In a pattern observed across much of Latin America, Paraguay’s female participation in the labor market reached 60.9% by the end of 2024, marking significant progress in women’s economic integration. This South American nation of approximately 7 million people has seen steady improvement in female workforce inclusion over the past decade, though like many of its regional neighbors, structural barriers to gender equality remain entrenched.
The female unemployment rate in Paraguay stands at 5.2%—the lowest in eight years and comparable to several other South American economies. However, this figure continues to exceed the male unemployment rate, reflecting a regional trend where women face greater obstacles in securing stable employment. The employment rate for women measures 57.7%, trailing 21.5 percentage points behind their male counterparts—a gap wider than some neighboring countries but narrower than others in the region. This disparity highlights the ongoing challenge of incorporating women fully into the formal economy, an issue that extends throughout much of Latin America.
Education does not appear to be the limiting factor in Paraguay’s female employment situation. Women in Paraguay, as in several other Latin American nations, average more years of formal education than the general population. Despite this educational advantage, over 7% of Paraguayan women are underemployed—working fewer hours than desired or in positions that fail to match their qualifications. This phenomenon of female underemployment despite higher education levels mirrors patterns seen in countries like Brazil, Colombia, and Argentina, suggesting regional structural barriers rather than country-specific issues.
The wage gap presents another significant challenge in Paraguay’s labor landscape. Women earn approximately 76% of what men receive for equivalent work, a disparity rate close to the Latin American average. This income inequality stems partly from the concentration of female workers in lower-paying sectors and positions with limited advancement opportunities—a pattern replicated across economies at similar development stages. In Paraguay’s case, women are heavily represented in domestic service, retail, and education sectors, while maintaining lower representation in higher-paying industries like technology, finance, and upper management.
Addressing these disparities will require strengthened gender-focused labor policies similar to those being implemented in various countries worldwide. Recommended interventions include enforcing equal pay legislation, creating targeted training programs for women in high-growth sectors, incentivizing female entrepreneurship, and expanding access to traditionally male-dominated industries. These approaches have shown success in reducing gender gaps in diverse economic contexts from Scandinavia to parts of Southeast Asia, suggesting potential applicability to Paraguay’s situation.
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While Paraguay has made notable strides in female economic participation, the country continues to confront challenges common throughout Latin America and other developing regions. Successfully addressing these persistent inequalities would not only benefit Paraguayan women but could significantly boost the nation’s economic output and competitiveness. According to global economic analyses, closing gender gaps in labor participation could potentially increase Paraguay’s GDP by an estimated 8-10%, aligning with projections for other countries with similar gender disparity profiles.
El artículo en español aquí.
