Female workers could drive $1tn rise in US GDP_ Moody\`s says

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_ 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.

"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.