How has the gender pay gap changed: what the statistics tell us

Each year, Close the Gap produces a report on the gender pay gap in Scotland. The purpose of this report is to outline and analyse the key trends in the gender pay gap across various measures to show how it has changed over time. We’re now going to be producing this report on a biennial basis and in between we’ll be bringing you blogs on how pay gap data is changing. This is the first of two blogs that will look at the most recent pay gap data from 2023 and, as always, we set out why it’s important to look beneath the headline figures.

Median and mean gender pay gaps have narrowed, but this hides the extent of gendered labour market inequalities

Recent data from the ONS’s Annual Survey of Hours and Earnings (ASHE) indicates that both the median and mean gender pay gaps have decreased between 2022 and 2023 across all measures. The mean pay gaps have had a slightly larger reduction compared to median pay gaps, where falls have been more varied. As shown in table 1 below, the mean pay gaps have all seen significant decreases by around 4 percentage points, with the combined pay gap now sitting at 6.3%, the full-time gap at 3.5%, and the part-time at 22.1%.

 

 

Median pay gap (%)

Mean pay gap (%)

 

2020

2021

2022

2023

2020

2021

2022

2023

Combined pay gap

10.9

11.5

12.0

8.7

10.4

10.1

10.9

6.3

% change from previous year

-

+0.6

+0.5

-3.3

-

-0.3

+0.8

-4.6

Full-time pay gap

3.0

3.6

3.7

1.7

7.5

6.6

7.9

3.5

% change from previous year

-

+0.6

+0.1

-2.0

-

-0.9

+1.3

-4.4

Part-time pay gap

24.4

32.4

29.2

28.1

29.7

26.9

26.3

22.1

% change from previous year

-

+8.0

-3.2

-1.1

-

-2.8

-0.6

-4.2

Table 1: Combined, full-time and part-time median and mean gender pay gaps, 2020-2023

 

Reductions in the mean and median part-time pay gaps follow established trends from previous years. However, median and mean combined and full-time pay gaps have broken with trends and have begun to narrow. Given how large the decreases in the mean and median combined and full-time, and mean part-time gender pay gaps, it is important to treat them with some caution.

Scottish Government has highlighted that the full-time median figure of 1.7% means that Scotland’s gender pay gap is its “lowest on record”. However, a focus on the full-time figure excludes the 487,600 women who work part-time, most of whom are in low-paid, undervalued jobs and represent 38.3% of the female workforce. All too often, discourses on the pay gap centre on the need to get more women into senior roles. Equally as important is action to tackle women’s low pay, and the economy-wide undervaluation of ‘women’s work’ such as care, admin, and cleaning. Relying on the headline full-time figure creates an inaccurate picture of the gender pay gap and hides the persistent and pervasive inequalities women face.  

Pay gaps are narrowing in most occupational groups

The new data shows a continued trend in the narrowing of the pay gap across most occupational groups. For example, when considering the combined pay gap:

• There has been a significant reduction in the gender pay gap in professional occupations from 11.1% in 2022 to 2.3% in 2023;
• In caring, leisure and other service occupations the gap has decreased from 5% to -2.7%, indicating women have a pay advantage in this occupational grouping;
• In administrative and secretarial occupations the gap has narrowed from 10.1% to 7.5%; and
• There has been a less pronounced narrowing within managers, directors, and senior officials, from 14.5% in 2022 to 13.8% in 2023.

Pay gaps are affected by the composition of men and women within each of these occupational groups. Because more women work in caring, leisure, and other service occupations, pay gaps tend to be much narrower than in managers, directors, and senior officials’ occupations, where women are under-represented and there is a smaller decrease in pay gap figures.

Women's pay is rising faster than men's

The new data shows that the biggest influencer of changes in the pay gap is that women’s average (mean) hourly wages are increasing faster than men’s. Table 2 shows that women’s hourly combined, full-time, and part-time wages have increased almost twice as quickly as men’s between 2022 and 2023, although men continue to have higher average hourly earnings. It is likely that this is a result of recent public sector pay settlements, which were higher than usual following waves of industrial action by trade unions in response to the cost-of-living crisis. Since women make up the majority (66%) of public sector workers, and the majority of trade union members, they have disproportionately benefited from wage increases, and this has led to their pay rising faster than men’s. For example, high-profile strike action over the last year, including the EIS teachers’ strikes throughout 2023 which resulted in a cumulative 14.6% pay increase for teaching staff, have been instrumental in securing pay increases for public sector workers. Without the collective bargaining power and support from trade unions it is unlikely these wage increases would have been secured. This aligns with existing evidence on the pay gap which shows that union membership contributes to higher pay for women. This increase in public sector wages underpins much of the recent narrowing presented in this year’s pay gap data, particularly in the public sector.

