EUROPEAN SEMESTER THEMATIC FICHE
LABOUR MARKET PARTICIPATION OF WOMEN
Increasing labour force participation is at the heart of the Europe 2020 strategy, as reflected
in one of its headline targets that 75% of the population aged 20-64 should be employed by
2020. Women represent a large untapped potential on the labour market; raising their
employment rate and tackling gender gaps1 (in particular in terms of pay, economic activity,
career prospects, and pensions) would counteract the shrinking of the workforce, thereby
contributing to ensuring strong sustainable and inclusive growth and jobs.
1. Key statistical indicators
In 2014, the EU-28 employment rate for men aged 20-64 was 75%; for women it was 63.5%.
In all Member States, women's employment rates are lower than men's, with big variations
across the EU. When employment is measured in full-time equivalents, the gaps are even
bigger; even in Member States where female employment rate is relatively high (e.g. Austria,
the Netherlands, Germany and the United Kingdom) (see Figure 1).
1
GDP per capita losses attributable to gender gaps in the labour market have been estimated at up to 10% in
Europe. See David Cuberes, Marc Teignier (2014), Aggregate Costs of Gender Gaps in the Labor Market: A
Quantitative Estimate, available at: http://www.marcteignier.com/research_files/GGLMAP_CT.pdf.
Thematic fiches are supporting background documents prepared by the services of the Commission in
the context of the European Semester of economic policy coordination. They do not necessarily
represent the official position of the Institution.
Figure 1:
2
Gaps between male and female full-time equivalent employment rates (FTER) and employment
rate (ER) in 2014
(women and men aged 20-64)
Source: Eurostat, LFS [lfsi_emp_a] and DG EMPL, own calculations.
The gender employment gap is strongly linked to family and care activities, with women more
likely to work fewer hours or work in the home due to family and care-related activities (see
Figure 2). Having children tends to decrease employment rates for women (except in
Portugal, Sweden, Slovenia, Luxembourg and Greece); for men, having children tends to
increase employment rates. The employment impact of parenthood on women varies
considerably across the Member States and is extremely high in some cases (e.g. Hungary,
Slovakia, Czech Republic and Estonia).
2
Full time equivalents calculated with regard to the working time of a full-time full-year employee.
2
Figure 2:
Employment impact of parenthood in 2014
(Difference in percentage points between employment rate of adults, aged 20-49, with a child less than 6 years
and without children, by sex)
Source: Eurostat, LFS.
Women are more often involved in childcare duties, especially when care services are
lacking or do not meet the needs of (full-time) working parents (e.g. availability of services
and access problems, distance or opening hours). In this respect, little progress has been
made in the provision of childcare services to meet the targets set by the European Council
in Barcelona in 20023. In 2013, just nine Member States the first target, and nine met the
second (see Figure 3). Moreover, the high cost of care facilities increases the marginal
effective tax rates for second earners, and so act as a disincentive to take up work or
increase working hours.
3
To provide childcare by 2010 to at least 90% of children between three and the mandatory school age and
for at least 33% of children under three.
3
Figure 3:
Children cared for by formal arrangements in 2013
(% of the population of each age group by weekly time spent in care)
Children up to three years of age
Children from three years of age to mandatory
school age
BE
DK
SE
FR
MT
SI
EE
ES
IT
IE
EA19
DE
NL
PT
HU
EU28
CY
AT
FI
LV
BG
CZ
SK
LT
LU
UK
EL
RO
HR
PL
DK
SE
LU
NL
BE
FR
SI
PT
ES
EA19
UK
IE
DE
FI
EU28
CY
LV
IT
EE
MT
AT
EL
LT
HR
BG
HU
RO
PL
SK
CZ
0
20
1-29 hours
40
60
0
80
50
1-29 hours
30h and more
100
150
30 hours and more
Source: Eurostat, EU-SILC. Note: data for Ireland refers to 2011; the value for PT for the variable Children up to three years
of age, 1-29 hours, refers to 2011.
Unequal sharing of unpaid work between men and women – particularly linked to care, as
mentioned above – strongly influences decisions about labour market participation and work
intensity of women and men. With parenthood, women tend to decrease their paid working
hours, while men tend to increase them. Overall, when paid work, commuting, and unpaid
work hours are all taken into account, women work longer hours each week than men: 64
hours a week, as compared to 53 for men. In one survey, 80% of men and women
complained their working hours do not fit with family or social commitments outside work.4
4
Eurofound (2013), Women, men and working conditions in Europe. A report based on the fifth European
Working Conditions Survey, available at:
