According to PwC’s Women in Work Index, the UK has slipped behind Canada to its lowest rating among major economies for workplace gender equality in ten years. As a result of Canada’s ongoing improvement, the nation is currently ranked second among G7 countries and 18th overall. The gender wage gap continues to be a significant obstacle that impedes the nation’s progress towards workplace equality.
The study emphasises that the gender pay gap has declined in the UK due in part to the country’s sluggish progress in eliminating it as well as decreasing rates of female unemployment and workforce participation. The gender pay gap could take more than 30 years to fill at the current rate, even though the UK has made slight progress in lowering the earnings gap between men and women.
Although there have been some policy initiatives to address this problem, success has been hampered by the absence of meaningful structural adjustments. Many analysts contend that to hasten the closing of the gender pay gap, the government and business community must cooperate to enact more robust measures, such as improved parental leave regulations and mandated pay transparency.
Which nations have the highest rates of workplace gender equality?
The rankings, which take into account things like employment levels and the gender wage gap, showed Iceland, New Zealand, and Luxembourg as the highest achievers. These nations have enacted progressive rules encouraging wage transparency, longer parental leave, and reasonably priced daycare. Consequently, they have established more equal work environments that enable women to fully engage in the economy.
In comparison, the UK ranks 27th out of 33 top economies with a female full-time employment rate of 68.9%, much below the OECD average of 78.1%. This implies that although the UK has made some progress towards enhancing gender equality in the workplace, its initiatives have not been as successful as those of other countries.
Furthermore, nations like Canada and Ireland have implemented policies meant to boost the number of women in the workforce. Improved assistance for working mothers, flexible scheduling, and campaigns to promote women in historically male-dominated fields are some examples of these policies. The UK’s declining standing in the rankings is partly due to its inability to execute comparable policies at the same rate.
What Are the UK's Main Obstacles?
The UK’s lacklustre development in female full-time employment, which trails several peer countries, is a serious cause for concern. According to the analysis, the UK has only managed to make slight progress towards gender equality since the epidemic, but nations like Canada and Ireland have achieved notable progress.
“The UK is closing the gender pay gap, but more slowly than other nations,” said Alia Qamar, an economist at PwC UK. While other comparable nations like Canada and Ireland have demonstrated remarkable improvements in the post-pandemic era, the UK’s performance is consistently only marginally better than the OECD average over the long run due to its slow progress relative to peers.
The unequal weight of caregiving obligations is one of the major obstacles to reducing the gender wage gap in the UK. Due to childcare and eldercare responsibilities, women are more likely than men to take professional interruptions or work part-time. It can be difficult for many women to return to full-time work or progress in their careers without improved support networks, such as flexible maternity leave and reasonably priced childcare.
Furthermore, there is still a persistent problem of gender segregation in the workplace. Technology, engineering, and finance are just a few of the high-paying fields where men still predominate. Progress has been modest despite efforts to encourage more women to pursue careers in STEM (science, technology, engineering, and mathematics). It will take focused efforts, like mentorship programs, scholarships, and laws that support inclusive hiring practices, to address this disparity.
Why Does Economic Growth Depend on Gender Equality in the Workplace?
According to PwC’s analysis, economic growth and female labour participation are directly correlated. The results demonstrate that increased gender equality boosts GDP growth and productivity in all OECD nations.
PwC UK Chief People Officer Phillippa O’Connor underlined: “Investing in gender equality isn’t just the right thing to do, it’s the smart thing to do,” given the favourable correlation between economic growth and workplace gender equality. In addition to improving economic diversity, lowering income inequality, and building a stronger general skills base, the advantages of having a larger and more varied workforce are directly translating into GDP increases.
Businesses gain from various viewpoints, which can spur more creativity and better decision-making when more women enter the workforce. It has been demonstrated that businesses with more gender-diverse leadership teams have higher employee satisfaction and better financial results. Additionally, reducing the gender wage gap might contribute to a more balanced economy by lowering total income inequality.
Furthermore, nations that place a high priority on workplace gender equality frequently see greater labour market flexibility, which strengthens their economies’ resistance to shocks. Ensuring women have equal access to employment opportunities and fair earnings will help maintain long-term economic stability in light of the world’s persistent financial difficulties.
How Can the UK's Ranking Be Improved?
The research emphasises how urgently initiatives that promote salary equity and increased employment for women are needed. Measures like improved childcare assistance, flexible work schedules, and focused efforts to reduce the gender pay gap, according to experts, could hasten progress. In comparison to its international rivals, the UK runs the risk of further stagnating in workplace gender equality if immediate action is not taken.
Stronger pay transparency regulations that mandate businesses to reveal salary data to detect and resolve wage inequalities are one way to solve the problem. Some nations, including Sweden and Germany, have already put such legislation into effect, which has raised awareness and accelerated efforts to close the gender pay gap.
Increasing parental leave regulations may potentially have a big impact. Both moms and dads are entitled to extensive parental leave in many nations with high rankings for workplace gender equality. Women can continue to work and grow in their jobs by avoiding taking on the majority of caregiving obligations and by promoting shared parental responsibilities.
Increasing the number of women in leadership positions is another crucial issue that needs to be improved. Companies with gender-diverse leadership teams typically have higher financial performance and more inclusive working climates, according to research. The number of women in senior positions can be raised with the aid of leadership development programs, mentorship programs, and focused recruitment initiatives.
Lastly, long-term growth requires tackling gender segregation in the workforce. Rebalancing representation in these areas can be achieved by promoting women’s entry into lucrative, male-dominated fields through industry collaborations, educational programs, and scholarships.
Even while the UK has made some strides towards gender equality in the workplace, more still needs to be done. The UK can attempt to reduce the gender wage gap and raise its standing in the Women in Work Index by enacting stricter laws and encouraging an inclusive culture. There is no denying the economic and social advantages of attaining gender parity in the workforce, which makes it an important goal.
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