Women’s Workforce Gaps Persist Despite Legal Gains: World Bank

A new World Bank report finds that fewer than 5% of women live under near-full legal equality, and no country guarantees all rights needed for full economic participation. While economies score 67 out of 100 on gender-equal laws, enforcement drops to 53 and institutional support to 47. Mexico scores 87.5 in the “Work” indicator, yet labor data show a 27.3-point gender participation gap. Barriers including weak enforcement, limited childcare, and restricted access to finance continue to constrain women’s workforce inclusion, limiting productivity and long-term economic growth despite recent reforms.

A new World Bank report finds that fewer than 5% of women live in economies that provide close to full legal equality, and no country has secured all the legal rights required for women’s full economic participation. These results underscore persistent structural barriers that continue to limit growth and workforce inclusion.

The “Women, Business, and the Law 2026” report evaluates not only the legal frameworks governing women’s economic participation across economies but, for the first time, the extent to which those laws are enforced and supported by adequate institutional systems. The findings point to a significant gap between legislation and implementation.

“Women, Business, and the Law  2026 offers a comprehensive view of the factors shaping women’s economic decisions throughout their working lives,” says the World Bank. 

On average, economies score 67 out of 100 on the index measuring laws that support women’s economic equality. However, the average score drops to 53 when enforcement of those laws is assessed. When evaluating the adequacy of systems required to implement rights, including courts and regulatory bodies, the score falls further to 47.

According to data from the report, Mexico scores 87.50 out of 100 in the “Work” indicator, which assesses legal frameworks affecting women’s participation in the labor market. The category evaluates issues such as restrictions on employment, protections against discrimination and sexual harassment, and women’s ability to work in the same roles as men. 

While the score suggests that much of the legal architecture supporting women’s access to work is in place, labor market data from the National Institute of Statistics and Geography (INEGI) indicates that structural gaps persist. In 2024, 51.8% of women aged 15 and older participated in the labor force, compared to 79.2% of men, resulting in a gender gap of 27.3 percentage points. Although this represents an improvement from 2016, when the gap stood at 30.8 points, disparities remain pronounced. Parenthood continues to shape participation rates: among women aged 25 to 44, 63.3% of those with children were economically active in 2024, compared to 81.3% of those without children, a gap of 18 percentage points that has remained virtually unchanged since 2016.

The report highlights that even where gender-equal laws exist, women often lack effective institutional support to exercise their rights. Courts, administrative bodies and regulatory systems are frequently underresourced or fragmented, limiting the practical impact of legal reforms.

The economic implications are substantial. With global growth slowing and demographic pressures intensifying, the exclusion of women from the workforce represents a constraint on productivity and resilience. Research consistently shows that higher female labor force participation correlates with improved firm performance, stronger labor markets, and greater economic dynamism. In regions such as South Asia, expanding women’s economic participation could represent a key driver of growth.

Yet some of the regions with the greatest demographic expansion, including the Middle East and North Africa, South Asia, and Sub-Saharan Africa, continue to maintain restrictive legal barriers. Without reforms, millions of young women risk remaining outside the labor force at a time when their economies face mounting workforce demands.

The report identifies several recurring obstacles. Safety remains a foundational concern, as weak or poorly enforced protections against violence restrict women’s ability to work, travel, and participate in public life. Childcare is another structural barrier. In low-income economies, only 1% of essential childcare support frameworks are in place. Limited access to reliable and affordable childcare forces many women to reduce work hours or exit the labor market.

Entrepreneurship presents additional challenges. While the legal ability to start a business is nearly universal, only about half of economies guarantee equal access to finance. Without access to credit and capital, women-led firms face constraints in scaling operations, investing and contributing to economic development.

Despite these gaps, the report notes measurable progress. Between October 2023 and October 2025, 68 economies enacted 113 reforms aimed at expanding women’s economic opportunities. Measures included strengthening protections against violence, expanding parental leave, raising childcare standards, guaranteeing equal pay and removing employment restrictions. Economies such as Egypt, Jordan, the Kyrgyz Republic, Madagascar, Oman, and Somalia implemented reforms to dismantle discriminatory provisions.

However, progress remains uneven. The report calls on policymakers to complete pending legal reforms, eliminate discriminatory laws and prioritize enforcement. It also stresses the need to strengthen justice systems, regulatory institutions, and childcare services to ensure that legal rights translate into practical opportunities.

The findings frame gender equality not solely as a social objective but as a structural economic priority. With workforce participation central to long-term growth, no economy can afford to leave half its potential untapped, reads the report.