http://www.eurofound.europa.eu/publications/htmlfiles/ef1349.htm.
4
There are still large differences between the Member States regarding flexibility of working
time. Women report substantially less family-related work schedule flexibility than men
(independently of whether or not there are young children in the household).
According to the Employment and Social Developments Annual Report (ESDE 2013),5 more
women than men have working arrangements set entirely by employers (except in the
Netherlands, Luxembourg, Sweden, Germany, Portugal and Romania).
Figure 4:
Flexible working time regimes
Note:
Difference in percentage points.
Source: ESDE 2013, page 226 (chart A.13), based on the European Working Conditions Survey (EWCS 2010), Q39: How are
your working time arrangements set? The longer the women are out of the labour market or unemployed, the more difficult it is
for them to find a job in the long term. The gender employment gap is widening through the life cycle and reaches a peak for the
older cohort. In 2014, the gap was 7.7 pps for the young- (20-29 years old), 11.8 pps for the middle age- (30-54 years old) and
reached 13.7 pps for the older cohort (55-64 years old).
The employment rate of older women is strikingly low in some Member States – around or
less than 30% in Romania, Poland, Croatia, Greece, Slovenia, and Malta (see Figure 5).
Breaks in working life result in fewer career options. In combination with lack of care facilities,
this can push older women out of the labour market to provide care for grandchildren or the
elderly (see Figure 9b).
5
The Gender Impact of the Crisis and the Gap in Total Hours Worked (chapter 5, p. 226), available at:
http://ec.europa.eu/social/main.jsp?catId=738&langId=en&pubId=7684.
5
Figure 5:
Employment rate by sex, 55-64 years old, 2014
(% of women and men aged 55-64)
Source: Eurostat, LFS [lfsi_emp_a].
Women participate less in the labour market; they participate differently (for example with
more part-time jobs associated with lower hourly earnings and lower career prospects); and
they have shorter and more discontinuous working lives, stemming from parenthood, care
roles and the traditional division of unpaid work. Combined with segregation and other forms
of discrimination, these factors all add up to the gender pay gap (see Table 1).
6
Table 1:
Gender pay gap
(Difference between men's and women's average gross hourly earnings as percentage of men's average
gross hourly earnings - for paid employees)
BE
BG
CZ
DK
DE
EE
IE
EL
ES
FR
HR
IT
CY
LV
LT
LU
HU
MT
NL
AT
PL
PT
RO
SI
SK
FI
SE
UK
EU28
EA19
2007
10.1
12.1
23.6
17.7
22.8
30.9
17.3
21.5
18.1
17.3
:
5.1
22
13.6
22.6
10.2
16.3
7.8
19.3
25.5
14.9
8.5
12.5
5
23.6
20.2
17.8
20.8
:
:
2008
10.2
12.3
26.2
17.1
22.8
27.6
12.6
22
16.1
16.9
:
4.9
19.5
11.8
21.6
9.7
17.5
9.2
18.9
25.1
11.4
9.2
8.5
4.1
20.9
20.5
16.9
21.4
:
:
2009
10.1
13.3
25.9
16.8
22.6
26.6
12.6
:
16.7
15.2
:
5.5
17.8
13.1
15.3
9.2
17.1
7.7
18.5
24.3
8
10
7.4
-0.9
21.9
20.8
15.7
20.6
:
:
2010
10.2
13
21.6
15.9
22.3
27.7
13.9
15
16.2
15.6
5.7
5.3
16.8
15.5
14.6
8.7
17.6
7.2
17.8
24
4.5
12.8
8.8
0.9
19.6
20.3
15.4
19.5
16.1
16.4
2011
10.2
13
22.6
16.3
22.2
27.3
11.7
:
17.9
15.6
3.4
5.8
16.4
13.6
11.9
8.7
18
6.2
17.9
23.7
5.5
12.8
11
2.3
20.5
19.6
15.8
20.1
16.4
16.6
2012
10
14.7
22.2
16.8
22.4
30
14.4
:
19.3
15.4
2.9
6.7
16.2
13.8
12.6
8.6
20.1
6.5
16.9
23.4
6.4
14.8
9.7
2.5
21.5
19.4
15.9
19.1
16.5
16.9
2013
9.8
13.5
22.1
16.4
21.6
29.9
:
:
19.3
15.2
7.4
7.3
15.8
14.4
13.3
8.6
18.4
5.1
16
23
6.4
13
9.1
3.2
19.8
18.7
15.2
19.7
16.4
16.6
Difference
2013 - 2008
-0.4
1.2
-4.1
-0.7
-1.2
2.3
:
:
3.2
-1.7
:
2.4
-3.7
2.6
-8.3
-1.1
0.9
-4.1
-2.9
-2.1
-5
3.8
0.6
-0.9
-1.1
-1.8
-1.7
-1.7
:
:
Source: Eurostat; unadjusted; Industry, construction and services (except public administration, defence, compulsory social
security).
The prevailing gender gaps at working age subsequently result in wide pension and poverty
gender gaps in old age (see Figure 6 and Figure 7). Although some countries provide child
credits, which are an important measure, they are not sufficient to compensate for
differences in working histories between women and men (see Figure 13). Figure 6 below
shows the difference in average pensions between men and women over 65 (calculated
before tax is deducted); Figure 7 shows the difference in the risk of poverty and exclusion
between women and men 55 or over.
7
Figure 6:
Gender Gap in Pension (%), pensioners aged over 65 years
Source: Estimation based on EU-SILC 2012.
Figure 7:
People at risk of poverty or social exclusion (percentage of total population, 55 years or over)
in 2013
60
Females
Males
40
30
20
10
0
CZ
SE
NL
LU
DK
FR
SK
FI
AT
EA18
DE
ES
EU28
BE
UK
SI
IT
IE
MT
PL
CY
EE
PT
HU
LT
EL
HR
LV
RO
BG
% of respective population
50
Source: Eurostat, EU-SILC; Ireland: 2011 data.
8
2. Assessment of the main challenges in the Member
States
The female employment rate is very low in some Member States…

