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.