Global Employment Trends for Women

Five Gender Gaps in the Labour MarketMoazam Mahmood

DirectorEconomic and Labour Market Analysis Employment Policy DepartmentILOEconomic Indicators used in Gender-related MeasuresSource: Klasen (2013)

LimitationsMeasurement of income: wage income often not well-estimated, non-wage income almost impossible to estimate especially in developing countriesEconomic participation: limited representation of multiple dimensions (unemployment, employment-to-population, labour force participation rates)

Not measuring the labour market correctly and sufficiently Note: Sources of IndicesGDI, GEM, GII UNDPRSW, SIGE DjikstraGGM, GEM3 Klasen/SchlerGEI Social WatchGGI World Economic Forum GSI (AGDI) UNECAGlobal Employment Trends for Women 2012The report examines the conditions of womens engagement in the labour market, by analysing the gender gaps for five indicators. UnemploymentEconomic indicator of registered distress in the labour marketEmployment-to-population ratioAssessment of employment growth rates and discouragement by genderLabour force participation Demographic and behavioral indicator, indicating increase or decrease of different age groups to the labour market - Demographic change shows impact on the labour market, for example through more women in younger age cohorts dropping out of the labour force for education.- Behavioral change affects the labour market, for example by society and culture choosing to send more of its working-age women into the labour market.

Vulnerability Sectoral and occupational segregationEconomic indicators of job qualityPositive gender gap indicates that women are disadvantaged. Closing the gap, convergence, means moving towards zero. Data and Time periodFor the economic indicators (unemployment, employment, vulnerability, and segregation) the gaps are examined over the last decade, 2002-2012, with the focus on the crisis. For the demographic and behavioral variable (labour force participation), gaps are examined over the past two decades (1992-2012) as it moves more slowly. Global findingsGender gap in unemployment Constant in the period 2002 to 2007, but increased as an impact of the crisis from 2008 to 2012Gender gap in employmentConvergence in the period 2002 to 2007, but reversals coinciding with the period of the crisis from 2008 to 2012 in many regionsGender gap in participationConvergence in the 90s but constant in the 2000, with increasing gaps in some regions like South and East Asia, Central and Eastern EuropeDemographic and behavioral change adding, even over-riding, to the impact of the crisisGender gap in vulnerability, occupational segregationSignificant gap for 2012Sectoral segregationWomen crowding into service sector, in both developed and developing countriesNote: 2012 are preliminary estimates and 2013 onwards are preliminary projections.Source: ILO, Trends econometric models, July 2012.0.7 pp Before crisis (2002-2007): gap in unemployment rates constant at 0.5 percentage points

Impact of crisis (2008-2012): increase of gap to 0.7 percentage points by 2012 (unemploying 13 million more women)

Projections show no reduction by 2017Figure: Global female and male unemployment, 2002-20171. Gender gap in unemployment51. Gender gap in unemployment: regional variationNote: 2012 are preliminary estimates.Source: ILO, Trends econometric models, July 2012.Regions with low gender gaps in unemployment rateRegions with high gender gaps in unemployment rateBefore Crisis (2002-2007)

Downward trend in the positive gap- Advanced economies- North Africa- South East Asia - Sub-Saharan Africa- South Asia

Increase in the positive gap- Middle East

Negative gender gap- Central and Eastern Europe - East Asia

Impact of Crisis (2008-2012)

Reversal of convergence and increase in positive gap- South Asia- South East Asia- Africa

Convergence towards zero (from negative gaps)- Advanced economies- Central and Southern Europe

Unaffected by the crisis- Latin America and the Caribbean- Middle East- East Asia