The highest gap between male and female employment rates is to be found in Malta
(around 30 percentage points; 33.5 percentage points if considering full-time equivalent
rates). Italy, Greece, the Czech Republic, Romania, Slovakia, Poland, Hungary,
Luxembourg and Ireland also face higher differences between female and male
employment rates than EU average (see Figures 1 and 8);

With a female employment rate under 60% in Greece, Italy, Malta, Croatia, Spain,
Romania, Slovakia and Poland, greater involvement of women in the workforce is
particularly challenging for these Member States (see Figure 8); most of these Member
States also face severe demographic ageing and the main potential for labour supply
lies with women;

Furthermore, the female employment rate for the older age cohort (age 55-64) is in
some cases strikingly low. As shown in Figure 5, it is below 30% in Malta, Slovenia,
Greece and Croatia. This may reflect the unavailability of care facilities for grandchildren or dependent parents (Figures 3, 9a, 9b), coupled with possible early retirement
options and difficulties in finding a job after being unemployed for a long period (Figure
13).
… and even lower when considering the full-time equivalent employment rate…
6

The share of part-time employment among women is very high in some Member
States. Some of these Member States have high female employment rates, but these
rates are smaller when expressed as "full-time equivalents" (see Figure 1 and Table 2).
The situation is very typical in the Netherlands, where above 75% of employed women
worked part-time in 2014; but it is also high in Germany, Austria, Sweden, the United
Kingdom, Belgium and Luxembourg (see Figure 8). On average across the EU, men
spend 7 hours a week more in paid work than women. While working part-time can
reflect preferences, the high share of part-time employment may also stem from
constraints such as lack of care services and unequal division of unpaid work, or low
financial incentives to take up full-time work. This can be seen in Table 46, which
shows that second earners in dual-earning couples face high disincentives to make the
transition from part-time to full-time employment in Belgium, Slovenia, Italy and
Germany;

