The importance of diversity and inclusion in the workplace cannot be overstated. Studies suggest that businesses that embrace and promote gender equality experience improved productivity and innovation, benefit from diverse perspectives, enhance their company reputation, and even perform better financially.
In recent years, U.S. companies have made significant strides in improving gender equality by crafting policies that address the gender pay gap. Do these changes signal a positive outlook for female empowerment in the workplace? Is the wage gap between men and women narrowing and closing within our lifetime? This infographic will take a closer look at what the latest data and statistics have to say!
10 Fascinating Statistics About the Gender Pay Gap in 2022
What Is the Gender Pay Gap?
If you’re unfamiliar with the gender pay gap, it is a phenomenon that illustrates the inequality between how much men and women are paid. Ideally, regardless of gender, workers would be paid equally for equal work. However, numerous studies have found that the gender pay gap persists. Women who have equivalent experience and qualifications and perform the same role are often paid 1% less than their male counterparts.
In 2022, women earn $0.82 for every dollar that men make, regardless of job type, industry, years of experience, and other factors. However, when all factors are accounted for, meaning that a man and a woman will have the same qualifications and job title, the gender pay gap is $0.99 for every dollar a man makes.
Factors Influencing the Gender Wage Gap
Differences in Economic and Job Opportunities
Over the last decades, significant progress has been made to reduce the effects of gender inequality, with most countries embracing the advantages of having women in the labor force. However, much work is still needed to eliminate the wage gap between men and women entirely.
In their 2022 report, the World Bank stated that 2.4 billion women worldwide are not given equal economic opportunities. Over 178 countries maintain legal barriers that prevent women’s full participation in labor. Many women also face job restrictions in at least 86 countries, while 95 countries do not guarantee pay equality in the workforce.
The “Motherhood Penalty”
Another factor that affects the gender pay gap is the “motherhood penalty,” where women earn less because of the expectations placed on them to become mothers and caretakers. Upon having families, many women leave the workforce to focus on raising their children, which is an expectation not often placed on fathers.
Women often face a wage penalty when they decide to re-enter the labor market because they spend time off the workforce while caring for their children. Also, unlike men, women’s incomes usually decrease because they reduce their working hours to take on childcare and household responsibilities. Payscale’s research found that women without children earn as much as their male counterparts, suggesting that having a child is likely the primary cause of the gender wage gap.
Is the Gender Pay Gap Persisting?
On Young Women Closing the Wage Gap
Thankfully, there are some signs that the gender pay gap is slowly becoming a thing of the past. According to recent studies by Pew Research, young women (under the age of 30) earn as much as or more than their male counterparts in 22 out of 250 metropolitan areas in the U.S. Women earn the most from New York, Los Angeles, and Washington, D.C.
The Philippines as a Haven for Gender Equality
Some countries are also addressing the gender wage gap better than others. One example is the Philippines, the top-performing country in Asia regarding gender equality. In the World Economic Forum’s recent report, the country reportedly closed 78.4% of its overall gender pay gap.
The Philippines is one of the few countries to have addressed its gender gap in senior roles and technical positions. However, the country is still lagging in political empowerment for women, with too few female members of parliament and even fewer women ministers.
Investing in the Female Workforce and Closing the Gender Pay Gap
Due to COVID-19 and the subsequent “Great Resignation” movement, more than 3.5 million women exited the workforce. Many working moms had to prioritize caring for their children during the pandemic, as schools closed, and they had to balance working remotely with their family responsibilities.
As U.S. businesses struggle with a tight labor market, finding new and innovative ways to attract and retain talent has become essential. One way to expand your workforce while also helping to narrow the gender wage gap is by recruiting and investing in female workers.
To reach this specific group, companies must know what women want in a job. Competitive pay is not enough. Businesses may need to re-evaluate their hiring practices to eliminate gender bias in assessments and interviews or offer childcare benefits to help more working moms achieve work-life balance.
Read More: Top 5 Ways the Women Workforce Can Help Rebuild Your Company Amid ‘The Great Resignation’
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The way to eliminate the gender pay gap is by encouraging more companies to realize the advantages of investing in the female workforce. Be a business that embraces and advocates for women in the workplace. If you need help building your dream team while being mindful of diversity and inclusion, turn to the professional team at SuperStaff.
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