According to research published by the World Economic Forum, July 2022, the global gender pay gap has been closed by 68.1%, but it will take 132 years at the current rate of progress to reach full parity. While there has been a year on year improvement, it also highlights the ‘generational loss’ which occurred between 2020 and 2021, when trends leading up to 2020 showed the gender gap was set to close within 100 years.
Across the 146 countries covered by the report, no single country has achieved full gender parity, the closest is Iceland at 90.8% and the UK currently ranks 22nd at 78%.
The report also highlights the longer term impact this has had on women’s wealth accumulation when calculated over a lifetime. “There is still unequal access and control over wealth-building resources such as banking, investment, inheritance, and property which can contribute to the wealth divide. The most salient factors contributing to this gender-based wealth inequity are gender pay gaps, unequal career progression trajectories, gender gaps in financial literacy and life events.”
Other factors don’t help the situation. The high cost of childcare here in England and additional caring responsibilities means that many women returning to work after having children are more likely to see the pay-gap widen, often due to women returning to work in a part-time capacity, and subsequently missing out on potential promotions.
How Employers Can Address The Gender Pay Gap
One way employers could help address this more quickly is to place more emphasis on offering quality part-time jobs, allowing parents to work from home (or providing a child-friendly workplace), or indeed giving women higher pay-rises.
Other suggestions include longer paternity leave and increased government subsidised childcare from the end of parental leave. Currently if you live in England, your child is aged 3-4 and you don’t earn more than £100,000, parents can get 30 hours free childcare each week, with an approved childcare provider, which stops when the child starts in reception class.
With all this in mind, focusing on your lifetime wealth accumulation is clearly important for women, something we should be teaching our daughters. Don’t neglect your longer term financial goals. We can help you on any point in your journey and it is never too late to start. To discuss your financial goals and objectives, get in touch today.
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