Introduction

Women who work in the informal economy face barriers. Gaps also remain in their legal protection. Women’s work is shaped by changes in the labor market, and informal work opportunities shape women’s lives. However, digital tools can help women gain rights, services, and better job options. Women may soon benefit from fairer and more equal conditions in the workforce.

Gender Gaps in the South African Labor Market 

Gender gaps in labor remain large in South Africa. They are strongly linked to long-standing social and economic inequalities. In 2025, women’s unemployment reached 35.9 percent. About 16 percent of the employed women, meaning 1.2 million women, work in the informal sector. Most of them work without contracts or social protection. These numbers reflect deeper challenges, including limited access to training and the unequal share of unpaid care work carried by women. As a result, many women remain concentrated in low-paid and informal jobs.

Female graduates in South Africa face higher unemployment than men with the same education. About 15 percent of women with a university degree are unemployed, compared with 8.9 percent of men. The gap is even larger for people with less schooling. Women without a completed high school degree face an unemployment rate of about 43 percent, while the rate for men of the same education level is around 37 percent. This shows how women with limited education are especially vulnerable in the labor market.

In South Africa, unpaid care work causes large gender gaps in jobs. Women spend about 30.5 hours per week on housework and caregiving. Meanwhile, men spend only 12.2 hours. This leaves women with less time for paid labor. In South Africa, domestic work has long been seen as a woman’s job. This is because of old labor systems from the apartheid era and ongoing income inequality. About 11 percent of working women are domestic workers. Around 80 percent of these domestic jobs are informal. Because of this, many women remain economically vulnerable, even when they have an education. Noting this and other issues, South Africa hosted the Financial Inclusion and Women Empowerment Conference in May 2025, which introduced a Guidelines Framework for Mainstreaming Women’s Priorities.

To reduce these gaps, women would benefit from better skill training and safer job options. The United Nations Development Programme (UNDP) created the Digital Innovation for Modernizing the Independent Economy (DIME). This project supports small shops in South Africa’s townships. It helps improve safety and use digital tools. It also offers training in food safety, digital skills, and basic business management. DIME focuses on women and young people and supports them as leaders in their communities. The project has digitally registered 20,000 township shops and trained 40 youth digital ambassadors—60 percent of whom are women. These shops now use digital systems to improve food safety and track their stock. As of 2025, many South African women are actively pursuing entrepreneurship; a majority identify as business owners or are interested in starting their own enterprises.

Digital Innovation Can Support Women in the Informal Economy

In 2025, the Algorand Foundation launched the Digital Health Passport in partnership with India’s Self-Employed Women’s Association (SEWA) to support women in the informal economy. Many of these women lack basic documents, such as identity cards, proof of address, or work records, which are required to access public health care and social benefits. The program aims to register approximately 3.5 million women, most of whom work in domestic jobs, construction, or street vending.

With the Digital Health Passport, women can then upload their documents in one place. The system uses blockchain technology to keep data secure. It connects to India’s national ID, called Aadhaar. Aadhaar is a 12-digit ID number. Residents receive it after sharing basic personal details and biometric data, such as fingerprints. However, many women do not have Aadhaar. They may lack formal paperwork or face barriers during enrollment. While Aadhaar is not required to use the passport, linking it helps confirm identity and improves access to public services.

Through local centers and community workers, women can verify and store their documents digitally. The system also connects to DigiLocker, a government platform that stores official documents, making it easier to share verified records. With a reliable digital identity, women can access health coverage, pensions, housing support, and food programs. This is particularly important for informal workers, who must enroll in government schemes to receive benefits.

The project was first tested with 200 women and is now expanding to reach hundreds of thousands. The goal is to eventually support all 3.5 million SEWA members. This transition from pilot to full deployment shows early uptake and momentum.

Conclusion

Gender gaps in the labor market are still large. Many women face high unemployment and unstable work. Women also do most of the unpaid care work at home. This reduces their time for paid jobs. Even when women have the same education as men, they often earn less or work in informal jobs. These conditions make it harder for women to achieve economic stability. Closing these gaps requires clear and sustained action. Women need better access to skills, safe jobs, and social protection. Digital tools can help by making services easier to reach. However, technology alone is not enough. Governments must also invest in education, care services, and labor protection. Together, these steps can support fairer and more inclusive labor markets.

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