 

 

Mean (£)

 

 

2022

2023

% change

Male (overall)

19.28

20.77

+7.7%

Female (overall)

17.16

19.46

+13.4%

Male full-time

19.70

21.20

+7.6%

Female full-time

18.10

20.45

+13%

Male part-time

14.09

15.02

+6.6%

Female part-time

14.52

16.51

+13.7%

Table 2: mean hourly pay by gender, 2022 and 2023

 

As shown in table 3, gender pay gaps have narrowed across the public, private, and third sector, with the public sector exhibiting the most substantial reduction between 2022 and 2023. The third sector has also seen a substantial narrowing in its combined and full-time pay gaps. This is also likely to be a driving force behind the overall narrowing of the gender pay gap, as women make up the majority of staff in this sector. Increases in third and private sector pay appears to be partially driven by employer responses to the cost-of-living crisis, such as increases to wages and the introduction of bonuses or allowances to help cover cost increases.

 

 

Combined gender pay gap

Full-time gender pay gap

Part-time gender pay gap

 

2022

2023

2022

2023

2022

2023

Public

12.5%

4.7%

9.5%

1.7%

27.3%

18.5%

Private

15.9%

15.4%

11.5%

12.5%

32.5%

31.7%

Third sector

17.7%

11.5%

17.2%

10.1%

26.1%

24.5%

Table 3: Gender pay gaps in the public, private and third sector

 

It’s important to note that although women’s pay is rising faster than men’s, on average men are still earning more than women. Women continue to make up the majority of low-paid staff, comprising 60% of workers earning below the real living wage and are more likely to be in insecure work. These issues are particularly acute for racially-minoritised women, disabled women, and single parents (more than 90% of whom are women). It is therefore important to recognise that although headline pay gap statistics may suggest progress, women continue to face stubborn labour market inequalities.

Women do not experience the gender pay gap in the same way

Women are not a homogenous group, and their experiences of the labour market are shaped by their multiple, intersecting identities, which often compound and contribute to the inequalities they face. For example, disabled women and some groups of racially-minoritised women are more likely to be underemployed in terms of skills, and face higher pay gaps. Disabled women, racially-minoritised women, and LBT women are also more likely to experience workplace discrimination, harassment, and bullying.

Headline pay gap figures do not fully capture these divergent experiences, and therefore may create a picture of the gender pay gap that does not reflect the lived reality of women who are most marginalised. There is currently a distinct lack of intersectional gender pay gap data available for Scotland. However, UK-level data from the TUC shows a 9.8% gender pay gap for disabled women compared to non-disabled women, a 23% pay gap when compared to non-disabled men, and a 9.9% pay gap when compare to disabled men. This highlights the continued disadvantage disabled women face in the labour market, and their lower earnings.

UK-level data also provides insight into pay gaps for ethnic-minority women. This shows that, when compared to White British women, median hourly pay gaps are widest for Bangladeshi-British women (14.7%), Pakistani-British women (11.7%), and Mixed White and Black Caribbean women (10.6%). It is important to note that some racially-minoritised women have a pay advantage in median hourly pay compared to White British women, including White Irish women (37.7% pay advantage), Chinese-British women (35.1% pay advantage) and Indian-British women (16% pay advantage).

However, disabled women and some racially-minoritised women are on the whole more likely to be in precarious, low-paid work. Considering both the legacy of Covid-19 job disruption and on-going cost-of-living crisis are disproportionately impacting racially-minoritised women and disabled women, the stubbornly wide pay gaps they face are likely to put them under increasing financial pressure, with many pushed into further and deeper poverty.

