"Reducing Barriers to Women's Economic Participation to Boost Growth and Increase Jobs"

Ministry of Gender Equality and Family Hosts '2022 Gender Equality Forum'

[Asia Economy Reporter Han Jinju] As the population structure rapidly changes and the working-age population decreases, there is a claim that reducing barriers to women's economic participation and gender gaps is essential to securing growth momentum.

On the 27th, at the 2022 Korea Gender Equality Forum hosted by the Ministry of Gender Equality and Family, Lee Insil, Director of the Korea Future Population Research Institute, delivered a keynote speech titled "The Urgent Task of Expanding Women's Economic Activity," expressing this view.

Looking at global indicators related to women's economic activity, South Korea's female labor force participation rate rose to 53.3% from 48.8% in 2000 but remains in the lower-middle tier among OECD countries. The gender wage gap ranks the lowest among OECD countries. The career interruption phenomenon is also the most pronounced among OECD nations. In particular, the employment rate of women aged 35-39 is 57.7%, lower than the OECD average of 59.0%, showing a clear "M-shaped phenomenon" where women re-enter the labor market after their 40s due to career breaks caused by childbirth and childcare.

Last year, South Korea ranked 99th out of 149 countries in the global gender gap index, with economic participation and opportunity indicators ranking 115th. The Glass Ceiling Index published by The Economist ranked South Korea 29th out of 29 countries, holding the lowest position for ten consecutive years.

Moreover, as the population structure rapidly changes, the working-age population (ages 15-65) has been declining since peaking in 2017, causing the potential growth rate to fall rapidly.

Director Kim stated, "OECD countries experiencing a decline in the working-age population due to low birth rates and aging have steadily increased female labor force participation through policy efforts. Reducing barriers to women's labor participation increases productivity and growth benefits, and as female economic activity rises due to productivity gains, it also leads to wage increases for men. Expanding the service sector is also a factor enabling women's economic participation," she explained.

Director Kim emphasized the importance of broadly expanding work-family balance systems and childcare policies to resolve discriminatory issues in the female labor market. She stressed the need for policies supporting work-life balance, improvements in social and cultural perceptions, and creating workplace environments conducive to work-life balance.

Kim said, "Adverse factors such as the US-China economic conflict, the Ukraine war, and the pandemic have worsened gender gap issues, and job polarization is intensifying due to the shrinking share of manufacturing employment and technological innovation. With labor supply capacity expected to be constrained by low birth rates and aging, risks may increase further, making the expansion of women's economic activity an urgent and critical task in this rapidly changing environment."

Senior Researcher Kim Jongsuk of the Women's Policy Research Institute diagnosed labor market gender gaps, citing the dual structure of the labor market as a cause. The labor market is divided into a primary labor market centered on public and large enterprises and a secondary labor market centered on small and medium enterprises, showing differences in tenure, parental leave, and use of work-family balance systems, highlighting the need to resolve this dual structure.

Researcher Kim analyzed that working hours systems for work-life balance and flexible work arrangements should be implemented in workplaces to allow women to design their career paths, and cooperation between labor and management as well as government support should be strengthened. The rate of career interruption among married women was 58% in 2013, 50% in 2016, and rose again to 52% in 2019, influenced by increased caregiving burdens due to COVID-19.

Additionally, gender-discriminatory harassment is also a barrier for women to continue their careers in the labor market. More than half (51.0%) of victims believed that experiences of sexual harassment and sexual violence could affect their willingness to be employed. Innovations are needed to address issues such as sexual harassment and gender discrimination in the workplace, labor-management cooperation on working hours systems, and strengthening employment welfare linkage for married women.

Efforts are also needed to transform the gender-segregated labor market into a gender-integrated labor market. Researcher Kim said, "Improvements in the female labor market must accompany the digital transformation process, and the segregated structure of women's major choices should be improved by providing full support for technical education fields and activating technical education for women entering the labor market."

This content was produced with the assistance of AI translation services.