Islands lagging in the gender pay gap race

PwC produces an annual Women in Work Index, and analysis by its local teams has reported the two islands being overtaken by ‘pace setters’ and competitor jurisdictions such as Luxembourg.

‘Worryingly, Jersey has slipped from 20th in our 2019 report to 24th place in our latest report.

‘Guernsey has fallen from 14th to 19th, moving it to the lower half of the index with Jersey,’ said the analysis. Iceland, Sweden, New Zealand, Slovenia and Luxembourg took the top five spots in the rankings.

‘While the Channel Islands’ indicators remained much the same between 2017 and 2019, other countries have been moving further and faster in improving gender equality. Pace setters include Luxembourg (5th), against which the Channel Islands directly competes for talent and investment.

‘The good news is that Jersey and Guernsey actually outperform the OECD average for female participation in the labour force, along with female unemployment rates.

‘Where the Channel Islands fall down is in the gender pay gap. At 21%, this is five percentage points above the UK and one of the highest in our international rankings. Only Estonia, Korea and Japan have a higher gender pay gap.’

It warned the impact of Covid-19 risks turning back the clock on gender equality, and getting back on track would not only strengthen opportunities for women but boost prosperity, growth and international competitiveness.

‘At the same time, the pandemic could prove to be a catalyst for progress and change,’ said the analysis. ‘For one, the upheaval of the past year has intensified the spotlight on inequalities within society and urges policymakers to recognise the value of the unpaid work performed by women.

‘The drive to create more and better paid opportunities for women could also form an important part of the workforce-wide upskilling the Channel Islands needs in order to compete in an increasingly digitised global economy. The resulting boosts to growth and living standards of increasing female participation in the economy could be game-changing.’

In Guernsey, increasing the female employment rate to match Sweden’s could raise GDP by 5% a year – equivalent to £176m.

In Jersey, matching Sweden would also deliver a 5% uplift to GDP – equivalent to £259m.

‘Closing the gender pay gap in Guernsey would generate a 26% increase in female earnings, equivalent to a further £111m. boost. In Jersey, this 26% increase would generate the equivalent of £226m. in increased earnings.

‘These potential economic benefits may seem far-fetched, but could be achievable if we up-skill women into higher value jobs, encourage more “non-employed” women back into the workplace or help them become entrepreneurs.

‘The “part-time penalty” could be eradicated if employers focused more on flexibility and output and less on time on the clock. But above all there are numerous studies that show clear links between diverse organisations and business success.’