast, countries with lower female political representation have weaker wage equality enforcement.
Stark Regional Differences
The chart “Share of Economies with Laws Regarding Equal Pay in 2024 ” reveals stark regional disparities in pay equity legislation. Europe leads with 87.2% of countries enforcing equal pay laws, while regions like Southern Asia (20%) and Central Asia (28.6%) fall significantly behind. These findings highlight the urgent need for stronger legislative frameworks worldwide to close the gender pay gap and foster economic fairness.
Breaking the 169-Year Political Leadership Barrier: Recommendations from WEF
Countries with gender quotas for political office see faster increases in female representation.
The World Economic Forum highlights that Mexico, Argentina, France, and Norway have also seen positive results. While quotas face criticism for potential tokenism, data confirms they accelerate gender parity and economic benefits.
Countries like New Zealand, Canada, and Sweden have introduced childcare and parental leave policies for female politicians, making leadership more accessible.
Women face financial and systemic challenges in politics, including biased political parties and unpaid caregiving responsibilities. According to World Economic Forum research, U.S. women running for Congress raise 29% less than men, while Mexican female candidates received 38% less public funding before parity reforms.
Governments and businesses must ensure corporate leadership reflects workforce demographics. The World Economic Forum’s analysis suggests that countries with greater gender diversity on corporate boards tend to have stronger labor policies supporting equality.
See the PDF of the Global Gender Report here.