North East makes strides in PwC’s Women in Work Index

The North East region has made marked progress in closing the gender gap in the workplace, climbing six places to rank fourth in PwC’s latest Women in Work Index. The jump was the largest of all 12 UK regions contained in the research.

This positive shift is attributed to a 3.5 percentage point reduction in the gender pay gap, now standing at 10.2%. Additionally, the region’s female participation rate rose by 1.6 percentage points to 72.8%, accompanied by a 1.4 percentage point decrease in the female unemployment rate, now at 3.2%.

North West and Yorkshire show modest gains

While the North East showed progress, the North West and Yorkshire and the Humber remained unchanged in regional rankings, at seventh and ninth place respectively.

The North West saw a slight dip in its overall score, primarily due to a widening gender pay gap, which increased by 0.4 percentage points to 13.7%. However, the region did experience a slight rise of 0.5 percentage points in the female full-time employment rate, reaching 61.4%.

Yorkshire and the Humber experienced a marginal improvement in its overall score, driven by positive gains in female full-time employment, which rose by 1.1 percentage points to 56.5%. This positive development was offset by a slight widening of the gender pay gap, which increased to 15.8%.

Regional inequalities in the UK

Half of the UK regions (six out of 12) recorded improvements in their index score year-on-year. Scotland placed first for the second year running, improving its female participation rate, and its wage gap narrowed significantly from 11.8% in 2022 to 8.3% in 2023. Five regions experienced a deterioration, most notably in the East and East Midlands.

Overall, the gap between the worst and best performing regions has widened, by approximately seven points year-on-year. The contributing factors for this have been the impact of slow regional growth in certain parts of the UK, and varying degrees of both implementation of the ‘Levelling Up’ agenda and proactive efforts of devolved governments in supporting female employment.

Emma Suchland, Regional Market Leader for the North at PwC UK, said:

“Our latest findings provide some means for encouragement, with the North East showing signs of progress in particular. However, this is paired with relatively stagnant improvements in both Yorkshire and the North West. With both regions widening their gender pay gaps, this shows that there is still much work to be done if northern regions are to receive the full benefits of gender equality in the workplace, such as increased productivity and innovation, a larger and more diverse talent pool, and stronger economic growth.”

UK performance lags on global stage

The UK's performance in the Women in Work Index has varied since its inception in 2011, averaging 16th place over the years since. It peaked at 10th in 2020, in large part due to the COVID-19 furlough scheme. The latest result (which covers 2023) is the lowest the UK has ranked in over a decade, when it ranked 19th in 2012. For the first time since 2019, the UK is no longer ranked number one among the G7 economies, and is now second behind Canada.   

Gender equality boosts GDP

Related PwC research identifies a positive link between female workplace participation and a country’s economic performance. Specific focus was given to analysing the impact of the female participation rate on increased productivity, and the resulting boost to productivity of OECD countries.

The findings indicate a correlation between increased female participation and productivity and GDP growth across OECD countries from 2011 to 2023, leading to an annual increase of USD $0.19 in GDP per hour worked for the average OECD country. This translated into an average GDP boost of USD $4.5bn per OECD country a year. If progress toward full gender equality in the workplace were to continue at the same pace for the next five years, total productivity gains by 2030 could amount to $54.5bn (£43.5bn) in UK GDP, $31.6bn for the average OECD country and $105.5bn for the average G7.

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.” 

In 2023, the UK had a female labour force participation rate of 74.80%, compared to 72.70% and 71.69% in the OECD and G7, respectively. The G7 had the weakest performance, with its 2023 participation figure now only just aligning with that of the UK’s in 2014.