Blog
Equal Pay Day 2021: A look at BME women’s inequality at work
From today – Equal Pay Day – women are now effectively working for free until the end of the year. New data from the Office for National Statistics (ONS) shows that Scotland’s gender pay gap has narrowed slightly from 10.4% to 10.1%, suggesting women’s workplace inequality remains stubbornly entrenched. As with last year, the data comes with reliability warnings due to the impact of COVID on the sample size of employer pay data. Further COVID-related factors such as the recent end of furlough and the impact of labour market shortages also won’t be reflected in gender pay gap data for some time.
Despite a continued lack of clarity as to how the pandemic has impacted the gender pay gap, our analysis has shown that the economic impact of the Covid crisis has been borne by women, with different groups of women affected in different ways due to intersecting inequalities. In particular, Black and minority ethnic (BME) women have faced multiple challenges in employment during the pandemic as a result of their pre-existing inequality in the labour market. Equal Pay Day is much earlier in the year for BME women, and the pandemic is likely to have exacerbated this trend.
BME women are significantly more
likely to be in precarious work which has put them at greater risk of job
disruption over the course of the crisis. Evidence highlights that
those on zero-hour contracts and in temporary employment have suffered greater
falls in earnings and hours over the pandemic than those on more secure
contracts. In addition, occupational segregation is particularly acute for BME
women, who are more likely than women as a whole to be employed in shutdown
sectors, including retail and hospitality, which means that BME women were more
likely to have been furloughed, often on less than 100% of their already low
pay. Ultimately, job disruption will have further
threatened BME women’s financial security.
Inequality in employment was a reality for BME women long before the pandemic. BME women still face deeply rooted prejudices and racism in their lives, which create and sustain workplace inequality. For example, being in the minority in a majority-white country means they are passed over for opportunities, as people are more likely to hire or promote someone who they see as ‘like them’, known as ‘affinity bias’. BME women are also over-represented in low-paid, lower status occupations such as social care. For BME women, these inequalities overlap to create an ever larger set of barriers that see them facing racist and sexist attitudes and behaviours, and employment policies and processes that sustain their inequality at work and in the wider world. Close the Gap’s Still Not Visible researchfound that almost three quarters (72%) of BME women in Scotland have faced racism, discrimination, racial prejudice and/or bias in the workplace.
Understanding the causes of BME women’s inequality in employment is critical to finding solutions and to driving change. We cannot do this without good data. Gender pay gap reporting for large private and third sector organisations has been in place since 2018, and employers have just published their third set of gender pay gap data. In late 2018 to early 2019 the UK Government undertook a public consultation on ethnicity pay gap reporting, however this is yet to translate into concrete action. The report of the Commission on Race and Ethnic Disparities encouraged employers to publish their ethnicity pay gaps, but recommended that this remain voluntary.
We know this doesn’t work. Employers are extremely unlikely to take action on inequality at work unless they are compelled to do so. We echo the joint call made by the TUC, EHRC and CBI for mandatory ethnicity pay gap reporting and welcome the Scottish Government’s commitment to make publishing ethnicity pay gaps a requirement of the Public Sector Equality Duty. The Scottish Government also plans to publish a ethnicity pay gap strategy and we’ve called for this to respond adequately to BME women’s inequality in employment.
In addition to improving the range of intersectional gender-disaggregated data, we also need employers to take strong action on inequality in the workplace. We’re currently analysing this year’s gender pay gap reporting data, but we know from previous years that less than a third of employers published actions to tackle their pay gaps, and only 4% had provided evidence of steps they had taken. If pay gap reporting is going to make a difference, it must also be backed by mandatory action plans for employers on both their gender and ethnicity pay gaps.
The causes of the gender pay gap go far beyond the issue of pay. They include a lack of flexible working, women’s disproportionate responsibility for unpaid care, biased and untransparent recruitment, development and progression practices, male-oriented workplace cultures and occupational segregation. These are all mutually reinforcing and are further compounded by discrimination and inequality rooted in racism. They affect all women, but BME women are particularly impacted.
We need to see decisive action from employers to tackle this.
Using the findings of our research and the support of experts working on race
equality, we have developed a resource for employers to help them address BME
women’s inequality in the workplace. This includes guidance on understanding
and improving workplace culture, ensuring equality and diversity are central to
recruitment, and dealing with reports of discrimination and harassment. These
are supported by tailored resources for people in key roles to enable employers
to drive change at all levels. We’ll be launching this in the new year – keep
an eye on the blog for more information.
