A new report reveals that the UK is losing nearly £100 billion annually due to gender inequality in the workplace, with barriers like caregiving, discrimination, and ageism hampering women’s economic participation. This economic loss, a 7% increase from the previous year, highlights the urgent need for inclusive policies and decision-making to address this growing issue.
What is the economic impact of gender inequality in the workplace?
The economic impact of gender inequality in the workplace is profound, with the UK losing nearly £100 billion in Gross Value Added annually. This is due to barriers such as caregiving responsibilities, discriminatory hiring, and ageism, which hinder women’s participation in the economy and contribute to a 7% increase in economic loss from the prior year.
The Economic Cost of Gender Inequality
A new analysis conducted by the Centre for Local Economic Strategies (CLES) and the Women’s Budget Group (WBG) has brought to light the substantial economic repercussions of gender inequality in the workplace. The barriers faced by women, including caregiving responsibilities, discriminatory hiring practices, and ageism, have escalated the economic loss to nearly £100 billion in Gross Value Added (GVA) annually across England, Scotland, and Wales. A concerning seven percent increase from the previous year pinpoints a growing issue that demands immediate attention.
The release of this analysis coincides with the publication of the “Women’s Work” report, a collaborative research project between CLES and WBG. It was recently unveiled at an event hosted at the Platform building in Leeds city centre. The Mayor of West Yorkshire, Tracy Brabin, remarked on the significance of the findings, describing them as “important but terrifying”. This report underlines the urgent need for a more inclusive approach in economic decision-making that fully recognizes the potential and meets the needs of women.
In the report, Dr. Zubaida Haque, deputy director and head of research and policy at WBG, emphasized, “Women are often overlooked in local economic decision-making and the local labour market. This report not only highlights the economic and social cost of this exclusion but also how a gender-inclusive approach to local economic decision-making improves both the economic prospects of women and the local and national economy.”
Gender Inequality and Local Economic Decision-Making
Dr. Haque further delved into the impacts of gender inequality, “Low pay, the lack of guaranteed hours and flexible work and ill-health are holding back women’s labour market participation, taking a toll on their mental health, wellbeing and on the economy. You can’t have a healthy economy without healthy people.” These insights were informed by qualitative research, including focus groups and interviews with women from diverse backgrounds, to flesh out the narrative behind the statistics.
Dr. Sarah Longlands, chief executive of CLES, contributed her perspective, stating, “For too long we’ve been talking about gender equality as if it wasn’t relevant to the question of how we build strong local economies.” She argues for placing the needs and potential of women at the forefront of economic policies. “The analysis we have released today speaks for itself – progress on gender equality has stalled and we need a national effort to reverse the growing level of economic exclusion for women and their families,” Dr. Longlands explained.
The partnership with Leeds City Council has been instrumental in conducting a detailed quantitative analysis of women’s outcomes in the city. Councillor Jonathan Pryor, Leeds City Council’s deputy leader and executive member for economy, culture and education, acknowledged the challenges and the council’s commitment to resolving them. “We are pleased and proud to have partnered with the Centre for Local Economic Strategies and the Women’s Budget Group on this important project,” stated Councillor Pryor. He highlighted the economic disparity faced by women in Leeds and the council’s dedication to addressing these issues through strategic initiatives.
Recommendations for Action and Policy Change
The “Women’s Work” report offers a suite of strategic recommendations for local and regional authorities. These include placing gender equality at the heart of economic strategies, underpinning policies with detailed analyses, and establishing mechanisms for engagement and accountability to women. To enact these strategies, the report outlines actionable steps like bolstering caregiving support, promoting flexible employment, improving education and career progression opportunities, strengthening community connections, supporting wellbeing, and ensuring women’s representation in leadership.
The recommendations extend beyond local governance, suggesting that national government holds significant additional powers to ameliorate gender inequalities. The report functions as a clarion call, seeking to galvanize a concerted national effort to tackle these systemic issues.
Notes to Editors
- The Centre for Local Economic Strategies is the UK’s national organization for local economies, functioning as an independent charity focused on people, place, and planet.
- The Women’s Budget Group is an independent, not-for-profit network comprising women’s organizations, academics, and policy experts, advocating for a gender-equal economy.
- For additional information and press inquiries, the contact details for both organizations are available on their respective websites.
Centre for Local Economic Strategies (CLES)
Women’s Budget Group (WBG)
By shedding light on the stark realities of gender inequality in the workplace and its detrimental economic effects, this report serves as a crucial foundation for policymakers and stakeholders across the UK. The message is clear: Both the well-being of individuals and the health of the economy are at stake, and the time for transformative change is now.
- The UK is losing nearly £100 billion annually due to gender inequality in the workplace, highlighting barriers like caregiving, discrimination, and ageism.
- This economic loss represents a 7% increase from the previous year, emphasizing the urgent need for inclusive policies and decision-making to address the issue.
- The analysis by the Centre for Local Economic Strategies and the Women’s Budget Group reveals the substantial economic repercussions of gender inequality, with barriers like caregiving responsibilities contributing to the loss.
- The “Women’s Work” report emphasizes the need for a gender-inclusive approach in economic decision-making to improve the economic prospects of women and the overall economy.
- Recommendations in the report include strategies such as bolstering caregiving support, promoting flexible employment, and ensuring women’s representation in leadership roles to address gender inequalities at the local and national levels.