Figure: Gender gap in unemployment rate by region, 2000-2012Crisis: convergenceNegative gap in which areas6Male employment-to-population ratio (%)Female employment-to-population ratio (%)Gap (percentage points)Region200220072012p200220072012p200220072012pWORLD73.3 73.5 72.7 48.6 49.0 47.8 24.8 24.6 24.8 Developed Economies & European Union64.5 65.2 61.6 47.7 49.5 48.4 16.7 15.7 13.2 Central & South-Eastern Europe (non-EU) & CIS61.3 63.0 64.7 44.4 45.2 46.0 16.9 17.8 18.7 East Asia77.4 76.8 75.4 66.4 65.6 64.0 10.9 11.2 11.4 South-East Asia & the Pacific78.0 77.7 78.3 54.7 55.1 56.0 23.3 22.6 22.3 South Asia79.8 79.4 78.5 34.2 33.6 30.4 45.7 45.9 48.1 Latin America & the Caribbean74.3 75.4 74.8 43.9 47.2 48.8 30.3 28.2 26.0 Middle East66.3 67.1 68.2 13.7 15.1 15.3 52.6 52.0 52.8 North Africa66.2 68.1 68.3 16.6 19.7 19.7 49.5 48.4 48.5 Sub-Saharan Africa70.4 70.5 70.8 57.4 58.9 59.2 12.9 11.7 11.6 Table: Gender gap in employment-to-population ratios, 2002, 2007 and 2012Note: 2012 are preliminary estimates; the gap equals the difference between male and female ratios. Source: ILO, Trends econometric models, July 2012. Before crisis (2002-2007): slight decrease in global gender gap by 0.2 percentage pointsDecrease seen in - Developed Economies & EU - Middle East- South-East Asia & the Pacific - North Africa- Latin America and the Caribbean - Sub-Saharan Africa

Impact of crisis (2008-2012): increase in global gap by 0.2 percentage pointsIncrease seen in - Central & South-Eastern Europe (non-EU) and CIS - South Asia - East Asia - Middle East

Can be explained by employment growth rates by gender 2. Gender gap in employmentAverage over the period: 19922006200720082009201020112012*Average over the period: 201317*Employment growth, male (%)WORLD1.61.8 1.3 0.5 1.5 1.5 1.4 1.3Developed Economies and European Union0.61.3 0.3 -3.1 -0.4 0.5 0.3 0.5Central and South-Eastern Europe (non-EU) and CIS0.32.2 1.4 -1.5 1.8 1.8 1.0 0.3East Asia1.11.2 0.1 0.7 1.0 0.7 0.7 0.5South-East Asia and the Pacific2.11.9 1.8 1.7 2.3 2.0 1.5 1.4South Asia2.21.8 1.8 1.4 1.6 2.0 1.9 1.8Latin America and the Caribbean2.01.9 2.2 0.1 2.4 1.4 1.5 1.4Middle East3.54.0 2.4 4.2 3.8 3.0 2.6 2.2North Africa2.72.4 2.9 2.4 2.3 1.2 1.8 1.9Sub-Saharan Africa2.62.8 2.9 2.7 2.8 3.0 3.0 3.0Employment growth, female (%)WORLD1.81.6 0.9 0.4 1.0 1.4 1.3 1.2Developed Economies andEuropean Union1.11.6 1.1 -1.1 0.0 0.3 0.3 0.4Central and South-Eastern Europe (non-EU) and CIS0.32.1 0.8 -0.7 1.3 1.6 0.8 0.3East Asia1.21.2 -0.2 0.6 1.0 0.5 0.4 0.1South-East Asia and the Pacific1.93.1 2.6 1.7 2.0 2.1 1.6 1.5South Asia2.6-1.1 -1.1 -1.3 -1.9 2.5 2.3 2.1Latin America and the Caribbean3.73.3 2.8 1.4 3.4 2.0 2.3 2.1Middle East6.23.1 -1.9 3.9 5.0 4.5 4.0 3.6North Africa3.28.6 2.9 2.1 3.3 -0.3 2.7 3.1Sub-Saharan Africa3.32.8 3.0 2.8 2.7 2.8 2.8 2.9Table: Global and regional employment growth rates by sexNote: 2012 are preliminary estimates; 201317 are preliminary projections.Source: ILO, Trends econometric models, July 2012. Before crisis: Higher employment growth rate for women(smaller base) of 1.8%, compared to men at 1.6% Decreasing gender gap in employment-to-population ratio

