South East climbs to third place in PwC’s Women in Work Index

• The South East region moved up three places in the PwC’s Women in Work Index, from sixth to third.

• The region saw an improvement across all five Index indicators except gender pay gap, which dropped by 1.6 percentage points.

• 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 UK region for the second year in a row. 

The South East rose from sixth to third among the UK’s nations and regions in PwC’s Women in Work Index, which assesses progress made towards achieving gender equality at work across 33 OECD countries and 12  UK regions and nations. 

The South East is one of six UK regions that recorded an improvement in their overall Index score, rising by 0.7 points from 41.6 to 42.3 between 2022 and 2023.

The Index evaluates five indicators: female participation rates, participation rate gap, female unemployment rate, female full-time employment rate, and gender pay gap. The South East saw an improvement across all indicators, with the exception of the gender pay gap, where it ranked last,, with a gap of 18.7%, falling 1.6ppt from 17.1% in 2022. The South East has consistently had one of the highest gender pay gaps for the past four years.

The most positive improvement within the South East was the rise in female labour force participation (78.3%), which improved by 1.1ppt on its 2022 value (77.2%). The region had the highest female labour force participation rate among the UK’s nations and regions.

Carrie Hale, Partner at PwC UK, said:

“It's encouraging to see South East moving up in the Index and improving most of its indicators, reflecting collective efforts towards fostering gender equality and the positive impact this generates. Achieving gender equality in the workplace not only enhances productivity and innovation but also creates a larger and more diverse talent pool that drives stronger economic growth. However, the region still faces challenges, particularly with the gender pay gap, which remains one of the highest in the UK.

“As we move forward, it’s essential that we address these inequalities by implementing strategic initiatives that support women’s advancement in all sectors, especially in leadership and emerging fields like AI and technology. By working closely with business leaders and policymakers, and investing in the skills and representation of women, we can build a more equitable and prosperous future for the South East”

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 74.8%, compared to 72.7% and 71.7% 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.

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, 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.

Read the full Women in Work Index