Closing gender gap could add $600M to Island GDP, says report

If P.E.I. decreases gender inequality and increases the labour participation of women as well as place women in higher productivity sectors as much as $600 million over the next 10 years could be added to the Island's GDP, according to a report released this week.

"This is all about what can we do in addition to predicted growth for P.E.I.'s GDP. It won't take away, but we're losing an opportunity to actually create more benefit and opportunity,"said Tiffany Vogel, an associate partner with the Toronto-based McKinsey & Company.

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The report published Wednesday by the McKinsey Global Institute also points out that closing the gender gap in Canada could contribute an additional $150 billion to GDP over that time.

Vogel said that $600 million contribution to the province's GDP would amount to a nine-per-cent growth rate, which is higher than Canada's six-per-cent growth rate.

Vogel said that P.E.I. needs to look at how women are working in terms of part-time versus full-time work but also make an effort to move women into higher productivity sectors, especially agriculture, fishing and construction.

She noted that P.E.I.'s labour force participation for women is expected to decline from 62 per cent today to 60 per cent in 2026. But with nine-per-cent growth possible, that poses an opportunity for the Island.

"If P.E.I. can not only close that gap [and] close that decline, but then actually accelerate labour force participation, there is a bigger opportunity there to drive GDP growth,"she said.

To make these changes, Vogel said that more women need to be unburdened from responsibilities of unpaid child care work at home and given more opportunities to enter the workforce.As well, more women need to be encouraged to work in leadership and managerial positions in addition to the sectors of growth, she said.

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