the gender wage gap: why is there still a gender wage gap

In the modern era, women have made significant strides in breaking the glass ceiling, but the quest for gender parity in the workplace is far from over.

In 2022, Statistics Canada reported that women held 30.6% of seats in the national Parliament. 

While this represents progress, Canada still grapples with the persistent issue of the gender wage gap. In the 2023 Global Gender Gap Report by the World Economic Forum (WEF), Canada ranked 30th out of 146 countries. 

This indicates that despite some improvements, achieving gender parity in the Canadian workforce remains a formidable challenge.

At the heart of this issue lies the stark reality that women in Canada hold approximately 35.6% of management occupations and 30.9% of senior management-level positions, as reported by Statistics Canada's "Just the Facts: International Women's Day 2022." 

In order to grasp the full picture of gender parity in the workplace, it's essential to delve into the evolving dynamics of the global labour market.

evolving gender gaps in the global labour market

Statistics Canada reveals that women in the country currently earn approximately 75% of what their male counterparts earn.

This disparity is even more pronounced for Indigenous women and women of colour, who work just as diligently—if not harder—when considering the unpaid work they often undertake in their personal lives. 

Globally, Canada's gender pay gap is more than double the global average. If current trends persist, it will take another 95 years to close this wage gap fully. 

In other words, true gender parity remains a distant horizon.

The state of gender parity in the labour market is a complex challenge. While women's participation in the workforce has increased slightly, other economic indicators reveal substantial disparities between genders. 

Although women have reentered the labour force at marginally higher rates than men, resulting in a modest recovery since the 2022 edition, significant gaps persist across various dimensions.

Between the 2022 and 2023 editions, the labour-force participation rate parity increased from 63% to 64%. 

This positive shift represents a significant step forward, but it is just one facet of the multifaceted issue at hand.

the uneven playing field: starting behind and staying behind

Starting from their first post-graduation jobs, women often earn less than their male counterparts despite performing the same or equivalent work. 

These initial positions place them at a disadvantage, and they often need help to catch up due to limited opportunities for growth and development. 

This disparity is glaringly evident in the underrepresentation of women on corporate boards.

While progress toward gender diversity and inclusion in leadership roles is evident, significant gaps in the representation of diverse women in professional settings persist. 

In order to narrow disparities, women must be given equal opportunities to access leadership roles, close wage gaps, and participate more fully in the workforce.

the socioeconomic benefits of gender parity

Gender parity in the workplace isn't a matter of equality; it has far-reaching socioeconomic benefits. 

Communities and countries thrive when women earn more, contributing not only to their personal well-being but also to increasing revenue and stimulating economic growth. 

However, recent data from RBC Economics in 2022 showed that ten times more women than men in Canada had left the labour force since 2020, emphasizing the urgency of addressing this issue.

According to the Organisation for Economic Co-operation and Development (OECD) in 2022, there is a 16.1% difference in annual median earnings between women and men who work full-time, favouring men. 

Canada ranks eighth worst in the world regarding the gender pay gap. These statistics underscore the need for concerted efforts to close the gap effectively.

why do women still earn less?

Many factors, including outdated attitudes and beliefs, contribute to the persistent wage gap. 

Some employers, and even some women themselves, consider it normal for women to earn less than men, accepting it as a workplace reality. 

Maternity leave often serves as a significant detour in a woman's career trajectory, one that many never fully recover from. 

Childbearing typically occurs during the crucial years when career paths are established and ascending. 

As a result, women face the difficult choice between family and career, with the stress of trying to 'have it all' a topic worthy of future exploration. 

Despite narrowing education gaps and increasing numbers of women earning postsecondary and graduate degrees, certain occupations remain male-dominated, leading to lower-paying and lower-status jobs for women.

closing the gap: practical steps towards parity

Sarah Kaplan, a professor of strategic management at the Rotman School of Management at the University of Toronto, offers a viable solution to the wage gap. 

She suggests that organizations should conduct thorough salary analyses to identify inequalities.

Once these disparities are identified, companies should take steps to rectify them, even if it means implementing incremental changes. 

This approach distinguishes organizations genuinely committed to wage equality from those merely paying lip service.

Moreover, salary transparency is a powerful tool to create an environment where everyone feels empowered to ask for equal pay for equal work. 

When employees know what their colleagues earn, it fosters a sense of fairness and accountability within the workplace, making wage parity more achievable.

dispelling myths surrounding the wage gap

Some argue that the gender wage gap is a myth, contending that statistics are being misinterpreted to support political agendas that advocate for greater government intervention in the employer-employee relationship through additional legislation. 

Others claim that women are responsible for their own struggle, attributing the gap to career choices, working hours, and time off. 

They argue that men earn more because they simply work more hours, not necessarily harder.

While these viewpoints offer alternative perspectives, engaging in constructive dialogue rather than divisive debate is essential. 

The quest for wage parity should be a collective effort, with individuals, organizations, and policymakers working together to address the multifaceted challenges women face in the workplace.

The journey toward gender parity in the workplace continues, with challenges to overcome.

Although there's been progress, fully closing the gender wage gap is a work in progress. We need a multifaceted approach, including salary analyses, transparency, and debunking myths about the wage gap. 

Working together can pave the way for future generations to enjoy equal opportunities and fair pay. With persistent efforts, gender parity may arrive sooner than expected. 

Stay tuned for more insights on supporting women in the workplace.

It might be interesting to share these points of view with your female colleagues, but a word of warning: make sure you’re standing a safe distance away.