Underutilized productivity of northeastern women – 03/11/2024 – Shireen Mahdi

According to 2023 data from IBGE, in the Northeast region the labor force participation rate fell to 54%; in contrast, in the Southeast region the rate is 65% and, in Brazil, as a whole, 62%. Surprisingly, this happens despite the increase in the working-age population in the Northeast region. The underrepresentation of Northeastern women in the job market plays an important role in this story. Men’s participation in the region’s labor force is 66%, while women’s participation is just 44%.

Are women and girls in the Northeast less qualified or capable than their male counterparts to get a job? On the contrary: girls in the region complete formal education with better learning results, which allows them to enter the job market with greater capabilities than men. However, these accumulated skills are little absorbed by the job market. The Brazilian Human Capital Report, published by the World Bank, estimates that, on average, 46% of Brazilian women’s productive potential (their accumulated human capital) was not absorbed by the labor market in 2019. In the Northeast, this number rises to 56 %. In other words, by leaving these women unemployed, Brazil and the Northeast are throwing a lot of money away.

This is a missed opportunity for a region characterized by one of the youngest demographic structures in the country. The Northeast is able to benefit from this demographic dividend if it can offer good results in the job market to all its young people. Furthermore, the nine states in the region, which together were home to 27% of the Brazilian population in 2022, represented only 14% of the national GDP — and almost 50% of Brazilians in chronic poverty lived in the Northeast (2021 data). Therefore, it is difficult to imagine how the Northeast could catch up with the country’s richest regions and address their profound inequality challenges without mobilizing the talent of its women.

There are many reasons why women face difficulties entering the job market. Household responsibilities and childcare are major obstacles. The insufficient number of public or affordable daycare centers and preschools amplifies the effects of these responsibilities, especially in the first years after childbirth. Gender biases, which discourage women from participating in the labor market, also pose significant challenges.

For example, almost half of Brazilians believe that being a housewife and having a paid job are equally rewarding activities; more than a third of women consider it a problem to earn more than their husbands; and a fifth of women think men make better executives or political leaders than women. Other obstacles are the pay gap between men and women and low income from informal work, which increase the opportunity costs of female work. Furthermore, another important challenge to be faced in the region’s cities is crime, which also contributes to low female participation by increasing their concerns about security, limiting their mobility and generating psychological suffering.

All of this highlights the urgency of a coordinated public policy agenda to get more women into the job market. It is essential that measures are implemented to help women balance their personal and professional lives. To create a more supportive environment for women, it is necessary to increase the provision of affordable childcare services, promote work flexibility and guarantee paid parental leave and maternity and paternity benefits.

Policies and programs that support women’s entrepreneurship, such as access to financial resources and training, can help empower women, especially the many who work in the informal sector. Equal pay policies between men and women and initiatives to combat stereotypes and discrimination are equally important.

This includes encouraging companies to promote greater gender diversity, including in leadership positions and boards of directors, to serve as a powerful example for girls across the country. Finally, combating crime and improving public safety on the streets, workplaces and public transport are crucial measures for creating a supportive environment where women feel safe participating in the workforce.

The Northeast, a region with a lot of potential and many challenges, seems to ignore the hidden wealth of its women’s potential. Let’s transform these women and girls into an engine of future growth for the region.

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