Report Says Gender Pay Gap Will Exist Until 2069

A report by accounting firm Deloitte has revealed how the male and female pay gap is decreasing by only 2.5p per year, which means the current £1.30 average hourly rate difference will not close until the year 2069. This will occur nearly a century after the 1970 Equal Pay Act was introduced in order to ensure equal pay between the genders. Although the gap is now at a record low for full-time female workers, employers are still being encouraged to be more transparent about the pay gap between their workers. Deloitte’s managing partner for talent, Emma Codd, dismisses this as unacceptable: “A great deal of progress has been made in the past half century, but we should not wait another 53 years for full parity”.

The current gap sees female wages at a rate of 9.4% behind their male counterparts. This pay discrepancy is a situation that largely exists from the beginning of women’s post-university life as 90% of the most popular graduate careers result in male graduates being paid higher starting salaries.

Deloitte’s analysis, which is based on official figures and data from the Higher Education Statistics Agency, found that one of the larger pay gap industries is within the health sector where female employees experience a £4,000, or 14% pay gap. Female graduates earn an average of £24,000 in graduate starting salaries for health care roles compared to the £28,000 men receive.

Deloitte believe that a greater number of women should be assisted into careers within STEM industries (science, technology, engineering and mathematics) where balanced salary levels are prevalent despite women accounting for just 14.4% of the workforce.

However, generally there are less female graduates studying for careers in these sectors, and shockingly the report notes that at least 70% of women with STEM qualifications are not working in industries relevant to their degree. The report calls for UK businesses and schools to encourage girls of secondary school and college age to undertake studies that lead to careers where the pay gap is less prominent, with STEM industries being a priority.

Jemima Olchawski, head of policy and insight at the Fawcett Society, feels the loss of skilled women in STEM roles affects the entire UK workforce: “At the current rate of progress young women starting work today will have retired by the time we close the gender pay gap. None of us can afford to wait that long”.

The contents of the report have already led to strong reactions from other leading Trade Union groups. Frances O’ Grady, the General Secretary of TUC, regards the findings as part of an overall government failure to properly assist women in the workplace across several key areas: “We need action on the pay and quality of part-time work, flexible work opportunities, affordable childcare, and more independent paid leave for fathers”.