The Positive Impact Of Women Empowerment on Economic Growth

Women empowerment in decent employment significantly contributes to a nation's economic growth. Moreover, an increase in women's participation in the workforce has been observed in recent years. Data from the Central Statistics Agency (BPS) indicates a gradual rise in women's labor force participation https://www.bps.go.id/indicator/6/1170/1/persentase-tenaga-kerja-formal-menurut-jenis-kelamin.html. This reflects changes in social attitudes and greater opportunities for women to contribute to the nation's economy. With more women entering the workforce, Indonesia's labor force potential is maximized, which, in turn, enhances overall productivity.

Below are some of the positive impacts of women's empowerment on economic growth:

• Increased Workforce Participation: Empowering women in decent employment opens opportunities for them to join the labor market. With the rising participation of women in employment, a nation's workforce potential becomes maximized, enhancing overall productivity.

A study by the McKinsey Global Institute found that if women have equal employment opportunities to men, the potential for global economic growth could increase by up to $28 trillion by 2025. (https://www.mckinsey.com/mgi/overview/in-the-news/the-economic-benefits-of-gender-parity)

• Enhanced Family Education and Health: Working women typically have greater access to resources, including education and healthcare. Data from the Ministry of Education and Culture shows that working women are more likely to prioritize their children's education. This can result in a better-educated and higher-quality generation, which, in turn, contributes to increased productivity and economic competitiveness in the future.
• Economic Diversification: Empowering women across various economic sectors helps diversify a nation's economy, reducing dependence on specific sectors and making the economy more stable. For instance, in various countries, women have played a primary role in the agricultural sector. Increasing women's access to agricultural resources and training can enhance food production and reduce vulnerability to price fluctuations and uncertain weather conditions.
• Consumption and Investment: Women tend to be more prudent in managing finances and are more likely to reinvest their income into their families and communities. Data from the BPS demonstrates that working women make a significant financial contribution to their families. This additional income is often directed toward the purchase of goods and services, supporting growth in other economic sectors, such as retail and consumer services.
• Innovation and Creativity: By providing women with greater access to education and training, we can tap into untapped potential for innovation and creativity. Women can offer different perspectives in decision-making and solutions to economic challenges. Initiatives such as Women in Tech and Women in Business have positioned women as drivers.
• Reduced Social Inequalities: Empowering women in decent employment can reduce social and gender inequalities. Policies supporting gender equality in the workplace can help reduce wage gaps and disparities in opportunities, creating a more stable and harmonious society. This is crucial for building an inclusive and sustainable business environment. Numerous studies have shown that countries with higher gender equality levels have higher Human Development Index (HDI) scores and lower poverty rates.

Empowering women in decent employment represents a long-term investment with significant economic benefits. By granting women equal opportunities in the workforce, a country can maximize its human resources potential and create a stronger, more diverse, and sustainable economy. With statistical data, case studies, and various women empowerment initiatives in Indonesia, it becomes clear that women's empowerment in decent employment has and will continue to contribute to sustainable economic growth in the country. Efforts to enhance access and gender equality in the workplace will be a crucial factor in propelling Indonesia toward a more prosperous and inclusive future.