In the coming months, Close the Gap will also be publishing the findings of
our assessment of Scottish employers’ gender pay gap reporting and our annual
gender pay gap analysis report.
Women are more likely to experience long Covid but, once again, the system of support doesn’t meet their needs
The emergence of long Covid has exposed yet another way in which the pandemic has disproportionately affected women in Scotland. Long Covid describes symptoms that persist four weeks after contracting the virus. A TUC survey found that those with long-term Covid symptoms experienced brain fog (72%), shortness of breath (70%), difficulty concentrating (62%) and memory problems (54%). These symptoms have led to workers having to reduce their working hours, or stop working altogether.
Recent analysis found that over two million people in the UK are known to have experienced long Covid and a review of risk factors found consistent evidence for an increased risk amongst women. Among symptomatic people, the persistence of one or more symptoms for 12 weeks or longer was higher in women than men. While acute cases of Covid tend to be mostly male and over 50, long Covid sufferers are both relatively young and overwhelmingly women.
Women’s increased likelihood of having long Covid therefore creates challenges for women’s labour market participation, particularly as employer responses to long Covid have made sustaining paid work particularly difficult. A recent TUC survey found that:
- Over half (52%) of respondents said they had experienced some form of discrimination or disadvantage due to long Covid.
- One in six respondents (18%) said the amount of sick leave they had taken had triggered absence management or HR processes. This could be particularly difficult for women, as evidence showed women have been forced into using their sick leave entitlement to undertake additional unpaid care during the pandemic, especially during school and nursery closures.
- Overall, one in 20 respondents said they had been forced out of their jobs because they had long Covid.
As women are more likely to experience long Covid, inadequate employer responses are threatening women’s labour market participation and financial security. It’s therefore critical that women who have had to leave their job, or reduce their working hours, are able to access financial support.
The rate
of Statutory Sick Pay (SSP) remains insufficient at £96.35 per week, and has
put women with long Covid, and their children, at increased risk of poverty. SSP is only payable for up to 28
weeks, and many women with long Covid are now reaching the end of entitlement,
making them reliant on a social security system that doesn’t meet their needs.
Other women will have missed out on SSP entirely. Despite women being more
likely to be in jobs with high-exposure to Covid-19, women’s concentration in
low-paid and precarious work makes them less likely to be eligible for SSP. Work from the Women’s Budget Group found that women hold 70%
of jobs that are not entitled to SSP.
There is therefore a need for strong employer and Government responses to
protect the financial security of women experiencing long Covid symptoms.
The TUC have called for the UK Government to urgently recognise long Covid as a disability under the Equality Act, highlighting that many individuals experiencing long Covid already meet the 12-month criteria for a ‘long-term’ condition. This would ensure that employers cannot legally discriminate against workers with long Covid while also putting a duty on employers to make reasonable adjustments that remove, reduce or prevent any disadvantages workers with long Covid face. Of course, this should be accompanied by financial support for workers who have not yet met the 12-month threshold.
There
have also been calls for long Covid to be recognised as an
occupational disease to give employees and their dependants access
to protection and compensation if they contracted the virus while working. This
is particularly important for women who make up vast majority (79%) of key
workers in Scotland, meaning they have greater exposure to the virus in the
workplace. Figures from the HSE covering the period of April to
September 2020 found that three-quarters of employer Covid-19 disease reports
made in Scotland related to a female employee.
Earlier this year, Close the Gap responded to the
consultation on Mark Griffin’s proposed Scottish Employment Injuries Advisory
Council Bill. We highlighted that the current system of Employment
Injuries Assistance and Industrial Injuries Disablement Benefit (IIDB) does not meet women’s needs and is ultimately unfit for
purpose. Women workers face significant challenges in receiving
support through the current system and these issues are likely to come to the
fore in the context of long Covid.
This proposed Bill is therefore an important, and timely, intervention. The Bill can have a positive impact on
equality through a focus on commissioning research relating to women’s
experiences of industrial injury; the development of new mechanisms and
definitions which improve women’s access to EIA; and changes to the list of
prescribed illness and diseases. At present, only 16% of those
claiming IIDB are women.
