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Gender Pay Gap Falls To Record Low Rate

The Office for National Statistics (ONS), has just released the new Annual Survey of Hours and Earnings (ASHE), as the gender pay gap falls to a record low level of 8.6% for full-time employees, a key finding of the new survey.

Gender Pay Gap Falls

The ONS looked at changes during the year to April 2018. The key findings of the new ONS survey are:-

  • The gender pay gap falls from 9.1% to 8.6% for full-time employees, a record low
  • The gender pay gap fell from 5.3% to 4.4% for part-time employees
  • The overall gender pay gap for both full and part time employees fell from 18.4% to 17.9%
  • The gender pay gap in terms of median full-time hourly earnings is highest amongst what the survey refers to as ‘skilled trades occupations’ (23.9%), and is lowest amongst sales and customer sales occupations (4.8%). In terms of occupations, the largest gap in favour of men is amongst production managers and directors in the mining and energy sector (49%), whereas the largest gap in favour of women is amongst what the survey refers to as ‘other drivers and transport operatives’ (42%)
  • London has the widest gender pay gap in terms of median gross hourly earnings (13.7%), whereas in Northern Ireland in contrast, there is gap of 3.5% in favour of women
  • The gender pay gap is below 2% for all age groups between the ages of 18-39. For example, for those aged 22-29, the gap is 1.3%. However, the gap rises sharply from the age of 40 onwards. For instance, for the age group 50-59, the gender pay gap is 15.5%

Calls For More Action

Despite the gender pay gap fall to a record level, many called for further action. The chief executive of the Fawcett Society, Sam Smethers, for example stated: “This is a practically static picture on pay inequality. This slow rate of progress means without significant action women starting work today and in decades to come will spend their entire working lives earning less than men. It’s a loss they can’t afford and it’s a missed opportunity for our economy. Improving our performance on gender equality in the workplace could increase GDP by £150 billion.

The TUC also stated that: “Since 2011 the gender pay gap has fallen by an average of just 0.3 percentage points a year. At this rate it will take around 55 years (until 2073) to achieve pay parity between men and women.”

Posted in Equal Pay, gender pay gap, Gender Pay Gap Reporting, General Employment Law and tagged , , .