Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Women workers could drive $1 trln rise in U.S. GDP - Moody's

Published 03/08/2022, 11:41 AM
Updated 03/08/2022, 11:46 AM
© Reuters. FILE PHOTO: A worker fills a cannoli at a bakery at Reading Terminal Market after the inflation rate hit a 40-year high in January, in Philadelphia, Pennsylvania, U.S. February 19, 2022.  REUTERS/Hannah Beier
MCO
-

By Federica Urso

(Reuters) - The U.S. economy could get a $1 trillion boost over the next 10 years if female labor market participation grew to the levels seen in other developed economies, a report on gender equality said on Tuesday.

Published on International Women's day by Moody's (NYSE:MCO), the report said women had been particularly hard hit by the COVID-19 pandemic as economic lockdowns disrupted schooling, child care and female-dominated industries like education and healthcare.

While that hit women globally, more left work in the United States and Canada than in the UK, Germany, Sweden and Australia, partly due to a lack of family-friendly policies such as guaranteed paid family leave and child-care subsidies, it said.

In the United States, the participation gap between prime-age women - women during their most productive years aged 25-54 - and men in the same age group stood at 11.4% in 2021 compared with a 6.6% gap in the UK and 4% in Sweden, the report added.

If new policies helped prime-age women join the labor market at the same rate as in other developed countries, Moody's said real U.S. gross domestic product would grow 4% above its baseline forecast over the next decade.

The report comes as policymakers and investors, particularly in Europe, increasingly take a deeper look at the degree to which companies consider gender and other forms of diversity when hiring and promoting staff.

Moody's, which provides credit ratings, said its data showed higher credit ratings not only correlated with greater board-level gender diversity, but also with a higher percentage of women in executive-level roles.

© Reuters. FILE PHOTO: A worker fills a cannoli at a bakery at Reading Terminal Market after the inflation rate hit a 40-year high in January, in Philadelphia, Pennsylvania, U.S. February 19, 2022.  REUTERS/Hannah Beier

"We consider the presence of women on boards – and the diversity of opinion they bring – as being supportive of good corporate governance, which is positive for credit quality," it said.

Amid the growing interest in diversity, Moody’s said it expected more debt issuers to link gender equity targets into their financing, helping issuance for green, social, sustainability and sustainability-linked (GSSS) bonds to hit a forecast $1.35 trillion globally in 2022.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.