Impact of crisis: Fall of global female employment growth by more than mens (especially South Asia) Lower female growth rate for each year of the crisis up to 2012, and projected to continue Increasing gender gap in employment-to-population ratio In advanced economies, womens growth rate was lower than mens over 2011-2012, and projected through 20172. Gender gap in employment3. Gender gap in Labour force participation

Figure: Distribution of female and male labour force participation rates, 1992 and 2012Note: n=number of countries; 2012 are preliminary projections.Source: ILO, EAPEP, 6th edition (July 2012 update).In the long term, the global gender gap in labour force participation shows convergence in the last two decades.Male labour force participation rate (%)Female labour force participation rate (%)Gap (percentage points)Region199220022012p199220022012p199220022012pWORLD80.2 78.1 77.1 52.4 52.1 51.1 27.9 26.1 26.0 Developed Economies & European Union71.8 69.4 67.5 50.3 51.7 52.8 21.5 17.7 14.7 Central & South-Eastern Europe (non-EU) & CIS74.1 68.0 70.7 52.6 49.1 50.2 21.5 18.9 20.5 East Asia84.2 81.4 79.4 71.4 69.1 66.4 12.8 12.4 13.0 South-East Asia & the Pacific82.6 82.8 81.8 58.4 58.4 58.8 24.2 24.4 23.1 South Asia84.8 83.3 81.3 36.1 35.8 31.8 48.6 47.5 49.5 Latin America & the Caribbean82.5 80.3 79.5 43.5 49.6 53.6 39.0 30.7 25.9 Middle East77.6 73.8 74.3 13.3 17.2 18.7 64.3 56.6 55.5 North Africa74.4 74.1 74.3 21.8 21.2 24.4 52.6 52.9 49.9 Sub-Saharan Africa79.0 76.5 76.3 60.3 63.5 64.6 18.6 13.0 11.8 Table: Gender gap in labour force participation rate, by region, 2002, 2007 and 2012Note: 2012 are preliminary estimates; the gap equals the difference between male and female ratios. Source: ILO, Trends econometric models, July 2012.However, all the convergence progress was made in the first decade, 1990s. 1992 - 2002: Decrease in gap from 28% to 26% because male rates fell by more than womens rates Gap decreasing or constant in all regions

2002 - 2012: Constant gender gap because male and female rates fell equally, and regional variationDecrease seen in - Developed economies & EU- South-East Asia and the Pacific- Latin America and the Caribbean- Middle East- North Africa- Sub-Saharan Africa 3. Gender gap in Labour force participationIncrease(reversal) seen in- South Asia: 2 percentage points- Central & South-Eastern Europe (non-EU) and CIS: 0.6 percentage points- East Asia: 0.6 percentage pointsAccount for the global halt in convergence in the participation gapsAge cohort decompositionIn the 1990s, female labour force participation rate has been decreasing in the last two decades for youth, and increasing for adultsIn the 2000s, Young female LFPR decreased in all regions Adult female LFPR increased in all regions except East Asia, and South Asia

Demographic changes and behavioral factors worked to reinforce the negative impact of the crisis.Reversal of convergence in regions more hit by the crisis, such as the advanced economies and Central and Eastern Europe, as well as regions more hit by demographic and behavioral factors, such as South Asia and East Asia

Further complexity:Increase in LFPR gaps can be due to a desirable: young girls leaving the labour market for education. Decrease in LFPR gaps can be due to an undesirable: pervasive and persistent poverty, not allowing an option of dropping out of work. 3. Gender gap in Labour force participation11Persistent differentials in the quality of employment: vulnerability and segregation4. Gender Difference in vulnerabilityFigure: Share of status in total employment by region and sex, 2012Note: 2012 are preliminary projections. The shares do not add up to 100 because the category for employers is not presented in the figure for the sake of a clear presentation. Source: ILO, Trends econometric models, July 2012. Big regional differences in vulnerable employment gap

Gap > 15 percentage points- North Africa- Middle East- Sub-Saharan Africa

Gap < 10 percentage points- East Asia- South Asia- South-East Asia and the Pacific