Conversely, very low rates of part-time work are also problematic as they may result
from a lack of flexible working. This is the case in Bulgaria, Slovakia, Croatia and the
Czech Republic, where part-time employment accounts for less than 5%, and Hungary,
Latvia, Poland, Estonia, Lithuania, Romania, Greece, Slovenia, and Portugal where it is
below 10% (see Figure 8 and Table 2).
The increase of earnings from 33% to 67% of the average wage is used as a proxy to the transition from
part-time to full-time employment.
9
… the lack of childcare facilities are a major barrier to employment …

For a number of countries the impact of parenthood is high and the employment rate
for women with children is more than 20 percentage points lower than the employment
rate of childless women: the Czech Republic, Hungary Slovakia, Estonia and Finland
(see Figure 2). It is close to 20 percentage points in Germany and the United Kingdom;

More than 20% of the potential female workforce in 2012 is inactive or work part-time
because of personal and family responsibilities in Malta, the Netherlands,
Luxembourg, the United Kingdom, Austria, Ireland and Germany (see Figure 9a);

In many Member States, the share of children enrolled in formal care is very low
which may reflect possible shortfalls in the provision of formal childcare services,
especially for children up to three years of age, or the cost of such services. This is
particularly visible in the Czech Republic, Slovakia, Poland, and Romania where in 2013
less than 10% of children under three are enrolled in formal care (see Figure 3).

Childcare costs can be a further disincentive to start or return to work for a second
earner in a dual earning couple. This is particularly the case in the United Kingdom and
Ireland where childcare-related costs represent more than 23% of net family income
(see Figure 10a and 10b). The impact is even greater for low-income families.7
… while financial disincentives to work are numerous…

The gender pay gap remains high in Europe (16.4% in 2013 in the EU28) and is
particularly high in Estonia, Austria, Germany, Czech Republic, Slovakia, and the United
Kingdom (see Table 1).

Tax and benefit systems may be a further disincentive to work. Due to an increase in
effective tax rates when moving from inactivity to employment (inactivity trap), or when
wages increase (low wage trap and part-time trap), the participation of women in the
labour market may be discouraged. The contribution to the inactivity trap from labour
tax is highest in Belgium, Germany, the Netherlands and Latvia, and, to a somewhat
lesser extent, in France and Italy. The low-wage trap is highest in Belgium, Italy and
Germany (see Table 4).
…this leads to social challenges for older women.