Looking at combined gender pay gaps by age groups shows a continued trend of this gap narrowing slightly, with the exception of the pay gap for 18–21-yearolds, which has increased by 8.3%. The data highlights that gender pay gaps are widest for women over the age of 40, and narrowest for those in the 22–29-year-old age group. The widening of the gender pay gap after the age of 30 is driven by a range of factors including gender segregation in subject choice and occupational segregation, women’s concentration in low-paid and part-time work, women’s under-representation in senior management, and inflexible working practices that particularly disadvantage women in caring roles. Additionally, the higher-than-average pay gap present for women aged over 40 is largely due to the motherhood penalty, whereby women returning to work after having children find it difficult to balance caring and earning, often resulting in them moving into part-time work that is below their skill level.

Why it's important to remain cautious about headline figures

It is evident that the picture painted by the headline gender pay gap figures and the reality of women’s lives are quite different. Although the gender pay gap continues to narrow across multiple measures progress is slow and uneven, with different groups of women facing wider pay gaps and further labour market disadvantages due to intersecting and compounding inequalities. Despite the narrowing pay gap, women continue to make up the majority of low-paid and part-time workers, are in increasingly precarious work, and female-dominated sectors continue to be undervalued. Therefore, whilst headline figures can provide some high-level insight into changes in the gender pay gap over time, it’s important they are not taken as the only indicator of gender inequality in the labour market.

Are you ready for the new flexible working regulations?

On 6 April 2024 the updated flexible working regulations come into effect. As an employer, it’s vital that you’re ready for the changes.

As working practice evolves, and with the introduction of employees being able to request flexible working from day one of their employment, it’s time to ensure that your organisation is prepared to support new and existing employees when it comes to working flexibly.

Here we’ll explain what you need to do to adhere to the new regulations. Alongside this we’ll unpick some of the barriers to flexible working, highlight good practice, and set out how to reap the benefits of a flexible workplace.

What’s changed?

The changes to flexible working regulations are:

• All employees will now be able to make two requests in any 12-month period.
• Employers are now required to deal with requests within two months of receiving the request.
• The employee no longer has to set out or justify the impact of their proposed flexible working arrangement.
• Before rejecting a flexible working request, the employer must consult with the employee. If the request is refused the employee can still appeal the decision.

These changes present an excellent opportunity to refresh your current practice, and improve your approach to flexible working. Here’s how.

Dealing with requests: How to get flexible working right

Update your flexible working policy

With the new flexible working regulations now in place, it’s important to ensure that your flexible working policy reflects these changes. Any accompanying guidance should also be updated.

This will help ensure managers are made aware of the latest changes and can respond effectively to new requests. Staff should be also informed of the updated policy and know where to access this. This will provide greater understanding of the process of how to submit a request, and how this should be handled. It’s good practice to regularly review your policies and check where they can be improved.

Engage senior leaders to show your commitment to flexible working

Senior leaders are key to encouraging flexible working in your organisation and fostering an inclusive workplace culture where it can thrive. With strong messaging and visible leadership about your organisation’s commitment to flexible working you can gain and retain talent, improve your business, and advance gender equality in your workplace. Leaders can do this by making a statement to staff about the use of flexible working and its benefits, ensuring employees are aware of how flexible working is done and can be used in your organisation.

Support your line managers to manage flexible working in their teams

Line managers are often the gatekeepers to flexible work. If they’re hesitant or resistant to this can discourage employees from submitting a request. They might assume that frontline workers or particular roles can’t work flexibly. Some line managers might never have managed flexible working before. This can lead to inconsistency in access to flexible work in your organisation. Where requests aren’t handled fairly, this creates unnecessary barriers.

No jobs should be automatically ruled out for flexible working and your flexible working policy should make this clear. Many businesses successfully have senior posts operating on a job-share or part-time basis, and it’s helpful to assume that all jobs can be done flexibly unless there are very clear business reasons why not. Data shows 63% of frontline workers are already working flexibly, showing this is a possibility for roles that are assumed to be more challenging to accommodate. By ensuring line managers are confident in dealing with requests and managing flexible working in their teams, you can make flexible working work for your employees and your organisation.

Trial new flexible working arrangements

With the many types of flexible working, it’s understandable that you may be unsure of what will work in your organisation. Trialling a new flexible working pattern is an easy way of finding out what works well for staff, for teams, and for the organisation. You can work with the employee to agree the length of the trial period and how you’ll evaluate the suitability of the new pattern.

