Despite marginal improvements in closing the gap between men’s and women’s average earnings, the UK has been outpaced by other nations making faster progress. At the current rate of change, it could take more than 30 years to close the gender pay gap entirely.

The UK’s female full-time employment rate was found to be particularly low at 68.9%, placing it 27th out of 33 OECD economies and well below the OECD average of 78.1%. This decline in female workforce participation has significantly contributed to the UK’s slide in rankings.

Iceland, New Zealand, and Luxembourg continue to lead the index, performing strongly on gender pay parity and employment rates. Meanwhile, countries such as Ireland and Canada have made notable post-pandemic improvements, demonstrating that progress is possible with the right policies and investment.

Alia Qamar, an economist at PwC UK, said: “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.”

PwC’s research suggested it was vital that the UK improve women’s earnings as it found a correlation between increased female participation and productivity and GDP growth across OECD countries from 2011 to 2023.

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.”

Zoe Kelleher, Club Executive, London, for AND Digital, commented: “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% of women love working in tech, finding their careers rewarding, however, 90% have also been subject to gender bias, amplified by unequal pay. Coding, for example, is an area that has progressed for the better, seeing a rise in the number of female coders which has helped developers in general to be more rounded. While the gender balance is still off, it’s moving in the right direction in a field with so much potential.

“For the women driving innovation in the workplace, believe in yourself and your values. Find a person or group of people that will hold up a mirror, challenge you, support you and hold you accountable for pushing yourself forward. Continuing to push for greatness ensures women stand out and shatter the barriers that stand in the way.”

Sheila Flavell CBE, Chief Operating Officer for FDM Group, commented: “For all of the talk and attention, seeing ‘sluggish’ progress towards closing the gender pay gap underscores that the UK is still a long way off when it comes to equality in the workplace. While efforts have improved somewhat, this is still particularly true within 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.”

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