Women’s road to society

In 2023, women’s employment rate in Finland surpassed men’s employment rate for the first time. It was a historic moment: Finnish women’s journey into the workforce has been long, winding, and heavily influenced by global historical trends. But is a similar path possible for women in developing countries who are currently seeking their place in the labor market?

Finnish women’s employment saw a significant, albeit temporary, boost during the Winter War and Continuation War, when women were needed in factory jobs as men went to fight at the front. However, it wasn’t until the political reforms of the 1960s—such as the development of daycare services, the introduction of the right to childcare for all children, and the abolition of joint taxation for married couples—that women’s employment became sustainably supported. And one cannot underestimate the change in societal attitudes: it wasn’t until after the wars that women’s education began to be viewed as something more than a pastime for general enlightenment.

The story of gender equality in Finland is still unfinished, but it has advanced far enough to serve as a model for development cooperation efforts supported by Finland, aimed at achieving similar progress tied to work and economic independence.

Is the story of women’s employment progress in Finland possible in East Africa?

Jenna Kettunen, an expert in livelihood programs at the Finnish development cooperation organization International Solidarity Foundation (ISF) and a seasoned development professional, is the right person to answer.

“An optimist would say, hopefully yes,” Kettunen begins.

She explains that East African women’s starting points are very different, as women in countries like Ethiopia and Kenya are already largely part of the workforce. While about 64% of women aged 15–64 in Finland are employed, the corresponding figure in Kenya is 72% and in Ethiopia 75%.

“Whereas Finnish women are primarily employed in service or post-industrial sectors, East African women typically work in agriculture or in the informal labor market,” Kettunen continues.

“The seemingly high employment rates conceal the relatively weaker position of women and the uncertainties of the labor market.”

The so-called U-curve describes the global labor market for women

Employment levels on the U-curve are highest in the world’s lowest-income and highest-income countries. In the poorest countries, women typically work out of necessity to support their families. However, their incomes and professional status often lag behind those of men. In the wealthiest countries, by contrast, women’s employment levels and position in the labor market are nearly equal to those of men. In middle-income countries, such as many Arab nations, women’s employment is significantly less common.

Does this mean that, as development progresses, women might drop out of the labor market when family income no longer requires their participation?

“It’s impossible to say, but such a byproduct of economic development is certainly not desirable,” Kettunen states.

“Instead of viewing women as a reserve labor force to be called upon when needed, all development efforts should focus on improving women’s rights and ensuring their equal position in society. Only economic development rooted in the ideal of gender equality can avoid undesirable pitfalls.”

How are women’s rights built sustainably?

The war highlighted in Finland’s story serves as an example of a window of opportunity for women. For instance, in Rwanda, women became more integrated into the labor market following a brutal civil war.

However, war cannot be a goal, nor is its impact straightforward. In Finland, for example, the post-war period saw society revert closer to pre-war norms, and the promising developments in women’s workforce participation stalled. It was only through systematic policy measures, implemented over a decade later, that the situation began to improve gradually.

“Attitude shifts are also a key focus in Solidaarisuus’ work,” says Jenna Kettunen.

“The same kind of shift that was needed in Finland back then: the understanding that raising children and household responsibilities are not solely women’s duties. And recognizing that educating girls and women is just as important as educating boys and men.”

In addition to changing attitudes, Finnish women benefited from global economic conditions that supported their entry into the workforce. Tariffs protected domestic markets, trade with the Soviet Union absorbed even lower-quality goods, and Finnish companies didn’t funnel their earnings into offshore tax havens.

“The current situation is far less favorable for women worldwide seeking their place in the labor market,” Kettunen points out. “For example, the outflow of capital from Africa to Europe is many times greater than the investments made into Africa.”

For women to rise as equal participants in the workforce, not only are the ideals of gender equality and deliberate efforts necessary, but so is the fairness of the global economy.

“The challenge of women’s employment cannot be left solely to the responsibility of individual communities or states. Change is also needed globally, for instance, in taxation policies,” Kettunen concludes.

The article was first published in Eläkkeensaaja magazine, issue 4/2024.