Talk about flexible working from the outset

Another action that will support flexible working includes advertising all jobs as being considered for part-time and/or flexible working. Mentioning the availability of flexible working in adverts will help you attract applicants from a wider talent pool. Recent research shows that 60% of employers have said that flexible working has improved the quality and quantity of candidates. Talking about flexible working during interviews will let candidates know they are able to ask for it if they need it, making it easier to fill vacancies. Discussions on flexible working needs should also form a key part of inductions for new staff.

Ask your staff about their experiences

Looking at how flexible working is used in your organisation will help you understand what works, and what could be improved. The best way to do this is by gathering staff perspectives on their experiences, for example via a staff survey. You can also look at your HR data to identify who is more likely to request flexible working and/or to have their request approved. This will help identify if there are barriers in particular teams, or for particular groups of staff, enabling you to make targeted improvements.

Raise awareness of how employees already work flexibly

Some staff may not be aware that they’re able to work flexibly or don’t know how to approach the topic with their manager. By raising awareness of how flexible working is already used in your organisation you will show your employees that you’re open to flexible working, and encourage them to ask for it if they need to.

Share profiles of employees on different working patterns at different levels, for example senior leaders who work part-time, or teams where managers allow staff to vary start and finish times to enable them to manage childcare. Use a variety of staff communication methods to help reach all employees within your organisation.

By taking these actions, you can build a positive working culture around flexible working which means the new changes to the flexible working regulations will feel easier to manage.

Why women need flexible working

Flexible working is good for your organisation, but it’s also an essential for women’s workplace equality. Many of the causes of the gender pay gap are driven by women’s greater responsibility for unpaid care and the difficulties they still face in combining this with work, especially good quality work.

Women make up the majority of part-time workers. Part-time work is typically concentrated in lower-paid roles and in stereotypically female work, such as care work or admin. Because women often use part-time work to enable them to manage childcare this means they can end up trapped in work that’s below their skill level, seeing their talents wasted.

Where flexible or part-time working isn’t seen at senior levels, this reinforces the idea that caring roles are incompatible with progression. This means you can’t be sure you have the right person for the role, and it’s likely that you’re not making the most of your talent.

Flexible working can also support women’s particular health needs, for example enabling them work flexibly to manage symptoms associated with menopause or menstruation that can impact on their ability to work well.

Recognising the positive impact flexible working can make for women in the workplace can help encourage buy-in from senior leaders and line managers, and contribute to work to closing your gender pay gap. Taking a best practice approach will help you realise the benefits of a flexible workforce, both for your organisation and for your employees.

Helpful resources and further steps you can take

At Close the Gap, we offer a range of tools and resources to help support you to build good flexible working practice.

Our Close Your Pay Gap tool is useful for large employers who are publishing their gender pay gap and want to determine the key factors behind it. It uses your pay gap data, along with your answers to a short set of questions, to produce a personalised report and action plan for your company.

For SMEs our Think Business, Think Equality toolkit will support you to realise the benefits of equality and diversity in your business and to improve your employment practice. Here you can receive tailored feedback to improve your flexible working practice alongside other key areas.

Our Equally Safe at Work accreditation programme is designed to support employers in the public and third sectors. It provides employers with direct support to advance gender equality and tackle violence against women, through improving working practice across six key standards, including flexible working. To find out more, visit our website www.equallysafeatwork.scot

IWD 2024: Menopause is a health issue, and a workplace issue

Every year the International Women’s Day theme aims to highlight the ways in which gender inequality is still evident in society, and what needs to happen to address that. This year’s theme is 'Inspire Inclusion'.

Inclusive workplaces can help to advance women’s workplace equality, but there are still many ways in which workplace culture doesn’t feel inclusive to women. A clear example of this can be seen in working women’s experiences of menopause.

Stigma and stereotypes at work

Menopause is a normal part of women’s lives, but there’s still widespread discomfort around it, particularly at work. Many women don’t feel comfortable talking about it because of stigma and stereotypes. When managers and colleagues avoid the subject, it makes it even harder for women to get the support they need.

