No more gender pay gap in the UK by 2046, according to estimations

Closing the gap: looking at improvements in female employment and the worst industry to work in as a woman.

The workplace is transforming. The gender pay gap is steadily closing, and women are making significant strides in employment across industries. While challenges remain, the future looks promising – with projections estimating an end to the pay gap by 2046 and a 6.6% increase in female employment. 

What is the gender pay gap? 

The gender pay gap refers to the difference in average earnings between men and women, disproportionately affecting women. It shows the percentage difference in average pay, often reflecting deeper disparities in opportunities, roles, and workplace treatment. While progress has been made to narrow this gap, it still highlights barriers like unequal access to high-paying jobs, discrimination, and societal expectations. 

In essence, it’s not just about pay – it’s about equality.

What is the government doing about it? 

Understanding where the gender pay gap exists is key to closing it. In 2017, the UK government introduced a law that requires companies with 250 or more employees to report their wage gap annually. These reports shine a spotlight on industries and companies lagging behind.

Unsurprisingly, these publicly available reports show that the trade with the highest percentages of gender pay gap in 2024 is the highly male-dominated ‘skilled trades occupations’. These are hands-on jobs such as plumbing, bricklaying and construction. 

Take Mace Group LTD, a London-based construction company with around 7,300 employees. According to their 2023-2024 wage gap report on Gov.uk, for every £1 a man earns at Mace, a woman earns just 60p. In an era of progress, such a stark gap is a clear sign that some industries need a lot more work.

Trends and predictions 

Despite the challenges, there’s good news: the gender pay gap is steadily shrinking. According to the Office for National Statistics (ONS), the gap has decreased by nearly 2% since 2020, driven by the increasing number of women entering the workforce.

More women in the workforce means more women breaking into high-paying jobs and traditionally male-dominated industries like tech and skilled trades. It also pushes companies to adopt better policies for pay equity and fair practices. This trend is reshaping workplaces, challenging outdated gender roles, and fostering a culture of equality.

Currently, female employment is rising by approximately 0.3% per year and the gender pay gap is decreasing by 0.6% each year. If this trend continues, the data suggests that by 2046, there will be no more gender pay gap, and female employment will have increased by 6.6%.

This is not just a victory for women – it’s a win for everyone. A more inclusive labour market drives innovation, increases productivity, and boosts economic growth.

On another note, interestingly, the data shows that the gender pay gap in part-time employment is in favour of women. This reflects the fact that more women work in part-time roles than full-time, as this is more accommodating to their family commitments. This is more of a reflection of gender roles than the gender pay gap.

Looking ahead: A future without the gender pay gap

Reaching a future of pay equality will require sustained effort and focus. Governments and businesses need to prioritize pay transparency, ensuring salaries are clear, unbiased, and equitable. Equal representation in leadership roles is another crucial step, as promoting more women into decision-making positions can help dismantle systemic barriers. Additionally, supportive workplace policies like paid parental leave, affordable childcare, and mentorship programs will play a key role in levelling the playing field.

While things are heading in the right direction, challenges remain, especially in industries like skilled trades, where deeply rooted gender imbalances persist. Fixing these issues will take a combination of education, mentorship, and thoughtful hiring practices tailored to break down these barriers.

Despite the hurdles, the numbers give us plenty of reasons to be optimistic. We’re steadily moving toward a future where pay, opportunities, and success are based on talent and merit, not gender.