Scotland retains top spot in PwC’s Women in Work Index, as gender pay gap narrows

  • Press Release
  • 03 Mar 2025

 

  • Top UK region: Scotland remains in first place among UK regions for gender workplace equality.
  • Gender pay-gap improvement: Scotland’s gender pay gap narrowed significantly from 11.8% in 2022 to 8.3% in 2023
  • Participation rate gap: Scotland has the lowest participation rate gap in the UK at 5.1%, despite a slight deterioration from 4.4% in 2022
  • Labour market strength: Scotland continues to benefit from a relatively low female unemployment rate of 3.1%.

For the second consecutive year, Scotland has ranked as the top-performing region in PwC’s Women in Work Index, reaffirming its status as the best part of the UK for women in the workplace. 

The latest findings show that Scotland has maintained its leading position amid a broader national trend of stagnation in workplace gender equality. The region’s strong performance is underpinned by significant progress in narrowing the gender pay gap and maintaining high female labour force participation.

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.

According to the 2025 Women in Work Index, Scotland’s Index score was bolstered by an increase in female participation rates and a significant reduction in the gender pay gap. Scotland’s female labour force participation rate rose to 75% in 2023, up from 74.9% in 2022, while the gender pay gap narrowed from 11.8% to 8.3% over the same period.

Scotland also continued to record the lowest participation rate gap between men and women across the UK, standing at 5.1% in 2023. However, this represents a slight widening from the 4.4% gap reported in 2022, indicating the need for sustained efforts to further close the gap.

While Scotland continues to progress towards greater equality, the latest Women in Work Index highlights widening disparities across UK regions. The North East saw the most significant improvement, jumping six places to fourth in the rankings, driven by gains in female participation, a reduced gender pay gap, and lower female unemployment. Conversely, the East of England recorded the largest decline, dropping five places due to worsening performance across all five indicators.

The broader UK picture remains mixed. The UK as a whole has slipped from 17th to 18th place in the OECD rankings, reflecting sluggish progress compared to international counterparts. Despite improvements in some indicators, the UK’s overall ranking fell due to worsening female unemployment rates and an increasing participation gap. Iceland ranks first on the Index, moving up three places from 2022, followed by New Zealand and Luxembourg.

Gillian Alexander, partner, PwC Scotland, commented:

“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.”

Economic Benefits of Workplace Gender Equality

The economic case for workplace gender equality remains clear. PwC’s research has demonstrated that increasing female labour force participation boosts productivity and overall economic growth. In the UK, improvements in female participation since 2011 have contributed £6.2 billion per year to GDP. 

As policymakers and businesses look ahead, the focus must remain on implementing strategies that enable women to fully participate in the workforce. Scotland’s continued leadership in gender workplace equality provides a model for other regions aiming to improve employment outcomes for women.

Phillippa O’Connor, Chief People Officer at PwC UK, added:

"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.”

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