The Secret to a Strong Economy is Women

This is a critical moment for America and its economy. There are vehement disagreements on nearly every issue you can think of. But there’s one thing on which we all agree: we want a strong economy. This is the cornerstone of US national security, global standing, and the wellbeing of our families.

The best way to have a strong economy is to unlock the full potential of women in our workforce. To understand the impact of losing female workforce participation in America, take a look at Japan. Low birth rates, immigration rates close to zero, and the underutilisation of women’s abilities were major drivers of three decades of economic stagnation. Between 2000 and 2022, Japan’s labour productivity dropped from around 70 per cent of America’s to just 58 per cent.

In 2013, Prime Minister Shinzo Abe launched an economic plan, “womenomics”, aimed at reversing this trend by getting more female participation in the labour market. But to date, womenomics has only partly succeeded. While more Japanese women are working, nearly half are in part-time or temporary jobs. Japan’s gender pay gap stands at a staggering 32 per cent.

The US faces similar forces that could lead to stagnation. Population growth is projected to slow to 0.25 per cent in 2038. Immigration is expected to decrease in the coming years. And women remain under-represented in the workforce at every level, in every age cohort and in almost every industry.

Workforce participation among American women is 57 per cent, compared to 68 per cent for men. That’s an 11-point difference, despite women making up half of the population. The gap exists at every age. Worse, for workers in their most productive years (ages 25-54) women’s participation in the US has stagnated and is lower than Japan’s.

The leadership gap in the US is even more pronounced. Women earn 59 per cent of college degrees yet they make up just 11 per cent of Fortune 500 CEOs. This is not due to lack of ambition; women are as interested in advancing and as likely to ask for a promotion as men. To accept the disparity in leadership, you’d have to believe that male college graduates are nearly twelve times more talented than their female counterparts. Clearly, that’s not the case.

If we close these persistent gender gaps in workforce participation and leadership, our economy — and our country — will be stronger and more competitive.

If women’s workforce participation in the US reaches the highest levels seen in other G7 countries, there would be around 7mn more women in our workforce and our economy could grow an additional 4.2 per cent. This is a significant boost given the US economy has grown less than 2 per cent per year, on average, since 2015.

Multiple studies show harnessing women’s talents also directly benefits companies. Businesses with women in at least 15 per cent of senior management report 50 per cent higher profits than those with women in fewer than 10 per cent of leadership roles, according to a 2016 management study by Credit Suisse.

This isn’t about having fewer men in the workforce; the more capable people we have, the better. In my time at the US Treasury Department and across decades working in Silicon Valley, I’ve seen first-hand that when you tap the talents of the full population, you draw from the very best available. It should not be surprising that this drives more economic growth and better company performance.

Unfortunately, we live in a culture that doesn’t always encourage women to lead or welcome their contributions. Systemic barriers still exist — and this is especially true for women of colour.

This is not only holding back those individuals, it’s holding back our entire economy. This was true in 2013 when I wrote Lean In, and unfortunately it is still true today.

Now more than ever, companies need to remain committed to advancing women. It’s not about special treatment — it’s about levelling the playing field. This means ensuring all women have access to mentorship, sponsorship, and the networks that men have long had. It means tackling pervasive biases that get in the way of hiring and promoting the best people. And it means companies need to believe in women’s potential — and give them the same opportunities to prove themselves that we know men are getting.

This is not just a matter of fairness; it’s an economic imperative. If America is to remain competitive, secure, and sustain its position as an economic superpower, we need to unleash women’s full potential.