East of England experiences largest decline in PwC’s Women in Work Index

• The East of England experienced the largest drop among 12 regions and nations, reflecting a deteriorating performance across all five indicators.

• The UK slipped from 17th to 18th in the Index ranking, down from 10th in 2020 - the steepest post-pandemic decline amongst OECD countries - with Iceland, New Zealand and Luxembourg being the best performing. Scotland is the UK’s top performing region for the second year in a row. 

• Despite marginal improvements in gender pay gap and high female labour participation, the UK's overall ranking fell due to worsening unemployment and a widening participation gap.

The East of England has experienced the most significant decline among the UK’s regions and nations in the latest PwC Women in Work Index, dropping five places from 3rd in 2022 to 8th in 2023. This decline highlights the challenges faced by the region in achieving gender equality in the workplace.

Between 2022 and 2023, the East saw deteriorations across all five indicators assessed by the Index: female participation rates, participation rate gap, female unemployment rate, female full-time employment rate, and gender pay gap.

Key factors contributing to the East's decline include:

• Female Participation Rate: The region experienced a decline of 0.7 percentage points in the female participation rate, falling from 77% to 76.4%.

• Gender Pay Gap: The gender pay gap widened by 1.2 percentage points, increasing from 14% to 15.2%. This reflects ongoing challenges in achieving pay parity between genders.

• Female Unemployment Rate: The female unemployment rate worsened significantly, rising by 1.4 percentage points from 2.6% to 4%.

These declines underscore the need for targeted interventions to support female employment and to address the gender pay gap in the region. The East's performance contrasts sharply with other regions, such as the North East, which saw significant improvements in female participation and wage gap metrics.

Commenting on the findings, Chrissie Freear, R&D Tax Partner at PwC UK, said:

"The decline in the East's ranking in the Women in Work Index highlights critical areas needing attention to improve outcomes for women in the workforce. Key issues include a widening gender pay gap and rising female unemployment rates, underscoring the ongoing challenges faced by women, particularly in male-dominated industries. 

To address these challenges, it is essential for policymakers and businesses to collaborate on initiatives that support female participation and work towards closing wage disparities. Programmes empowering women back to the workplace, such as childcare initiatives or those in STEM fields, are vital, particularly given the richness of STEM employment opportunities in the East. By prioritising these efforts, we can create equitable opportunities and help the East regain its standing, contributing positively to the UK's progress in gender equality.”

Efforts to reverse these trends are essential for the East to regain its standing and contribute to the UK's overall progress in achieving gender equality in the workplace.

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. The North-East was the most improved, moving up six places to fourth, due to much better female participation, lower unemployment, and wage gap improvements. Five regions experienced a deterioration, with East Midlands joining the East of England.

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.

The UK’s Index performance in-depth

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.   

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.”

Read the full Women in Work Index.