Gender Pay Gap Unlikely to Close for Gen Z Women in the UK
Key Findings
The 2024 PwC Women in Work Index reveals a troubling trend: the gender pay gap is widening. Across OECD countries, the average gender pay gap grew from 13.2% in 2021 to 13.5% in 2022. In the UK, this gap increased from 14.3% in 2021 to 14.5% in 2022, causing the UK to fall from 13th to 17th in the Index rankings.
PwC’s Inclusion Matters research further highlights significant disparities in workplace dynamics:
- Men are more likely than women to ask for promotions (-9 points) and pay raises (-8 points).
- Only 39% of women feel they are being fairly compensated for their work.
Implications for Gen Z Women
For Generation Z women (aged 18-24), the outlook is particularly concerning:
- 67% of Gen Z women are worried about not saving enough for retirement, compared to 55% of Gen Z men.
- Despite having the smallest gender pay gap, Gen Z women are acutely aware of financial pressures.
These findings suggest that Gen Z women are either better informed about the financial challenges they face or are experiencing greater financial pressures than other groups. Given the current rate of progress, it will take over half a century to close the average gender pay gap across OECD countries. As a result, Gen Z women are unlikely to achieve pay parity before reaching retirement age.
The research underscores the urgent need for employers and the pension industry to engage with and support young women, addressing the gender pay gap and its long-term implications for their financial security.
