There are silent changes that do not grab headlines and that, nonetheless, could be key for the future. The rise in female employment in Europe is, in my opinion, one of them. Since the major effects of the pandemic on the labor market faded at the end of 2022, employment in the EU-27 has grown by 2.5%. It has done so thanks to the entry and greater labor-market participation of people born abroad, since the number of native-born workers has remained practically unchanged over the last three years. Although this aggregated snapshot hides important differences between countries —employment is rising among natives in Spain, France, Italy and Portugal, and falling among those in Germany, Austria or Belgium—, the truth is that without immigration the post-COVID economic recovery in Europe would have looked different.
However, foreign employment accounts for less than 25% of total employment in the Union’s main economies, so relying solely on immigration to navigate the effects of the demographic winter on the labor market is, at the very least, risky.
The cohorts of native population in the ages most active in the labor market are shrinking due to demographic aging and falling birth rates, and they will continue to do so in the coming years. If we do not improve the employability of groups with lower labor-force participation, it will be very difficult to cope with the impact of retirement exits of the older workers.
“If we do not improve the employability of the groups with lower labor-force participation, it will be very difficult to cope with the impact of retirement exits of the older workers”
Women constitute one of these groups, and the good news is that more and more of them are working [fig. 1]. Behind the stagnation of native employment observed in the EU-27 over the last three years, there is a concurrent decline in the number of working men alongside an increase in employed women. In the case of Spain, one of the most dynamic labor markets in the current expansion phase, female employment explains 67% of the employment growth among the native population.
The evolution of gender gaps tells the story of this improvement in women’s employability. Two decades ago, the gap between employment rates of native men and women (ages 15-64) hovered around fifteen percentage points on average across the Union; today it is half of that, similar to Spain. In countries such as Germany, France or Portugal, it is already below five points, with Italy the only large European economy still in double digits [fig. 2]. Generational change, educational gains, the expansion of the services sector, and advances in work–life balance have favored a more intense inclusion of women in the labor market. In fact, among those with higher education, the employment gap narrows substantially and could disappear in a few years if the growing participation of young women in higher education and their better academic performance continues.
“Generational change, educational gains, the expansion of the services sector and advances in work–life balance have favored the more intense integration of women into the labor market”
A simple and illustrative calculation highlights the potential of raising female employment rates. For Spain, for example, moving from a female native employment rate of 64% to the current male rate of 71% would imply, given the 2025 population, an increase in employment of around 850,000 people. But it would be naïve to think we will eliminate gender gaps overnight. There is still much to do because, moreover, it is not only about more women working; the quality of their jobs is just as important, if not more so.
Part-time work and irregular schedules remain far more common among women. In 2025, one in three employed women in the EU worked part-time; a share that for men did not reach 10%. Childcare explains much of this pattern: women with children are the ones who most resort to reduced hours, six times more than men [fig. 3], and despite recent advances they also devote more daily time to tasks related to domestic care — in Italy, women spend five hours per day, compared with two hours for men. Wage gaps and the lower presence of women in decision-making bodies and leadership roles are the other side of the coin and the reflection that there is still a path to travel.
“Societies that have achieved the practical elimination of the gender gap in native employment — Finland and Sweden are two paradigmatic cases — have done so with more education”
Societies that have achieved the practical elimination of the gender gap in native employment — Finland and Sweden are two paradigmatic cases — have done so with greater presence of women in fields linked to science, technology and engineering, more generous and flexible paternity and maternity leave, a broad provision of early childhood education and childcare services, and a greater shared responsibility in domestic work.
Europe cannot afford to waste talent when labor shortages are becoming a reality in many sectors. A break with the dichotomy that makes many women choose between fully pursuing their careers and taking on the bulk of caregiving responsibilities should be achieved once and for all. Reducing the barriers that still limit their participation in the labor market is a matter of economic efficiency, but also, and above all, a matter of equity.
