What’s going on:
The U.S. has fallen behind other countries with advanced economies when it comes to getting more women into the workforce, according to Axios. Countries like Japan and Australia have made significant strides in women’s labor force participation through policy changes and government-funded paid parental leave programs. In contrast, the U.S. lacks a universal paid parental leave policy and has more expensive childcare options compared to other countries.
Why it matters:
The United States is currently facing a labor shortage that could potentially get worse over the next decade due to an aging population, according to Axios.
As more women enter the workforce it will help to address the labor shortage and promote economic growth, reduces income inequality, and alleviates poverty, according to International Monetary Fund (IMF) in a 2020 report.
How it’ll impact the future:
To address labor shortages in the future, the U.S. may emulate the successes of other countries by making policy changes. The U.S. has the potential to create a more inclusive and robust workforce that might contribute to long-term economic growth and stability. The U.S. would have to implement improved policies around childcare, maternity leave, and tax codes.