SCOTLAND has retained its status as the best part of the UK for women in the workplace, according to figures.
It has ranked as the top performing region in PwC’s Women in Work Index for the second consecutive year, amid a national trend of stagnation in workplace gender equality.
Data presented by PricewaterhouseCoopers (PwC) International Ltd says Scotland’s performance is largely due to the narrowing of the gender pay gap and maintaining a high female labour force.
The Women in Work Index assesses UK regions based on five key indicators: the gender pay gap, female labour force participation rate, the gap between male and female labour force participation rates, female unemployment rate, and female full-time employment rate.
The figures show the gender pay gap in Scotland narrowed from 11.8% in 2022 to 8.3% in 2023.
Scotland has the lowest participation rate gap in the UK for 2023, sitting at 5.1%, despite a slight deterioration from 4.4% in 2022, the report said.
In terms of labour market strength, the figures show Scotland’s female unemployment rate is currently at 3.1%.
The report also found Scotland’s female labour force participation rate rose to 75% in 2023, an increase of 0.1% on the previous year.
Gillian Alexander, partner at PwC Scotland, said: “Scotland’s sustained success in the Women in Work Index is a testament to a proactive approach in addressing gender workplace inequalities.
“The significant reduction in the gender pay gap and Scotland’s strong labour force participation rate highlight the positive impact of policies aimed at fostering inclusive work environments.
“However, regional disparities across the UK indicate that more must be done to ensure women in all parts of the country have equal opportunities to thrive in the workforce.”
While Scotland was found to have progressed, other parts of the UK experienced widening disparities in terms of women in work.
The North East of England saw the most significant improvement, jumping six places to fourth for the whole index, which is comprised of 12 regions.
The East of England experienced the largest decline, dropping five places down to eighth place.
According to the data, the UK as a whole has slipped from 17th to 18th place in the Organisation for Economic Co-operation and Development rankings, reflecting sluggish progress compared to international counterparts.
This was said to be mainly due to worsening female unemployment rates and an increasing participation gap.
Iceland is first on the index, followed by New Zealand and Luxembourg.
PwC says increasing the female workforce since 2011 has helped contribute an additional £6.2 billion in GDP per annum to the UK economy.
It advised policymakers and businesses to continue to implement strategies that will enable women to fully participate in the workforce.
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.
“As our research shows, increasing the workplace participation rates of women has the potential to significantly boost the UK economy and help solve the productivity puzzle – providing a valuable pathway to achieving sustainable growth.”
Employment minister Tom Arthur said: “Scotland continues to have a lower gender pay gap than the UK, but we recognise that more needs to be done.
“Fair pay and fair and secure work for women is vital to this government’s missions to eradicate child poverty and get the economy firing on all cylinders.
“While employment law is reserved, we are taking action through our Fair Work approach to reduce barriers for women to access, remain in and progress in work and reduce the gender pay gap.”
