Bridging the Divide: An In-Depth Look at the UK’s Persistent Gender Pay Gap in 2022 and 2023

The gender pay gap in the United Kingdom has long been a topic of concern and debate. In April 2023, new data from the Annual Survey of Hours and Earnings (ASHE) shed light on the current state of the pay gap. While women’s median weekly earnings saw a remarkable increase of 9.1%, from £450 to £491, men’s average earnings only rose by 6.8%, from £623 to £666.

Growth in women’s earnings

It is encouraging to see a significant growth in women’s earnings. This increase may be attributed to various factors, including improved representation in higher-paying roles and increased focus on pay equity. Women have been able to make strides in closing the earnings gap, but there is still work to be done. Despite these positive developments, the gender pay gap remained relatively unchanged during this period.

Unchanged gender pay gap

The data from ASHE indicates that, although individual earnings for women are improving, the overall gender pay gap has not significantly narrowed. The median gross hourly earnings pay gap among full-time employees increased slightly to 7.7%, up from 7.6% in 2022. This indicates that, while progress is being made, there are continued disparities in pay between men and women across various industries.

Full-time employment disparity

One factor that contributes to the gender pay gap is the disparity in full-time employment rates between men and women. Approximately 86% of male employees were in full-time jobs, compared to only 61% of female employees. This discrepancy highlights the need to address factors such as societal expectations, caregiving responsibilities, and workplace culture that may hinder women’s ability to secure and maintain full-time positions, resulting in limited earning potential.

Age group analysis

To gain a clearer understanding of the pay gap, it is essential to analyze data across different age groups. ASHE data reveals that for employees under 40 years old, the pay gap is relatively small at 4.7%. However, as individuals age, the pay gap widens significantly. For those aged 40 to 49 years, the pay gap increases to 10.3%, and for those aged 60 and over, it rises to 14.2%. This age-based disparity raises questions about the impact of career progression, potential wage stagnation, and bias on the overall pay gap.

Lack of effective action

Dr. Zara Nanu, Director of Fair Future of Work Strategy at XpertHR, has expressed concern about the lack of sufficient action to tackle the gender pay gap. Despite the progress made by some organizations, more needs to be done across the board. While it is encouraging to see the efforts of companies like Greggs, who have reduced their hourly median pay gap by 15 percentage points to 2.8%, these examples highlight the need for widespread and sustained action.

Call for government intervention

The Trades Union Congress (TUC) echoes the need for stronger government action to hold employers accountable for their pay gaps. TUC General Secretary, Paul Nowak, emphasizes that bolder measures are necessary to ensure progress in achieving pay equality. Legislative reforms and regulatory measures can play a vital role in fostering greater transparency and accountability among employers, thereby reducing the gender pay gap.

Sector-based progress

While the overall gender pay gap has remained relatively steady, there have been notable decreases within specific sectors. Skilled trade occupations, for instance, experienced the largest fall in the gender pay gap, from 18.3% in 2022 to 15% in 2023. This progress highlights the importance of targeted interventions and industry-specific initiatives to address and rectify pay disparities.

The gender pay gap in the UK persists despite positive developments in women’s earnings. While it is encouraging to see women’s median weekly earnings rise, it is essential to acknowledge that the overall gender pay gap remains largely unchanged. Efforts to reduce the gap must address the imbalance in full-time employment rates, consider the impact of age on earnings, and ensure that organizations and governments commit to meaningful action. By continuing to prioritize pay equity and challenging systemic biases, there is hope for a future where gender no longer determines an individual’s earning potential.

Explore more

Creating Gen Z-Friendly Workplaces for Engagement and Retention

The modern workplace is evolving at an unprecedented pace, driven significantly by the aspirations and values of Generation Z. Born into a world rich with digital technology, these individuals have developed unique expectations for their professional environments, diverging significantly from those of previous generations. As this cohort continues to enter the workforce in increasing numbers, companies are faced with the

Unbossing: Navigating Risks of Flat Organizational Structures

The tech industry is abuzz with the trend of unbossing, where companies adopt flat organizational structures to boost innovation. This shift entails minimizing management layers to increase efficiency, a strategy pursued by major players like Meta, Salesforce, and Microsoft. While this methodology promises agility and empowerment, it also brings a significant risk: the potential disengagement of employees. Managerial engagement has

How Is AI Changing the Hiring Process?

As digital demand intensifies in today’s job market, countless candidates find themselves trapped in a cycle of applying to jobs without ever hearing back. This frustration often stems from AI-powered recruitment systems that automatically filter out résumés before they reach human recruiters. These automated processes, known as Applicant Tracking Systems (ATS), utilize keyword matching to determine candidate eligibility. However, this

Accor’s Digital Shift: AI-Driven Hospitality Innovation

In an era where technological integration is rapidly transforming industries, Accor has embarked on a significant digital transformation under the guidance of Alix Boulnois, the Chief Commercial, Digital, and Tech Officer. This transformation is not only redefining the hospitality landscape but also setting new benchmarks in how guest experiences, operational efficiencies, and loyalty frameworks are managed. Accor’s approach involves a

CAF Advances with SAP S/4HANA Cloud for Sustainable Growth

CAF, a leader in urban rail and bus systems, is undergoing a significant digital transformation by migrating to SAP S/4HANA Cloud Private Edition. This move marks a defining point for the company as it shifts from an on-premises customized environment to a standardized, cloud-based framework. Strategically positioned in Beasain, Spain, CAF has successfully woven SAP solutions into its core business