Historically, less attention has been given to the health and safety needs of women. The pandemic has also highlighted issues with women’s access to suitable Personal Protective Equipment (PPE). Only 29% of women report that the PPE they use is specifically designed for women, meaning that it is not fit for purpose. Inappropriate PPE leaves women further exposed to Covid-19, posing a severe risk to the safety of women workers and their families. Female-dominated sectors such as care have also suffered from a lack of PPE during the pandemic.
Women’s
experiences of long Covid and the barriers to accessing adequate support have,
once again, highlighted the persistence of structural issues around women’s
low-paid and precarious work; the inability of the social security system to
meet women’s needs; and the need for urgent reform of our employment injuries
assistance system.
Employers need to effectively support women workers with long Covid, and the UK
Government must urgently introduce measures to ensure women have access to
adequate financial support. Without such action, long Covid will further
entrench women’s inequality in the labour market.
Challenge Poverty Week: The next Child Poverty Delivery Plan must prioritise action on women’s labour market equality
Across Scotland an increasing number of women, and their children, are locked in the grip of poverty. We know that women are more likely to be in poverty than men; are more likely to experience in-work poverty; and are more likely to experience persistent poverty than men. The pandemic has exacerbated these trends, with women who were already struggling now under enormous financial pressure.
The impact of the pandemic on women’s employment and incomes has implications for child poverty because of the inextricable links between women’s poverty and child poverty. Women’s incomes remain a critical factor in child poverty with evidence showing that where women’s disposable income is reduced, spending on children decreases.
However,
poverty is not inevitable and Challenge Poverty Week highlights that with
strong action across a number of policy areas, we can tackle poverty in
Scotland. As women’s experience of poverty is directly tied to their experience
of the labour market, a key area when urgent action is required is employment.
Women account for 60% of workers
earning less than the real Living Wage in Scotland. Work
that is seen as “women’s work”, such as cleaning, care and retail, is
systematically undervalued in the labour market because this work is done by
women. This results in the low pay associated with those jobs and sectors and
has lifelong impacts for women including having higher levels of debt, less
savings and fewer assets.
Women are more likely than men to have caring
responsibilities and therefore face the additional pressure of finding work
that allows them to balance earning with caring. This sees women further
concentrated into low paid and insecure work, as most part-time work is found
in the lowest paid jobs and sectors, often leading to women working below their
skill level. Research from Living Wage Scotland found that
women in part-time work stand to benefit the most from Living Wage
accreditation.
In
Scotland, only 24% of jobs were advertised with flexible
options by the end of 2020. The pandemic has also highlighted a clear disparity in access to
flexibility, with low-paid and lower-skilled workers less likely to have access
to homeworking.
The lack of flexibility in full-time employment across the labour market, but
particularly in low-paid full-time work, is a barrier to women increasing both
their hours and earnings. There are particular challenges for mothers of
school-age children, especially single mothers, in covering school holidays while
in full-time work.
Women with caring responsibilities, and single parents particularly, 91% of
whom are women, are therefore trapped in poverty by a range of employment-related
factors including generic employability programmes; the prohibitive cost of
childcare; lack of quality flexible working and part-time work, with reliable
hours; and difficulties in accessing training and development opportunities.
The Scottish Government should prioritise addressing these barriers within
anti-poverty policymaking.
A key driver of the Scottish Government’s
action on poverty is the Tackling Child Poverty Delivery Plan. Within this Plan, work and earnings
is designated a priority area for action. The
Plan explicitly recognises that poverty is gendered and highlights the need to
advance women’s labour market equality. Actions include engaging with sectors,
such as tourism and hospitality, in which women’s low pay is a concern; addressing
the gender pay gap; and enabling more flexible working opportunities.
The next Child Poverty Delivery Plan is due to be published in March
2022. Close the Gap are clear that the focus on women’s labour market
inequality must be maintained, and further developed, within this Plan. The
Scottish Government should ensure that the new
Delivery Plan is ambitious, gender competent and reflective of the current
context.
Last week, Close the Gap responded to the
Scottish Government’s call for evidence on the Child Poverty Delivery Plan. In our response, we call for a range of
actions on women’s labour market inequality including tackling the
undervaluation of ”women’s work” in sectors such as childcare and social care; the introduction of a gender-sensitive minimum
income guarantee; further
increases in the funded childcare entitlement; and ensuring greater access to
gender-competent employability and skills support.
