The World Bank has highlighted the urgent need for countries in the Middle East, North Africa, Afghanistan, and Pakistan (MENAAP) region to significantly expand women’s participation in the labor force, warning that failure to do so could limit long-term economic growth and strain future public finances.
In a recent analysis, World Bank economists noted that the region is undergoing major demographic change, with its working-age population expected to grow by around 220 million over the next 25 years. Despite this potential demographic advantage, economies in the region have not generated enough jobs to fully benefit from this shift.
At the same time, rising dependency ratios are expected to place increasing pressure on pension systems and government budgets, making stronger economic participation essential for sustaining growth.
A central finding of the report is that women’s labor force participation in the region remains among the lowest globally, with only about one in five working-age women actively participating in the job market. This gap is seen as a major untapped source of economic growth.
The World Bank attributes low participation to a combination of factors, including restrictive social norms, unequal legal frameworks, limited access to safe transportation, and insufficient childcare support. Employers’ hiring practices and the structure of private sector job creation also contribute to persistent gender disparities in employment.
The report emphasizes that these constraints reinforce one another, creating a cycle of low participation and limited economic opportunity. Many women are either excluded from formal employment or concentrated in public sector roles, while private sector opportunities remain limited or inaccessible.
According to the analysis, partial reforms are unlikely to be sufficient. Instead, comprehensive policy changes are needed to address legal barriers, improve workplace conditions, expand childcare services, and strengthen private sector job creation.
The World Bank estimates that closing gender gaps in labor force participation could increase GDP per capita by 20 to 30 percent in some countries, including Egypt, Jordan, and Pakistan, representing one of the largest potential economic gains in the world.
The report concludes that expanding women’s employment is essential not only for gender equality but also for long-term economic resilience, especially as the region faces rapid demographic shifts and growing fiscal pressures.
