Women are the primary drivers of Vanuatu’s agriculture, tourism and local commerce, yet they still face a massive gap in earnings compared to their male counterparts. This gender wage in Vanuatu hinders financial independence and increases the risk of poverty for families across the islands. Because women also shoulder the majority of unpaid labor, particularly in rural villages where resources are scarce, a lack of education and infrastructure often blocks their path to economic equality. Today, a mix of government agencies and global organizations are working to break these cycles and close the gender wage gap in Vanuatu.

1. Gap in Labor Force Participation

According to the 2020 National Population and Housing Census, the labor force participation rate for women sits at 42.1%, while men participate at a rate of 51.5%. This nearly 10% difference highlights how few women are entering the formal workforce. Beyond the numbers, women are also struggling with a “data gap.” The UN Women Data Hub notes that essential labor indicators, including specific pay gap statistics, are still missing for Vanuatu, making it difficult for policymakers to address the root of the problem. Limited access to formal employment also increases women’s vulnerability to poverty, especially in households that rely on a single income source.

2. Many Women Work in Informal Jobs

Most women in Vanuatu earn their living through informal channels like market vending, subsistence farming and handicraft sales. These jobs rarely offer legal protections or steady paychecks. While women make up between 75% and 90% of all market vendors in the Pacific, they are rarely given a seat at the table when it comes to managing those workplaces. Furthermore, approximately two-thirds of these women remain “unbanked,” meaning they lack the credit and financial tools needed to grow their operations. As a result, many women struggle to escape cycles of poverty because they cannot safely save money or expand their businesses.

3. Rural Communities Face Greater Economic Challenges

 Geography plays a major role in the gender wage gap in Vanuatu, as 77.7% of Vanuatu’s female population lives in rural areas. These women must constantly balance agricultural production with domestic duties. The 2022 National Agricultural Census found that women make up 51% of agricultural household members, yet they face the biggest hurdles in turning that labor into a stable income. Without reliable transportation or local banking, rural women are often locked out of the wider economy. These barriers make it harder for women in rural communities to earn stable wages and support their families financially.

4. Lowest Globally for Political Empowerment

Economic power and political power go hand in hand. The World Economic Forum’s Global Gender Gap Report recently ranked Vanuatu among the lowest in the world for political empowerment, with a score of only 0.6% parity. As of early 2024, women held a mere 2% of parliamentary seats. This lack of representation means that women’s perspectives are often missing when laws regarding labor rights, pay equity and economic development are written.

5. Poverty and Economic Inequality Continue To Affect Women

The gender wage gap in Vanuatu continues to drive poverty, especially among women living in rural areas and working in informal sectors. According to the Asian Development Bank, approximately 39% of Vanuatu’s population lives below the national basic needs poverty line. Employers often pay women lower and less stable wages through jobs such as market vending, subsistence farming and informal trade. In addition to earning income, many women also manage unpaid domestic labor and childcare responsibilities, which limits their ability to pursue higher-paying opportunities. The gender wage gap in Vanuatu therefore contributes to cycles of poverty that affect both women and their families, particularly during economic or climate-related crises.

6. UN Women’s Markets for Change

The Markets for Change initiative, launched in 2014, has become a vital lifeline for female vendors. The program has reached more than 50,500 people across 26 markets in the Pacific, including Vanuatu. By focusing on financial literacy and better market infrastructure, the project helps women transition from simply surviving to actually managing their own finances. A second phase of this project, backed by the Australian Government, is currently set to run through 2026. The program has also helped improve sanitation, safety and leadership opportunities within marketplaces, allowing women vendors to work in more stable environments. The initiative reduces poverty among market vendors and their families by improving women’s financial stability and workplace conditions across more than 50,000 participants in the Pacific.

7. The Government and International Partners

Vanuatu’s government is starting to take the income gap more seriously through its National Gender Equality Policy. This plan aims to boost productivity by supporting women-owned businesses and improving local marketplaces. These efforts reflect a growing consensus: closing the gender wage gap in Vanuatu is not just a matter of fairness, it is essential for the country’s economic future. These policies could reduce poverty by increasing women’s access to stable incomes in a country where around 39% of people already live below the basic needs poverty line.

8. SAVER PLUS

The SAVER PLUS initiative supports women working in Vanuatu’s informal economy by helping them open bank accounts, improve financial literacy and develop long term saving habits. Since 2019, the UNDP-ANZ partnership behind the initiative has delivered financial literacy training to more than 2,800 vendors and farmers across the pacific islands. More than 400 women in Vanuatu alone have received training in the past two years. In a 2025 cohort, 28 women market vendors completed a 10-month savings and financial literacy program that offered matched savings of up to VT26,000. These efforts are especially important because only 32% of female adults in Vanuatu previously reported owning a bank account, compared to the 41% of men. By increasing women’s financial independence and access to banking services, SAVER PLUS helps address poverty and supports efforts to reduce the gender wage gap in Vanuatu.

Looking Ahead

The gender wage gap in Vanuatu continues to limit economic opportunities for women across the country, particularly in rural and informal communities. However, government policies and international initiatives are helping women gain financial independence, improve workplace conditions and access banking services. As Vanuatu continues addressing gender inequality, closing the wage gap could play a major role in reducing poverty and strengthening the country’s long term economic stability.

– Nay Mohamad

Nay is based in Milan, Italy and focuses on Good News and Technology for The Borgen Project.

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