Share of women in vulnerable employment lower than mens- Developed Economies & EU- Central & South-Eastern Europe and CIS

Decomposition of vulnerable employment

- Share of own-account workers higher for men in all regions

- Share of contributing family workers higher for women in all regions, leading to a higher dependency of women

In 2012, vulnerability gaps are still pervasive, with a global gender gap at 2 percentage points. 5. Gender segregation: SectoralAgricultureIndustryServices Both sexes199220022012p199220022012p199220022012p WORLD44.239.734.221.120.222.134.740.043.7 Developed Economies & European Union6.65.03.830.526.321.962.968.774.3 Central & South-Eastern Europe (non-EU) & CIS25.423.319.626.625.026.648.051.753.8 East Asia55.847.635.123.122.428.421.130.136.5 South-East Asia & the Pacific58.448.243.113.717.318.527.934.538.4 South Asia62.157.050.915.417.021.022.526.128.0 Latin America & the Caribbean24.719.616.022.321.521.853.058.862.2 Middle East23.021.916.724.124.625.652.953.557.7 North Africa35.930.430.219.019.021.545.150.648.3 Sub-Saharan Africa67.265.762.28.38.08.624.526.329.3AgricultureIndustryServices Males199220022012p199220022012p199220022012p WORLD41.237.532.824.623.925.934.238.641.3 Developed Economies & European Union7.25.74.539.035.631.353.858.764.2 Central & South-Eastern Europe (non-EU) & CIS26.623.519.032.230.733.341.245.847.7 East Asia47.741.031.826.725.931.425.633.136.8 South-East Asia & the Pacific56.947.442.315.319.521.027.833.136.7 South Asia56.351.044.316.918.523.126.830.532.6 Latin America & the Caribbean29.124.420.726.626.027.744.349.551.5 Middle East21.219.314.025.926.828.152.953.957.9 North Africa34.631.429.821.020.624.544.348.045.8 Sub-Saharan Africa64.465.261.810.49.810.525.225.127.7AgricultureIndustryServices Females199220022012p199220022012p199220022012p WORLD48.843.236.415.714.716.235.442.147.4 Developed Economies & European Union5.94.23.019.014.510.675.081.486.4 Central & South-Eastern Europe (non-EU) & CIS23.923.020.319.818.218.356.358.961.4 East Asia65.655.539.018.718.024.815.726.536.2 South-East Asia & the Pacific60.549.444.211.614.315.127.936.340.7 South Asia77.071.968.911.813.115.411.315.015.8 Latin America & the Caribbean16.211.99.014.214.213.369.673.977.7 Middle East36.235.230.311.113.313.052.851.456.7 North Africa40.626.431.811.412.711.248.060.957.0 Sub-Saharan Africa70.866.362.55.66.06.323.627.731.2Table: Employment shares by sector and sex, world and regions (%)Source: ILO, Trends econometric models, July 2012.2012 snapshot 1/3 of women in agriculture, 1/2 in service, and 1/6 in industry

Trends in the last two decades

- Industrial share of women has barely changed: women moving out of agriculture into services

- In advanced economies, womens employment in industry halved, crowding 85% of them into services.

- In most developing economies, women crowded out of agriculture into services, with the exception of East Asia where womens employment in industry went up to a quarter.Sectoral segregation increased over time, with women moving into service sectors, in both developed and developing countries. Annex TA8145. Gender segregation: OccupationalFigure: Differences in average shares of major occupational groups by sex in selected developed and developing economies, latest year available after 2000Note: The calculation of malefemale differentials by occupation is as follows, using major group X: share of persons employed in major group X in total employment, males minus share of persons employed in major group X in total employment, females. Hence, a positive differential implies that men tend to be concentrated more in the specific occupation in comparison to women. The sample of developed economies comprises 25 countries, and the sample of developing economies 24 countries.Source: KILM, 7th edition, table 5a.Occupational segregation also appeared quite pervasive over time.

Men over-represented in craft and related trades workers, plant/machine operators, and managerial / legislative occupations. Women concentrated in mid-skills occupations: clerks and service workers, and shop/market sales workers.15