Opportunities for women in the workplace have rapidly improved in the UK since 2000, but it will take until 2041 for the gender pay gap to close, according to research from PwC
The firm’s annual Women in Work Index, which measures levels of female economic empowerment across 33 OECD countries based on five key indicators, now places the UK in 13th place overall, and second only to Canada in the G7.
The improvement is down to increasing female employment rates, a narrowing of the gender pay gap and a reduction of the gap between male and female labour force participation rates.
However, the UK still falls behind on the number of women workers in full-time employment and ranks 30th out of 33 countries on this indicator, far below the OECD average.
PwC’s research shows that based on a continuation of historical trends it will take another 24 years to close the gender pay gap.
Financial services is the sector with the largest gender pay gap at 34%, whereas public administration and support services have the lowest at 15% and 13%, respectively.
The West Midlands has the largest gender pay gap at 21% and over half (52%) of women in the region are employed in lower-paying sectors such as wholesale and retail trade, and health services. In contrast, Northern Ireland has the smallest pay gap, falling from 22% in 2000 to 6% now, partly driven by a higher than average share of women working in public administration, which has a smaller pay gap.
Yong Jing Teow, economist at PwC, said: ‘By fully closing the gender pay gap we could boost women’s earnings by £85bn, which is an average of £6,100 per woman per year. It’s not just about getting more women working, but also about getting more of them into high quality jobs that offer career progression and flexibility.’
Laura Hinton, executive board member and head of people at PwC, said: ‘While it’s encouraging that the UK is making progress on closing the gender pay gap, it is depressing that it will still take around a generation to close it completely. Pay reporting requirements should help speed up change as businesses will face greater accountability. But merely reporting numbers without any concrete action, won’t change anything.’
The survey also indicated that some countries, such as Poland, Luxembourg and Belgium, could close their gender pay gaps within two decades if historical trends continue. Much slower progress in Germany and Spain means that their pay gap might not close for over two centuries unless underlying structural factors are addressed, PwC found.
PwC’s Women in Work Index is here.
