PressNewsCompanyPoint of view: Without more women in the workforce, overall wealth could begin to tumble as early as this year.

Without more women in the workforce, overall wealth could begin to tumble as early as this year.

Service & Contacts

Allianz Group Communications
Koeniginstr. 28
80802 Munich
Germany

Contact overview

Receive the latest Allianz news.

Newsletter

Follow Allianz in the social networks:

Facebook
Twitter
Google+
LinkedIn

  • Contact

  • Newsletter

  • Social Media

International Women’s Day offers a good opportunity to look at the potential a rising labor force participation rate among women could have on global wealth.

 

Allianz SE
Munich, Mar 08, 2016

Allianz-Source: Allianz International Pensions, own calculations

Source: Allianz International Pensions, own calculations

Download graphic

Even today, there are still fewer women in the workforce than men. According to the OECD, the global average amount of time women spend doing unpaid work such as household chores, and caring for children and the elderly, is 4.5 hours a day. The amount is less than half that among men. Calculations made by the Allianz International Pensions think tank show that one way the economic consequences of an aging population could be mitigated is if more women were to enter the workforce.
 
By 2035, aging populations in Germany, the UK, the US and Japan will cause the number of people in the workforce to plummet by up to 20 percent. Based on the experts’ calculations, the total wealth in these countries could also drop by up to 15 percent in terms of pro capita income.1
 
For instance, if the labor force participation rate of women in Germany were to rise from 69.5 percent to the current rate of men, 77.6 percent, the working population would grow by two million by 2022. Gross domestic product per capita would continue to drop over the long term, but this would not start happening until 2024. And even in 2060, the labor force would still be at nearly 1.5 million people more than today. If more women do not take up gainful employment, the demographic change could begin having a negative impact on the income per capita as early as this year.
 
“It is completely realistic to expect the future labor force participation rate among women will be as high as it is for men today,” says Brigitte Miksa, head of International Pensions. “Women, however, will have to be made aware of how important financial independence is today; also because of the high divorce rates.” In addition, companies will need to do more to help women balance their jobs and families, she said.
 
More than 80 percent of women in their mid-forties are working today. The large disparity between the participation rates of men and women as noted above is that employment among older women is very low. “I expect most women in their mid-forties today will – unlike their mothers and grandmothers – continue working until retirement. Not only because they grew up with a different understanding of gender roles, but also because the social framework forces them to do so; for example the danger of old-age poverty," says Miksa.
 

 

1 Based on the assumption that both per-capita productivity rates and employment levels remain constant.

  Forward Looking Statement disclaimer

As with all content published on this site, these statements are subject to our Forward Looking Statement disclaimer:

 

  Press contact

Petra Brandes
Allianz SE
Phone: +49.89.3800-18797
Send email

  More at allianz.com

New partner for identification platform Verimi

Allianz-New partner for identification platform Verimi
Dec 11, 2017 | Allianz SE

The new European identification, registration and data platform Verimi welcomes further support: Giesecke+Devrient (G+D), world market leader for the validation of payment transactions, identification, connectivity and data becomes a new shareholder. 

More...

Millennials are optimistic pessimists

Allianz-Beware of generation generalizations
Dec 11, 2017 | Allianz SE

For people decidedly glum about the fortunes of their generation, millennials remain incredibly upbeat about their personal prospects, finds an Allianz study on millennials and their work attitudes and expectations

More...

Euler Hermes Rating launches new SME & MidCap Rating Service in France

Allianz-Euler Hermes Rating Launches New SME & MidCap Rating Service in France
Dec 06, 2017 | Allianz SE

Euler Hermes, the world’s leading trade credit insurer, today announced the French launch of TRIBRating, a new rating service specifically designed for SMEs and MidCaps, offered by Euler Hermes Rating. 

More...
More...