Global Economic Activity Can Rise By $7 Trillion If Gender Gap Is Closed In Labor, Management: Moody's

A Moody's Analytics report stated that closing the gender gap in labor force participation and the gender gap in management in Organisation for Economic Co-operation and Development (OECD) countries can increase global economic activity by approximately 7%, or about $7 trillion, in today's dollars.

"Closing the gaps in large emerging economies, including India, would raise that potential further," the report said. CNBC first reported the story.

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The report explained that the rise in potential employment is calibrated as the percentage increase in the number of people in the workforce across the OECD if the labor force participation of women aged 25 to 64 were equivalent to the labor force participation of men aged 25 to 64 in 2021.

"This alone would raise potential output in the OECD by nearly 10% and global output by 6.2%," it said.

Gender Equality: Achieving gender equality, which lies at the heart of the U.N. Sustainable Development Goals that all U.N. member states agreed to achieve by 2030, remains a long way off, the report said.

At the current rate, it will take 132 years to reach full parity, the report pointed out citing the

World Economic Forum's Global Gender Gap Index, which measures gender parity across economic, educational, health and political dimensions.

Sectors expected to drive future productivity, including information and technology, have a much lower share of female leaders compared to other service sectors, according to the report.

"In all sectors, gender gaps widen as you move up the seniority ladder. Globally, only 23% of executive roles are held by women," it said.

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