Women’s Financial Independence: A Global and Canadian Perspective by K. Kamal

Women’s Financial Independence: A Global and Canadian Perspective

By K. Kamal | November 15, 2024

Achieving financial independence is a key pillar of gender equality, enabling women to make autonomous life choices, secure their financial futures, and actively contribute to the economy. While significant progress has been made in countries like Canada, challenges remain both domestically and internationally, that prevent many women from achieving true financial independence.

Women’s Financial Independence in Canada

In Canada, women have made significant progress toward economic equality. Women now represent 47% of the workforce and 60% of university graduates (Statistics Canada, 2022). These strides in education and labor force participation reflect growing opportunities for women in various sectors. However, there are still considerable barriers. One of the most persistent issues is the gender wage gap. Women in Canada earn about 87 cents for every dollar earned by men, with disparities widening for women of color, Indigenous women, and those working in lower-paying industries (Statistics Canada, 2022).

Another significant challenge is the disproportionate burden of unpaid caregiving. Women in Canada continue to carry the majority of caregiving responsibilities, such as raising children and caring for aging parents. This unpaid labor often leads to career interruptions and limits women’s opportunities to advance professionally, resulting in lower lifetime earnings and retirement savings (Statistics Canada, 2023). These factors also contribute to the wealth gap, with women less likely to own property or accumulate significant wealth compared to men.

Despite these challenges, certain government policies have helped support women’s economic participation. Initiatives like paid parental leave and efforts to close the gender wage gap in the workplace have contributed to greater gender equity in Canadian society. However, more work remains to ensure that all women can achieve financial independence.

Global Trends in Women’s Financial Independence

Globally, the picture of women’s financial independence is mixed, with significant regional disparities. In countries such as Iceland and Finland, women experience relatively high levels of gender equality. These nations have made substantial progress in reducing the gender wage gap, with women earning closer to men’s wages and achieving high participation rates in the workforce (World Economic Forum, 2023). These countries have prioritized policies that support women’s economic empowerment, such as strong parental leave policies and access to affordable childcare.

In contrast, many countries in South Asia and Sub-Saharan Africa face different challenges. In these regions, women are often more likely to engage in entrepreneurship, but this is typically driven by necessity rather than opportunity. Many women start small businesses to support their families due to limited access to formal employment opportunities (World Bank, 2023). Women entrepreneurs in these areas often face barriers like lack of access to finance, mentorship, and market opportunities, making it harder for them to grow their businesses or accumulate wealth.

In Middle Eastern and North African countries, legal and cultural barriers continue to restrict women’s ability to fully participate in the workforce. In many of these regions, women face restrictions on property rights, inheritance, and the ability to work outside the home. These obstacles significantly limit their financial autonomy and independence (UN Women, 2022).

Moving Forward: The Path to Financial Independence

Despite the challenges, significant progress is being made. Globally, there is an increasing push for policies that promote equal pay, better access to financial services, and greater representation of women in leadership roles. Financial literacy programs and initiatives to support women entrepreneurs are empowering women to take control of their financial futures (World Bank, 2023).

In Canada, further progress can be made by continuing to address the gender wage gap and ensuring that unpaid caregiving responsibilities are more equally shared. Supporting women in traditionally male-dominated industries, as well as improving access to entrepreneurial funding for women, will also be critical to closing the financial gender gap.

Ultimately, achieving financial independence for women is not just a matter of fairness, but also a necessary step toward building more inclusive, equitable, and prosperous societies. Empowering women financially has the potential to create a ripple effect, positively impacting entire communities and economies.

K. Kamal
OCIC Youth Policy-Makers Hub Member

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