7
For those 55 and over, women are more likely than men to be at risk of poverty or
social exclusion in all Member States except Ireland. This can reflect the specificities of
the pension system and that women live longer than men: however the employmentrelated challenges facing women are important causes. For this age group, the
greatest risk of poverty or social exclusion is found in Bulgaria (over 50%), but is also
quite high in Croatia, Latvia, Lithuania and Romania (above 35%) (see Figure 7).
See European Commission (2012), EU Employment and Social Situation, Quarterly Report, September 2012.
10
ANNEX: Additional statistical indicators
Figure 8:
Employment rate and percentage of part-time workers by gender (F/M) in 2014
(% of population aged 20-64)
Source: Eurostat, LFS. Note: Share of part-time workers over the total working population in each gender group. Countries ordered by increasing values of female employment rate.
11
Table 2:
Employment rate, average number of usual weekly hours
8
and employment rate in full-time equivalent of men and women, 2013
Women
Men
Women
Men
Average
number of
usual weekly
hours for all
employees
Men Women
62.9
62
64.7
72.2
73.1
70.6
61.2
44.3
54.8
66.2
54.2
50.3
63.9
68.5
70.6
65.5
60.2
51.9
70.7
70.1
59.4
64.2
57.3
63.6
58.6
72.1
77.6
70.6
63.5
62.7
71.6
68.1
82.2
79.5
82.3
78.3
73
62.6
65
73.6
64.2
69.7
71.6
73.1
73.1
78.4
73.5
80.3
81.4
78.3
73.6
71.3
74
71.6
73.2
74
82.2
81.9
75
73.8
53.3
61.3
62.5
63.5
56.7
68.1
51.8
41.6
48.1
59.1
52.7
43.4
58.5
67.2
69.0
56.8
58.3
46.0
47.6
55.1
57.6
60.5
55.7
60.4
56.9
67.5
70.2
56.9
54.6
:
70.0
67.5
81.7
75.6
78.7
77.1
69.4
60.9
63.0
71.9
63.5
67.5
68.3
72.8
72.9
77.4
72.6
79.5
74.7
75.5
74.1
69.3
72.7
70.9
72.0
71.9
80.0
78.1
72.7
:
38.4
40.8
40.7
34.3
38.4
40
37.7
40.2
39.1
38.5
40.8
38.5
41.1
39.9
38.9
39.7
40.2
39.5
33.4
39.9
41.3
41.5
40.9
40.1
40.5
37.9
37.3
40.9
39.1
38.4
Employment
rate (20 - 24
years old)
BE
BG
CZ
DK
DE
EE
IE
EL
ES
FR
HR
IT
CY
LV
LT
LU
HU
MT
NL
AT
PL
PT
RO
SI
SK
FI
SE
UK
EU28
EA19
8
Employment rate
in full time
equivalent (20 64 years old)
35.3
40.5
39.6
32.5
34.5
38.9
34.5
38.8
36.5
36.1
40.3
35.4
39.6
39.2
38.1
36.9
39.6
37.2
28.9
35.8
39.9
39.9
40.8
39.3
39.7
36.2
35.8
36.5
36.3
35.4
Full time equivalents calculated with regard to the working time of a full-time full-year employee.
12
Source: Eurostat, LFS.
Table 3:
Average hours of women and men in paid and unpaid work per week in 2010
unpaid work unpaid care
Total
M
W
0.6
0.7
8.9
26.4
commuting
time
3.1
3.1
paid work
40.9
33.9
total working
hours
53.5
64
Source: Eurofound (2013), Women, men and working conditions in Europe, A report based on the 5th EWCS,
p.43.
13
Figure 9a:
Inactivity and part-time work due to personal and family responsibilities
men and women in 2012
(% of the whole population 15-64)
Source: Eurostat, LFS. Note: figures for Croatia not available.
Figure 9b:
Percentage of inactive females age 55-64 who are inactive
on the grounds of looking after children or incapacitated adults
and other family responsibilities in 2014
45
40
Looking after children or
incapacitated adults
30
25
20
15
10
5
0
DK
CZ
SI
HR
EL
HU
FI
AT
PL
SK
DE
LU
BE
EE
EU28
NL
EA19
CY
MT
BG
ES
IE
PT
IT
UK
FR
LV
RO
% of inactive 55-64
35
Other family responsabilities
Source: Eurostat, LFS.
14
Table 4:
Tax burden on second earners and female labour market situation
Country
Labour market
performance (1)
Disincentives to work (2)
Inactivity trap (67% AW)
Employment
rate - female
(2013)
Employment
rate - male
(2013)
BG
80.5
74.0
71.5
CY
CZ
AT
BE
DE
DK
EE
EL
ES
FI
FR
HR
HU
IE
IT
LT
LU
LV
MT
NL
PL
PT
RO
SE
SI
SK
UK
Low-wage trap /
Part-time trap
(33% to 67%
AW, 2011)
2013
of which
contribution
from labour
tax (2013)
87.5
84.0
75.0
28.5
46.9
21.6
28.5
46.9
21.6
39.9
62.2
72.6
:
:
:
75.5
78.6
79.0
76.1
51.4
61.2
78.1
76.3
64.9
70.0
65.6
58.0
79.4
75.5
76.1
57.8
78.3
71.2
72.2
68.6
82.7
79.3
69.6
75.1
91.2
88.2
85.0
84.7
71.4
70.4
83.9
85.2
71.6
81.4
76.7
79.2
79.8
90.1
79.9
89.6
86.4
82.7
77.1
83.8
88.0
84.3
82.2
86.7
29.8
43.9
57.6
24.2
14.2
24.3
23.3
34.5
27.9
36.0
18.2
32.2
20.6
25.8
34.7
19.3
36.4
29.5
27.3
28.5
22.6
42.0
25.1
20.0
26.7
43.9
37.7
24.2
24.2
24.3
28.9
31.2
27.9
34.5
18.2
30.6
20.6
25.8
34.7
13.3
36.4
29.5
27.3
28.5
29.4
31.9
25.1
20.0
26.7
58.6
21.6
46.0
53.0
24.0
:
23.4
33.3
42.2
:
37.8
40.2
48.1
41.7
30.4
33.3
20.5
41.3
37.2
30.4
31.7
28.6
51.6
16.4
36.7
Source: Commission Services, OECD. (1) Employment rate for age group 25-54. (2) Inactivity trap for second earner in twoearner married couple with two children, principal earner with 67% of average wage, second earner with 67% of average wage;
low wage / part-time trap for second earner in two-earner married couple with two children, principal earner with 67% of
average wage, second earner moving from 33% to 67% of average wage.
15
Screening principles:
The tax burden on second-earners is considered very high if:

the contribution from labour taxation to the inactivity trap is very high AND/OR

the low-wage trap is very high (with the contribution from labour taxes to the inactivity
trap not being very low. The low-wage trap acts as a disincentive for the secondearner to work full-time, instead of part-time).
If the employment level is very high (either overall or for specific groups), a very high tax
burden is still an issue, but less problematic.
Table 5:
Definitions of the different types of traps
Types of traps
Definitions
Inactivity trap
The inactivity trap - or the implicit tax on returning to work for inactive persons measures the part of additional gross wage that is taxed away in the form of increased
taxes (personal income tax and employee social security contributions, SSC) and
withdrawn benefits such as unemployment benefits, social assistance, and housing
benefits in the case where an inactive person (not entitled to receive unemployment
benefits but eligible for income-tested social assistance) takes up a job. In other words,
this indicator measures the financial disincentives to move from inactivity to employment.
The inactivity trap is also often referred to as the participation tax rate.
Low-wage trap
The low-wage trap is the effective marginal tax rate defined as the rate at which taxes are
increased and benefits withdrawn as earnings rise due to an increase in work
productivity. This kind of trap is most likely to occur at relatively low wage levels due to
the fact that the withdrawal of social transfers (mainly social assistance, in-work benefits
and housing benefits), which are usually available only to persons with a low income,
adds to the marginal rate of income taxes and social security contributions.
16
Figure 10a:
Components of net childcare costs for a couple: full-time care at a typical childcare centre,
2012
(Full-time earnings = 100+100% of average earnings (AW))
Source: OECD Tax-Benefit Models.
Figure 10b:
Components of net childcare costs for a couple: full-time care at a typical childcare centre,
2012
(Full-time earnings = 100+67% of average earnings (AW))
Source: OECD Tax-Benefit Models.
17
Figure 11:
Components of net childcare costs, for a lone parent: full-time care at a typical childcare
centre, 2012
(Full-time earnings = 100% of average earnings
(AW))
Source: OECD Tax-Benefit Models.
Figure 12:
Long-term unemployment (12 months or more) as a percentage of the total unemployment in
2014 for the age group 55-64
90
Males
80
Females
60
50
40
30
20
10
EL
HR
SK
BE
PT
IE
ES
SI
BG
EA19
DE
EE
HU
EU28
FR
IT
LT
NL
PL
LV
CY
CZ
DK
UK
FI
0
SE
percentage points
70
Source: Eurostat, LFS; no data for Luxembourg, Romania, Austria and Malta available.
18
Figure 13:
Percentage point change in current net theoretical replacement rates for a female average
earner who makes a career break during 1, 2 or 3 years for childcare compared to one with no
children
Percentage points (p.p.) Change in Current Net TRR for a female average earner who makes a
career break during 0,1, 2 or 3 years for childcare compared to one with no children
8
6
4
2
0
-2
-4
-6
DE
SI
SK
MT
LU
LT
LV
ES
EL
DK
CZ
BG
SE
BE
IT
FR
EE
PL
AT
CY
PT
NL
FI
IE
RO
UK
HU
-8
Female with children but no break for childcare compared to female with no children
1 year break for childcare compared to female with no children
2 years break for childcare compared to female with no children
3 years break for childcare compared to female with no children
Source: Indicators Subgroup of the SPC, 2010 - 2050 Theoretical Replacement Rates exercise.
19