Expanding Care Systems Can Boost GDP: ILO, UN

In observance of the International Day of Care and Support, Latin American governments and businesses are urged to expand care systems, as unpaid care work accounts for up to 26.8% of regional GDP and falls mostly on women, affecting workforce participation and retention. The ILO and UN highlight that care policies support both economic growth and gender equality.

“When care falls disproportionately on women, they are forced to choose between professional development and family,” said Alanna Armitage, Representative in Mexico, UNFPA, as cited by MBN. “This forced choice hinders the economy and threatens long-term sustainability.”

Across Latin America, women spend 6.3 to 29.5 more hours per week on unpaid domestic and care work than men, with total workloads, including paid employment, ranging 2.4 to 20.8 additional hours weekly, states ILO. Women in lower-income households dedicate at least one-third more hours to unpaid care than those in wealthier households. Women represent 76% of the care sector workforce, yet their formal labor participation is 52.1% compared to 74.3% for men, with rural women facing informal employment rates of 78.1%.

In Mexico, women earn MX$81 (US$4) for every MX$100 men earn, largely due to unpaid care responsibilities that push them into informal work and restrict access to leadership roles. Women spend an average of 42 hours per week on household and caregiving tasks, 121% more than men, while working 35 paid hours weekly, 20% less than men. Female workforce participation is 46.3%, below the OECD average of 67% and regional peers including Colombia, Brazil, and Chile. Inflexible employment conditions contribute to a 41% income penalty for women in informal roles, reducing social protections and access to childcare systems.

As reported by Laboratoria and McKinsey, in the technology sector, women occupy 26% of entry-level roles, 28% of intermediate positions, and 25% of leadership positions. Promotion rates favor men: women receive 24% of entry-level promotions, 20% at intermediate levels, and 17% at the executive level. Women earn 24% less than men on average, with 31% of companies reporting higher pay gaps in leadership roles. Family responsibilities are the second-leading reason women in executive positions consider leaving, cited by 38%.

Yet, the ILO, UN, and ECLAC estimate that regional investment in the care sector could generate 32 million jobs by 2035, including 11 million in early childhood care and 21 million in long-term care. In Colombia, Honduras, and Bolivia, the ILO has implemented the Care.Coop model, which emphasizes community-based care cooperatives. In Colombia, eight out of 10 organizations practice collective decision-making, and ASOREDIPAR counts 1,350 members, 97% of whom are women. In Honduras, Coop Cuidados was launched as the country’s first cooperative for paid domestic workers. In Bolivia, 181 care centers operate across the country, including 88 publicly managed centers, 53 of which offer fixed-term contracts, while faith-based centers continue to rely heavily on unpaid volunteers.

Investment in care is projected to increase women’s labor participation, adding MX$630 billion to Mexico’s GDP over the next decade. Companies with gender-equity policies report higher employee satisfaction, lower turnover, and improved productivity, with 73% noting increased profitability.

Experts agree that achieving gender equity requires expanding maternity, paternity, and parental leave, integrating flexible work options, formalizing care services, and implementing policies that reduce structural inequalities. Aligning national care frameworks with international standards can transform care from an invisible burden into a strategic economic pillar.