An overarching ask relates to the process of policymaking. Gender mainstreaming
is a strategy to proactively embed gender analysis in all policy and
legislative development. But despite being a requirement of the public sector
equality duty, gender mainstreaming is not yet visible within Scottish
Government policy development. Some of the current Plan’s actions, particularly
in the realm of upskilling and reskilling, have not been gendered by design.
These actions are thus unlikely to tackle the causes of women’s poverty.
We also called for improvements in the range of gender-sensitive sex-disaggregated
data gathered in the evaluation of the Child
Poverty Delivery Plan. While the current Plan, and the accompanying Equality
Impact Assessment, commit to making progress in addressing gendered data gaps
on poverty in Scotland, there does not appear to have been significant progress
in this area.
Children’s access to resources, safety and
wellbeing cannot be divorced from the circumstances of their mothers. Achieving Scotland’s child poverty targets requires urgent and concentrated
action to eradicate poverty and inequality experienced by women. While the
Child Poverty Delivery Plan 2018-2022 recognises this explicitly, the actions
on women’s labour market inequality have not been sufficiently prioritised.
Ultimately, unless the Child Poverty Delivery Plan 2022-2026 prioritises action
to advance women’s equality and secure women’s incomes, Scotland will fail to
meet child poverty targets.
You can read Close the Gap’s full response to
the consultation on the Child Poverty Delivery Plan here.
What will the end of furlough mean for women’s employment?
Despite the latest data showing that one-quarter
of employers across the UK were still using the scheme, the UK Government’s Job Retention
Scheme is scheduled to finish at the end of September.
Furlough
has been a welcome, if imperfect, intervention by the UK Government. The scheme has supressed unemployment, with
cumulative data showing that over 910,000 jobs in Scotland have been furloughed
over the course of the pandemic. Given women’s concentration in service sectors
such as retail and hospitality, the scheme has enabled women who work in these sectors
to protect some of their income during prolonged periods of sector shutdowns.
The decision to end the scheme in September has been viewed by some as an arbitrary
decision, not tied to any particular milestone in the pandemic or the state of
the economy. Indeed, the trajectory of the pandemic still remains
somewhat unclear. In Scotland, positive
cases and hospitalisations have been on the rise again and it is likely that there may be further
surges in the winter months. In the absence of furlough to protect jobs during
any future lockdowns or sector shutdowns, there are concerns about unemployment
in the coming months.
Data on the Job Retention Scheme shows that 116,500 employees remain on furlough in Scotland. While women accounted for majority of those on furlough in Scotland from July 2020 to April 2021, the latest data shows that women account for 49% of those still on furlough. Previous analysis by Close the Gap found that younger women were more likely to be furloughed than their male counterparts. This remains true, with women making up 55% of furloughed staff among those aged under 18. However, the highest take-up rates of furlough now reside among the over 65 age group, with 8% take-up among women in this age group and 9% among men.
Declining rates of
furlough among women is primarily driven by decreases in the number of jobs on
furlough in sectors such as accommodation and food services. However, while
furlough rates are declining in these sectors, over one-third (35%) of
furloughed jobs in Scotland reside in female-dominated retail and hospitality.
This creates a potentially negative outlook for women’s employment in these
sectors.
The
Scottish Government’s Programme for Government, published earlier this month,
notes that the full impact of COVID-19 on employment will only become clear
with the end of the Job Retention Scheme. Certainly, a number of factors makes it
difficult to determine the impact the end of furlough will have on unemployment
in Scotland:
- While declining rates of furlough over recent months could imply that employment will remain relatively stable at the end of the scheme, occupations and sectors with continued elevated rates of furlough, such as air travel assistants (65.4% female), travel agency (93.3% female), and arts and entertainment (60% female), continue to face suppressed demand and tighter restrictions. Women’s dominance in these sectors would appear to put their employment at greater risk, because it cannot be assumed that furlough rates in these sectors will decline in the coming weeks
- Furlough rates in male-dominated sectors such as manufacturing no longer appear to be linked to the level of public health restrictions. Evidence points to employers in these male-dominated sectors continuing to furlough staff to counter the impact of Brexit and international trade issues, as opposed to the impact of the pandemic. Wider economic factors may therefore be inflating the male furlough rate, creating complexities in predicting the impact of the pandemic on women’s employment when furlough comes to an end.
