Tailored policies key to supporting women in workforce, says World Bank

 The institution’s senior economist, Shakira Teh Sharifuddin, says quality childcare and flexible work arrangements are key to helping women who are also caregivers return after career breaks.

World Bank senior economist Shakira Teh Sharifuddin says a key concern for Malaysia is retaining women employees in the workforce. (File pic)

PETALING JAYA:

 A World Bank senior economist has suggested that tailored policy solutions rather than blanket policies be introduced to help women rejoin the workforce after taking temporary career breaks.

Shakira Teh Sharifuddin emphasised it is also critical to recognise that while the issue of women’s labour market participation is widespread, the challenges and perceptions of employment vary across different groups of women.

“Caregivers, who are mostly women, face real constraints in staying employed over time.

“They also face workplace discrimination, health issues, and limited job opportunities, particularly in low-income areas such as PPR public housing and lagging states like Kelantan, which further discourage their return to the labour market,” she told FMT.

Shakira Teh Sharifuddin.

In a recent panel discussion, Shakira revealed that a key concern for Malaysia is retaining female employees in the workforce in its efforts to boost their labour participation.

She cited data from the statistics department showing that female labour force participation (FLFP) peaks at 77.4% among women aged 25 to 29, but drops to 74.5% for those aged 30 to 34.

The same data showed that the trend continues downward with age, falling to 52.4% for women aged 50 to 54 and just 36% among those aged 55 to 59. In comparison, male participation remains above 90% between the ages of 25 and 54.

She said the figures point to a structural challenge, where many Malaysian women exit the workforce in their 30s and often do not return. This contrasts with patterns seen in other countries, where women typically re-enter employment after temporary breaks for caregiving.

Shakira said caregiving remains the main reason women leave the workforce, with responsibilities spanning childcare, eldercare and household work.

She added that this is compounded by a lack of flexible work options and insufficient access to affordable, good-quality childcare services.

Prime Minister Anwar Ibrahim announced in Budget 2024 that women who return to the workforce would receive tax incentives, and this initiative has been extended to Dec 31, 2027.

How other nations do it

Referencing other countries, Shakira said targeted, family-friendly policies have helped improve women’s participation in the workforce.

“In Brazil, the Proinfância programme co-finances on-site childcare facilities with private companies. This led to new childcare centres in nearly 45% of municipalities between 2008 and 2017, resulting in a 1% increase in FLFP among primary- and secondary-educated women.”

In Spain, the introduction of paid paternity leave encouraged greater involvement by fathers in childcare, which in turn supported women’s continued employment.

In Germany and Spain, targeted leave policies have also helped mothers return to paid work, she said.

In Germany, a parental benefit giving a “bonus” of two additional months of leave to households in which the father took at least two months off raised mothers’ employment probability by up to 10%.

Similarly, the introduction of two weeks of paternity leave in Spain led to an increase of 5-7% in female labour force participation.

Shakira added that Singapore offers further examples of successful reintegration programmes. Its herCareer and Women@Work initiatives provide training allowances, reskilling opportunities, and retention incentives — enabling over 68,000 women to rejoin the workforce as of 2022.

Shakira also added that in designing policies to promote an inclusive workforce particularly for women, it is essential to recognise that it should not be designed solely for women.

“Workplace policies must be inclusive. Men also face caregiving responsibilities. Making flexible work, parental leave, and return-to-work support available to all employees helps to shift norms and prevents bias in hiring,” she said.

She added that career breaks can occur for reasons beyond caregiving, including health or personal circumstances, and inclusive policies that recognise this reality are critical to creating a more resilient and equitable labour market.

“This means recognising caregiving as a legitimate career break, creating pathways back to work, and supporting women, and men, to participate meaningfully in the workforce at every life stage,” she added. - FMT