The latest edition of PwC’s Women in Work Index measures how much progress has been made towards gender equality in the workplace, across 33 of the member countries within the Organisation for Economic Co-operation and Development (OECD).
To give you an indicator of who these members are, to become a member of the OECD, a country must demonstrate a readiness and commitment to democratic societies, rule of law, human rights, and transparent, free-market economies.
It would be a safe assumption that these countries would likely foster a positive environment for gender equity to flourish, or so you’d think. This is why PwC’s annual analysis is so crucial to understanding what change needs to happen to achieve gender equality in the workplace.
Encouragingly this year’s report shows real progress, with a rising tide lifting most boats, but for the UK, that tide is slowing, and in some areas, even receding. Let’s unpack why, despite improving in some key areas, the UK has dropped to 18th in the Index, its lowest rank in over a decade.
Progress Made, But Momentum Lost
Since 2011, the UK has outperformed the OECD and G7 averages overall, improving by 14.5 points vs the OECD’s 12.7. But while other countries have accelerated post-COVID, the UK’s pace has faltered. From 2020 to 2023, our Index score decreased slightly, while the OECD’s rose by 4.6 points.
This is a red flag. We’ve gone from leading the G7 to trailing behind Canada, and our rank fell from 17th to 18th globally, not due to decline, but because others are catching up faster.
The root causes of the issue of gender equity are complex, but here are the three key areas that if business leaders could identify and positively change, it could help them embed equity into the DNA of their organisations.
The Impact Of The Gender Pay Gap
The UK’s gender pay gap narrowed from 14.5% to 13.3% in 2023, which is good and still above the OECD average of 13.1%. We’ve reduced the gap by nearly 5p/person since 2011, faster than the OECD, but at this pace, we’re 33 years away from pay parity.
This isn’t just a moral issue, it’s an economic one. Pay inequality contributes to reduced engagement, retention challenges, and limits the full utilisation of female talent in the economy.
Labour force participation
The UK has a high female labour force participation rate, of 74.8%, and low female unemployment of 3.5%, both better than the OECD average. But while others moved ahead, we saw a post-pandemic decline in female participation.
Notably, the participation rate gap between men and women in the UK widened from 7.1% to 7.8% in 2023 against the trend. Our female full-time employment rate is also worryingly low (27th out of 33).
The ‘Motherhood Penalty’
Participation gaps are still the largest in the UK during peak childbearing years: 25–34 (8.2%) and 35 – 44 (10.8%).
This mirrors the ‘motherhood penalty’, a systemic issue impacting women’s long-term economic potential. Without accessible childcare, flexible work, and cultural change, we’ll keep seeing women scale back at exactly the moment their careers should be accelerating.
What’s the regional forecast?
There are bright spots. Scotland topped the UK’s regional index again, thanks to the lowest gender pay gap (down to 8.3%) and smallest participation rate gap. The North East made the biggest jump, improving across all indicators.
But overall, regional inequality is widening. Economic slowdown, uneven impacts from the Levelling Up agenda, and devolved policy differences are all at play here.
Gender equity fuels growth
PwC’s analysis draws a clear link between female participation and productivity. By eliminating participation disparities could boost OECD GDP by 9.2% by 2060.
Fundamentally, in a post-Brexit, post-pandemic UK, still battling sluggish productivity, we cannot afford to leave this value on the table. More inclusive labour markets aren’t just fairer, they’re smarter.
In summary
The UK has done a lot right, but others are moving faster. Without bold, focused policy changes, we risk stagnation. We need a reset on how we support working women, especially during caregiving years, and a regional approach that lifts up underperforming areas.
All too often gender equality is framed as a side issue when in fact, it’s a productivity strategy, an innovation strategy, and an economic growth strategy.
This isn’t about quick wins. It’s about sustainable change, starting with how we lead.