- Those who lose their current job at the end of furlough will not necessarily become unemployed, with labour market analysts pointing to declining unemployment rates since the start of 2021 and rising vacancy rates as a cause for optimism. However, women who have been made redundant will face gendered barriers to re-entering employment, including a lack of flexible working, occupational segregation and discriminatory recruitment practice.
Due to the lag in labour market data,
the impact of the end of the scheme won’t be visible in labour market data
until December. For now, what’s certain is a lack of certainty around the
impacts the end of furlough will have on unemployment in Scotland.
The Scottish Government expects disproportionately negative employment outcomes
for women, as well as young people, Black and minority ethnic (BME) people,
lone parents and disabled people. This is particularly significant, as these
groups already face structural barriers to employment and, as a result of their
intersecting identities, BME women and disabled women will face particular
barriers to good quality employment. Consequently, Scottish Government have
concluded that activity to drive up good, secure and well-paid employment
opportunities for those at greatest risk of poverty will have to be prioritised
in the aftermath of the pandemic. To date, however, this rhetoric has not yet translated
to effective action on women’s in-work poverty and job insecurity in Scotland.
This focus on job quality, as well as job numbers, is extremely welcome as women’s employment is increasingly precarious, and concentrated in low-paid work.
Research from the IFS found that the aforementioned surge in job vacancies has been driven entirely by low-paying occupations, in which new job openings are around 20% higher than pre-pandemic. As the IFS also concluded that competition for new job opportunities is higher for women than it is for men, a focus on good quality employment will be critical in preventing women being funnelled into low-paid employment.
Unemployment rates will undoubtedly be an important indicator of economic recovery. However, if we are to meet the ambition of building a fairer economy in the aftermath of the pandemic, we need to move beyond a narrow focus on employment rates alone and ensure that fair work for women is core to economic recovery. Following the 2008 financial crisis, employment rates masked a rise in low paid work, slow wage growth, as well as increasing precarity and job insecurity in the labour market. This also reduced Scotland’s gender pay gap, not because there was an increase in women’s pay, but rather there was a downward pressure on men’s pay.
Many of the sectors which account for
a large proportion of female job losses over the crisis are notoriously low paid and
characterised by job insecurity. For example, four in ten of those working in female-dominated retail and
wholesale are paid less than the real Living Wage.
In hospitality, also a majority
female workforce, 80% of workers reported that they were already struggling with
their finances before going into lockdown. A return to the status quo will
merely cement women’s labour market inequality and in-work poverty.
While furlough has gone some way to protect employment and earnings for some
women, key features of the Job Retention Scheme actually increased the
likelihood of women leaving work in order to care, particularly at the start of
the crisis. As a result of the failure to embed gender analysis in
policymaking, the House of
Commons’ Women and Equalities Committee concluded that the design of furlough
“overlooked - and in some respects continues to overlook - the specific and
well-understood labour market and caring inequalities faced by women.”
As furlough comes to an end and the impacts of the pandemic on employment become clear, we cannot afford for women’s labour market equality to continue to be an afterthought in policymaking. It’s time to put gender equality at the heart of fair work and to prioritise policies and interventions which tackle occupational segregation, women’s low pay and the continued undervaluation of women’s work.
What’s Violence Against Women got to do with women’s labour market inequality? Close the Gap’s new animation explains.
Close the Gap has developed a short animation for Equally Safe at Work that explains the link between violence against women (VAW) and women’s labour market inequality. Tackling women’s inequality in the workplace is a necessary step in preventing VAW, so employers therefore have a key role to play.
Having an understanding of the causal story is a critical component of Equally Safe at Work. Employers need to understand the problem, and their role in designing and delivering solutions, if they are to develop gender-sensitive employment practice.
The evaluation of the pilot of Equally Safe at Work identified that there is a need for capacity building among employers and staff on the link between VAW, gender inequality, and women’s labour market inequality. This animation conveys a complex problem in a simple and accessible way. It will be used as a learning resource for employers engaged with Equally Safe at Work to build knowledge and awareness around VAW and women’s employment.
For more information on Equally Safe at Work, you can visit: https://www.equallysafeatwork.scot/workplace-gender-equality/