A report by the Fawcett Society revealed an emerging concern where women aged 40 and over in the UK are unlikely to close the gender pay gap until they reach retirement age.
This disheartening forecast has sparked renewed discussions about gender equality in the workplace and the need for comprehensive measures to address persistent wage disparities.
The Equal Pay Day 2023 report, "Making flexible working the default", found that working women on average take home £574 a month or £6,888 a year less than men.
Jemima Olchawski, the chief executive of the Fawcett Society said: "Flexibility supports women's career progression, grows the talent pool for employers and breaks the link between women and less-desirable flexible work. Flexibility in high-quality, high-paid jobs must be normalised for all employees."
The implications of this forecast are substantial, affecting the financial well-being of a large demographic of working women. The gap in earnings not only reflects economic inequality but also raises concerns about the long-term financial security of older women entering retirement with lower accrued earnings.
Experts and advocates for gender equality have expressed disappointment at the slow progress in narrowing the pay gap for this age group.
Many argue that this phenomenon is a result of systemic issues embedded in the workforce, including occupational segregation, unequal career progression opportunities, and lingering stereotypes that undervalue women's contributions.
The report from Fawcett was based on a comprehensive survey conducted by Survation across the UK involving 2,844 adults.
The report's findings showed that forty per cent of unemployed women expressed the view that having access to flexible work arrangements would empower them to pursue paid employment, a sentiment shared by almost a third of unemployed men.
Additionally, the data highlights a significant gender disparity in part-time employment, with 27 per cent of women reporting part-time work compared to 14 per cent of men.
Another noteworthy revelation is that approximately 77 per cent of women surveyed agreed that they would be more inclined to apply for a job that explicitly advertised flexible working options.
Beyond these statistics, Fawcett is advocating for the implementation of a mandatory ethnicity pay gap report.
Drawing from the most recent data provided by the Office for National Statistics (ONS) in 2020, the report underscores substantial pay disparities among ethnic groups, with Black African women earning 26 per cent less than men, Bangladeshi women facing a 28 per cent gap, and Pakistani women experiencing a significant 31 per cent pay disparity.
The government, under increased scrutiny for not achieving its target of eliminating the gender pay gap by 2020, is facing renewed calls for stronger action.
Campaigners are urging policymakers to implement and enforce policies that promote transparency in pay structures, address workplace biases, and foster an environment where women have equal opportunities for career advancement.
Despite strides in recent years to address gender pay disparities, the latest revelations indicate that a substantial gender pay gap persists for women in their 40s and beyond. This sobering reality underscores the need for sustained efforts to create workplaces that champion equality and fairness.
Organizations advocating for women's rights in the workplace stress the importance of targeted initiatives to support women at various career stages, particularly as they approach midlife and beyond.
Mentorship programs, flexible work arrangements, and initiatives to combat unconscious biases are among the proposed strategies to bridge the gender pay gap.
As the issue gains prominence, it is expected to become a focal point in discussions leading up to the 2024 election. Voters and advocacy groups are likely to scrutinize political parties' commitments to addressing gender inequality, with a particular emphasis on closing the persistent pay gap for women aged 40 and over.
Priya Sahni-Nicholas, co-executive director of the Equality Trust, said the government should "prioritise tackling the systems and structures within our economy that perpetuate pay gaps – such as fixing our broken childcare system, reform of parental leave entitlement and a work culture built around flexibility – alongside mandatory action plans to close the persistent pay gaps we see across gender, ethnicity and disability".
In the coming months, attention will undoubtedly turn to the government and employers to implement concrete measures aimed at dismantling the barriers contributing to the gender pay gap for women in the latter stages of their careers.
