Unveiling the Barriers to Women’s Workforce Participation

According to the National Occupation and Employment Survey (ENOE), women in Mexico earn MX$81 (US$4) for every MX$100 men earn. México ¿cómo vamos? (MCV) reports that this gap stems largely from unpaid work responsibilities, pushing women into informal jobs and limiting their access to leadership roles. The lack of a universal care system deepens this inequality, widening the pay gap over time.

As MCV reports, women in Mexico face a disproportionate burden of unpaid care work, as they spend an average of 42 hours per week on household and caregiving tasks, 121% more than men, while also working fewer paid hours, averaging 35 hours per week or 20% less than men. According to MCV, this imbalance affects job retention and access to leadership roles, as many women face rigid workplace structures and environments that do not accommodate their dual responsibilities.

Maternity, paternity, and parental leave regulations play a key role in fostering gender and social co-responsibility in the labor market. These policies aim to protect both those who require care and those who provide it while also contributing to economic activity. Improving care-related policies is necessary to reduce gender disparities and transition toward a care-based society, reports MBN. 

Labor force participation also remains a challenge, states MCV. The female participation rate in the workforce in Mexico is 46.3%, significantly lower than the 67% average across OECD countries and below regional peers such as Colombia, Brazil, and Chile, which exceed 50%. Over the past decade, Mexico’s rate has increased by 3.2 percentage points, placing the country among the lowest in the OECD in terms of integration.

Inflexible employment conditions lead women to a 41% income penalty compared to those in formal jobs, says Paola Vázquez, Researcher, IMCO. As MCV reports, informal jobs place women in positions of greater risk and vulnerability to unfair dismissal, without access to social security in case of illness, and without access to a childcare system, thus, elongating the pay gap cycle. 

“Gender-sensitive public policies are necessary to address structural barriers”, states Sandra Martínez, Analyst, MCV. According to calculations from the Care Policy Investment Simulator, developed by ILO and ECLAC, investment in care in the region could create 32 million jobs by 2035. Of these, 11 million would be generated in universal early childhood care services, and 21 million in long-term care. A rise in women's employment is expected to help close gender gaps in the labor market, states report. “Public policies with a gender perspective have not been developed to recognize that time is a limiting factor for women,” adds Martínez. 

IMCO estimates that accelerating women participation in the workforce could add MX$630 billion to Mexico’s GDP over the next decade. Moreover, companies with greater gender equity report higher levels of employee satisfaction, reduced turnover, and improved productivity. A report by Entrepreneur highlighted that 73% of companies implementing gender equality practices saw increased profitability and productivity, reports Daniela García, Vice President of People, Performance and Culture, Element Fleet Management Mexico, for MBN. 

Beyond economic factors, security concerns also play a role in limiting women’s professional opportunities. Higher levels of perceived insecurity influence decisions about continuing education, starting a business, or pursuing formal employment, further restricting women’s economic participation.

Mexico ranks 119th out of 146 economies in the World Economic Forum’s 2024 Global Gender Gap Index in terms of wage disparity between men and women. Reports agree that addressing these inequalities will require targeted policies, including a well-funded care infrastructure and labor market reforms that promote greater inclusion of women in formal employment and leadership roles.