But menopause is a workplace issue. A quarter of women are likely to experience difficulties associated with menopausal symptoms at work. Workplaces that don’t recognise the impact of menopause on employees can make things even harder. Women who take sick leave because of their symptoms can be penalised by absence management processes. Where an employee isn’t allowed to take regular breaks, or can’t access bathroom facilities easily, they’ll find it harder to deal with heavy bleeds. Line managers may unfairly refuse a flexible working request that could have made it easier for an employee to manage their symptoms.

Without support, employees experiencing menopause may feel compelled to reduce their hours, or even leave their job altogether. Where workplace support isn’t available, this sends a message to women that they aren’t valued, and their wellbeing isn’t taken seriously.

How employers can create inclusive, menopause-aware workplaces

Menopause is a health issue, and legitimate reason to need support in the workplace. Employers have a key role to play in ensuring women can access the support they need. By making small adjustments to policy and practice, employers can make a real difference to the lives of employees who are experiencing menopause.

Close the Gap has created a resource for employers that sets out how to build a menopause-aware workplace. This includes increasing awareness of menopause and how it impacts women, creating a package of workplace support measures, and introducing a menopause policy to help line managers feel confident providing support.

Increasing awareness of menopause and how it impacts women in the workplace is key to ensure women are able to access the support they need. This includes building understanding among employees more generally, alongside targeted information for key people who will be providing support in the workplace, e.g. line managers and HR advisers.

Employers can create a tailored package of support measures that women experiencing menopause are able to access in their workplace. This can include menopause-sensitive absence management processes, access to free period products including specific products for heavy flow, regular breaks, and simple adjustments like providing a desk fan or moving an employee’s working location to a cooler spot.

Having a specific policy on menopause will help encourage women to ask for support and provide key people with the information they need to provide it. Line managers have a particularly important role - the ‘supervisor effect’ has a big influence on women’s experience of work, how comfortable they feel asking for support, and what support they get. Employers need to make sure line managers are confident providing support and know what’s expected of them.

Creating menopause-aware workplaces will help employers to advance gender equality in their wider workplace. That’s good for women, good for employers, and good for Scotland’s economy.

Women pay the price of gender inequality and poverty

The 16 days of activism against gender-based violence gives focus to the continued need for action to eradicate violence against women (VAW). VAW occurs at epidemic levels with one in three women affected globally. In Scotland, one in four women experience domestic abuse in their lifetime, and 70% of women report that they’ve experienced or witnessed sexual harassment at work.

VAW is not often seen as a workplace issue, despite it affecting all aspects of women’s lives. Perpetrators of domestic abuse use a range of tactics to disrupt women’s employment as a way to coerce and control. This can include using workplace resources such as phone and email to threaten, harass or abuse them. Other tactics can include destroying work clothes and personal documents which may prevent them from applying for jobs in the first place. In addition, we know that the cost of childcare is prohibitive for many women, and so the reliance upon abusers to provide childcare which is then deliberately withdrawn is damaging to women’s wellbeing, their ability to do their job, and ultimately their career prospects.

There is a critical link between VAW and poverty, with financial dependency and poverty being primary risk factors for victim-survivors, making it difficult to leave abusive relationships. We know that VAW is both a cause and consequence of gender inequality, and that women’s poverty is intrinsically linked to this and sustains these ingrained inequalities faced by women. This is why it is essential to address women’s labour market inequality and tackle women’s poverty to prevent violence against women.

The link between violence against women and women’s labour market inequality

Women’s labour market and economic inequality reduces their financial independence, restricts their choices in employment and creates a conducive context for VAW. Living in poverty can also make it harder for women experiencing violence or abuse to move on and maintain employment.

Women are not a homogenous group and their experiences of men’s violence and also workplace inequality, are shaped by the intersecting and compounding inequalities they face. For example, socioeconomic background has an influence on women’s labour market outcomes, with women from lower socioeconomic backgrounds being less likely to be represented in higher paid jobs, and more likely to be in lower-paid, stereotypically female, work such as care and cleaning. This drives the higher level of female poverty which diminishes women’s options in the face of violence and abuse.

