Since 2020, the UK has plummeted from 10th place in PwC’s Women in Work Index to rank 18th among OECD countries.
Top performing countries on gender progress include Iceland, New Zealand and Luxembourg.
The PwC ranking of G7 countries also showed that Canada is now top for workplace equality pushing the UK into second place.
Progress has been made in the UK, with PwC reporting that the gender pay gap has narrowed slightly and that the country has high female participation in the workforce.
But the report said the UK’s overall ranking fell because unemployment has increased and the gender participation gap has widened. Interestingly, Scotland is the UK’s top performing region for the second year in a row.
At the current rate, it will take the UK 33 years to close the gender pay gap.
GDP gains
Progress on female participation in work between 2011 and 2023 has brought returns. Productivity, measured by GDP per hour worked, has grown. The report said that this equates to a rise in UK GDP of 0.3 percent a year, resulting in a total annual GDP increase of £6.2bn (US$7.8bn).
Phillippa O’Connor, chief people officer at PwC UK, said: “The positive link between gender equality in the workplace and economic growth shows that investing in gender equality isn’t just the right thing to do, it’s the smart thing to do.
“The benefits of a larger and more diverse workforce are translating directly into GDP gains, as well as enriching economic diversity, reducing income inequality, and providing a stronger overall skills base.
“As our research shows, increasing the workplace participation rates of women has the potential to significantly boost the UK economy and help solve the productivity puzzle – providing a valuable pathway to achieving sustainable growth.”
PwC UK economist Alia Qamar added that while a fall in rank is “never good news”, it doesn’t provide the whole story.
“The UK is improving its gender pay disparity, but at a slower pace than other countries.
“The sluggish progress compared to peers means long term the UK’s performance is consistently only just ahead of the OECD average, whereas other similar countries such as Ireland and Canada have shown impressive improvements in the post-pandemic era.”
Commenting on the report findings, Sheila Flavell, chief operating officer for FDM Group, said that much more work was needed to address gender gaps in the technology sector.
“Fair pay, workplace training and progression opportunities for women should be a given in the modern workplace, and organisations must prioritise action in these areas, creating an environment that encourages women into the tech sector and provides fulfilling careers.
“As areas such as data and analytics continue to become integral in business operations, women should be front and centre of innovation, supporting UK growth, rather than being held back by a lack of progress and a stubborn gender pay gap.”
Zoe Kelleher, club executive, London, for AND Digital, said: “It’s sad to see the UK falling behind in gender pay gap rankings, showcasing the dual reality that women face in the workplace, particularly in the tech sector.
“Research shows that 90 percent of women love working in tech, finding their careers rewarding, however, 90 percent have also been subject to gender bias, amplified by unequal pay.”
Kelleher added that coding, for example, is an area that has progressed for the better, with a rise in the number of female coders. This has helped developers in general to be more rounded, she said. “While the gender balance is still off, it’s moving in the right direction in a field with so much potential.”
