The COVID-19 pandemic has had a profound impact on various aspects of life, including the economy, health, and social structures. One area that has been significantly affected is the gender pay gap. The pandemic has not only highlighted the existing disparities but has also exacerbated them. This article will explore how coronavirus is widening the UK gender pay gap, the importance of gender pay gap reporting, and why there is a gender pay gap in the first place.
Understanding the Gender Pay Gap
The gender pay gap refers to the difference in average hourly earnings between men and women. It is a complex issue that is influenced by a variety of factors, including occupational segregation, part-time work, and discrimination. The gender pay gap is not just a social issue, but also an economic one. It affects women’s financial independence, retirement savings, and overall economic growth.
Impact of COVID-19 on the Gender Pay Gap
The COVID-19 pandemic has had a significant impact on the gender pay gap in the UK. The crisis has disproportionately affected women, particularly in terms of job losses and reduced working hours. This is largely due to the fact that women are overrepresented in sectors that have been hardest hit by the pandemic, such as hospitality, retail, and care work.
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According to a report by the UK Women’s Budget Group, women were about one third more likely to work in a sector that was shut down due to the pandemic compared to men.
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Women are also more likely to have taken on additional unpaid care work as a result of school closures and increased needs of older or disabled relatives. This has further reduced their ability to work and earn.
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The furlough scheme, while beneficial in many ways, has also contributed to the widening gender pay gap. Women were more likely to be furloughed than men, and while on furlough, they received only 80% of their usual pay.
These factors have all contributed to how coronavirus is widening the UK gender pay gap.
Gender Pay Gap Reporting
Gender pay gap reporting is a crucial tool in addressing this issue. It involves employers with 250 or more employees publishing data on their gender pay gap. This includes the difference in average hourly wage, bonus pay, and the proportion of men and women in each pay quartile.
However, due to the pandemic, the UK government suspended the enforcement of gender pay gap reporting for the 2019/2020 reporting year. This has raised concerns about the lack of transparency and accountability, and the potential for the gender pay gap to widen further without proper monitoring and action.
Why is There a Gender Pay Gap?
Understanding why there is a gender pay gap is key to addressing it. Some of the main reasons include:
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Occupational segregation: Women are often concentrated in lower-paid sectors and occupations. They are also less likely to be in senior or high-paying roles.
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Part-time work: Women are more likely to work part-time, often due to caring responsibilities. Part-time work is generally lower paid and has fewer opportunities for progression.
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Discrimination: Despite legislation, discrimination still plays a role in the gender pay gap. This can include direct discrimination, such as paying women less than men for the same work, as well as indirect discrimination, such as practices that disadvantage women.
Addressing the Gender Pay Gap
Addressing the gender pay gap requires a multi-faceted approach. This includes promoting gender equality in the workplace, supporting women in higher-paid sectors and roles, and addressing the unequal distribution of unpaid care work. It also involves strengthening and enforcing gender pay gap reporting.
While the COVID-19 pandemic has exacerbated the gender pay gap, it has also highlighted the urgent need for action. By understanding and addressing the factors that contribute to the gender pay gap, we can work towards a more equal and fair society.