In tackling women’s poverty, women’s labour market inequality, and wider gender inequality, it’s vital to understand that barriers to paid employment are costly to women’s safety. Employment itself is not necessarily a guaranteed route out of poverty either, due to the low levels of pay and the prevalence of zero-hour contracts that are associated with ‘women’s work’. Women are significantly more likely to be employed on zero-hour contracts than men, with this figure growing sharply in the last decade. Moreover, it is not just the insecure nature of these jobs that are a threat to women’s long-term financial stability and overall safety, but zero-hour contracts are notoriously characterised by low pay, with just 40% of employees on zero-contracts having an hourly earnings that matched (or higher than) the 2021 Living Wage. The financial instability due to these precarious contracts can limit women’s choices when facing violence and abuse. Addressing women’s labour market inequality is therefore a necessary step in ending violence against women.

The gendered nature of poverty and its link to violence against women

There is no escaping that poverty is gendered in Scotland. Women are more likely to be living in poverty than men, with a disproportionate number of women, particularly single mothers living in poverty. Women in Scotland who are on low incomes are more likely to be impacted by the cost of living crisis, especially with deepening poverty and facing hardship including hunger, going without essential items, and inability to afford to heat their homes.

Moreover, it has been acknowledged also that worsening debt is connected to the gendered cycle of violence, with debt being linked to experiences of domestic abuse. Poverty itself is associated with domestic abuse as both a cause and a consequence of violence against women which is why it is relevant in understanding the connection between poverty and gender inequality.

While financial abuse and economic abuse are often used interchangeably, the difference is that economic abuse consists of the many different ways an abuser may control someone’s economic situation, extending to the restriction of accessing food, transport, employment, and housing. Financial abuse is thus a sub-category of economic abuse, involving the use or misuse of money to control someone’s life which may include coercing a victim-survivor into taking on debt, or controlling their finances. A survey of 4,000 women found that women were more likely than men to experience financial abuse with over half of women reporting that they experienced financial abuse having personal incomes below £20,000 annually. Women’s exposure to abuse is prolonged by poverty, as victim-survivors often cannot afford to leave an abusive partner, especially in the current context of the cost-of-living crisis.

For those who experienced economic abuse, the most common stage at which the abuse started was when their pay decreased due to the coronavirus, with 35% reporting this. This reinforces that in times of financial uncertainty, whether due economic shocks, low pay or poverty, this is a conducive context for abuse to happen. Women are more likely than men to report economic abuse, with 89% of women who experienced economic abuse, and reported experiencing other forms of abuse with higher rates of physical, emotional and sexual abuse compared to men. The long-term impact of economic abuse can make it more challenging for victim-survivors to rebuild their lives. While economic abuse is more likely to occur within the context of domestic abuse, it is also prevalent in other situations, including when a woman is being sexually harassed at work.

Structural inequalities require structural solutions

To prevent violence against women, it’s critical to address gender inequality in the workplace. By advancing women’s labour market equality, and dismantling gendered barriers such as inflexible work, the high and prohibitive cost of childcare, inadequate support for victim-survivors in the workplace, low-paid and low-quality part-time roles, only then can we be closer to eradicating men’s violence against women.

Close the Gap’s Equally Safe at Work accreditation programme directly supports employers to improve their employment practice to advance gender equality at work and prevent violence against women. In the most recent roll out of the programme, 14 new public and third sector employers have become accredited, taking the total to 18 across Scotland. Findings from the evaluation in local government, NHS and third sector in 2022-2023 found that employers across sectors have, as a result of participating in the programme, taken a wide variety of action to improve their employment practice to be more gender- and VAW-sensitive. This included but was not limited to, the introduction of special leave for victim-survivors, the implementation of new policies including a VAW policy and a standalone sexual harassment policy as well as the development of new data collection systems. Further action saw employers review and update existing policies on flexible working, recruitment, equal opportunities, and organisational change. Alongside this, innovative awareness-raising campaigns highlighted the organisational commitment and dedication from employers in preventing VAW.

Employers have a critical role to play in preventing violence against women in and outwith the workplace, and advancing gender equality. However, to rely solely upon increasing women’s labour participation as the solution to gender equality, and a safeguard against poverty, is reductive. Further understanding and action is required to address the structural inequalities within the labour market. These contribute to and sustain women’s inequality, especially the systemic undervaluation of women’s work which drives women’s and children’s poverty.

To find out more about Close the Gap or Equally Safe at Work, please visit the website at www.closethegap.org.uk or www.equallysafeatwork.scot