OECD countries will not close the gender pay gap for at least 50 years if we continue at the current pace of progress, despite the potential economic gains, writes Ger McDonough
To mark International Women’s Day, PwC released the results of our Women in Work Index, assessing women’s employment outcomes across 33 Organisation for Economic Cooperation and Development (OECD) countries.
The Women in Work (WIW) Index shows that female workforce participation across the 33 OECD countries increased slightly in 2021. Progress towards gender equality remains too slow, however.
In fact, based on OECD countries’ gender pay gap of 14 percent in 2021 and historical rates of progress towards gender pay equality, our findings show that it will take more than 50 years to close the gender pay gap.
This means that a 20-year old woman entering the workforce today will not see pay equality in her working lifetime.
At the same time, our analysis also shows that, by closing the gender pay gap, OECD countries could make trillion-dollar gains.
By increasing women’s average wages to match those of their male counterparts across the OECD, female earnings would rise by more than US$2 trillion per annum, our research has found.
In Ireland, closing the gender pay gap could boost women’s earnings by US$4.32 billion per annum (8%) and increasing women’s employment could boost Irish GDP by US$50 billion per annum or nine percent.
Ireland ranks in 12th place overall out of the 33 OECD countries in our latest WIW Index, up from 15th place in the year prior. This improvement was in large part due to a rise in the female labour participation rate from 65.6 percent to 69.6 percent.
Our research also reveals that just 25 percent of women in Ireland have an established plan to advance their career with their current employer, however, compared to 35 percent of women globally.
If the rebound from the COVID-19 pandemic has taught us anything, it is that we can’t rely on economic growth alone to produce gender equality—unless we want to wait another 50 years or more.
Employers can make a material improvement to women's empowerment in the workplace now by focusing on fair reward, autonomy, inclusive leadership and instituting a data-driven diversity strategy.
Women working full-time in person have the lowest empowerment score in our WIW Index. This trend follows suit for men—suggesting that autonomy over how, where and when people work fuels feelings of empowerment across the workforce.
According to our WIW Index, the women who are most empowered also have greater opportunity to work remotely (74%). However, close to half (48%) of women can’t do their job remotely.
Of the 11,285 women who can, 29 percent are working remotely full-time, and 56 percent had some level of hybrid work pattern.
Autonomy fuels empowerment for both women and men, but women currently have less autonomy over how, when and where they work.
Demand for flexibility is a talent-wide proposition, and one that cannot be ignored by employers as they seek to enhance diversity, fuel engagement and innovation, and position themselves as an employer of choice.
Ger McDonough is Partner and Leader of the People and Organisation Consulting Practice at PwC Ireland
LOADING...