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As women advance in Asia's labor force, Vietnam is a standout
Rosie the Riveter's 21st century legacy is alive in Vietnam.
The fictional Rosie, depicted on posters and magazine covers, became the symbol of women who joined the US factory workforce during World War II, jump-starting the rise in female labor force participation in postwar America.
The Vietnam War had a similar effect in that nation, so that today the daughters and granddaughters of Vietnam's Rosies have made their country among the world's leaders when it comes to employment for women. Almost three-quarters of Vietnam's female working-age population has been in the labor force for at least two decades, one of the highest and most persistent rates in Asia and the world.
Why does this matter? Higher female labor force participation-the share of working-age women with a job or actively looking for employment-raises the economy's growth potential by increasing the pool of workers available for productive purposes. This can lean against the negative economic effects of aging, which shrinks the workforce and lowers growth.
Asia, the most populous continent, with 60 percent of the world's people, is aging rapidly. Bringing more women into the workforce is therefore crucial to reinforce Asia's economic dynamism and ensure its future prosperity, while also empowering the economic autonomy and aspirations of its female population. A 2018 report by the McKinsey Global Institute, "The Power of Parity: Advancing Women's Equality in Asia Pacific," estimates that equality for women in the region could increase collective annual GDP by 12 percent, or $4.5 trillion, by 2025.
Several researchers have also demonstrated that a larger presence of women in the workforce and the elevation of women to prominent positions can help foster income equality, diversify the economy, and boost the profitability and efficiency of businesses.
Trending up
Female labor force participation is trending up across Asia, with many other countries catching up to Vietnam. On average, female participation rates in Asia have increased by about 6 percentage points since 1990 (see Chart 1) and lie not far behind the levels seen in advanced Western economies (IMF 2018). Our forthcoming paper looks at the evolution of female labor force participation in Asia.
The improving overall picture reflects some convergence in female labor force...