How The Gender Pay Gap Has Changed Through The Years
We studied data from 1970-2017 to understand how pay inequality has changed over the last 47 years. This would give us a clear picture of the working life of a person who began working in 1970 at age 18 and retired in 2017 at age 65.
Throughout their working life, the gender pay gap has reduced, with significant progress being made throughout the years. In 1970, men earned a massive 84% more than women on average.
By 2017, this figure had reduced dramatically but was still at 25%.
Although public awareness of the gender pay gap has exploded over the last 5 years, unfortunately, progress has slowed significantly. The pay gap has reduced by just 1% from 2012 (126%) to 2017 (125%).
If the improvements made over the last 5 years continue at the current rate, the gender pay gap would not disappear until the year 2142.
Although the conversation is now more open than ever, which is clearly a good thing – the figures suggest that little progress is being made on the issue.
The Average Pay of Men vs Women in 2017
The average pay for a man in the UK is £37,512.80 per year, with women earning £30,113.20 on average. This represents an extra £7,399.60 per annum – This is the equivalent of 13 weeks of the average UK household spending in 2017 according to ONS.
The reduced pay effectively means that women are ‘working for free’ from October 21st.
The Total Cost Of Lost Earnings For Women
Although percentages and annual lost earnings make for some shocking statistics, the bigger picture shows the true scale of the inequality.
For a woman of 18 who began work in 1970 and received the national average income for a female each year, the total lost income by 2017 is £234,702 less than her male counterpart. Based on these figures man would be able to retire over 8 years earlier and would still have earned the same amount over the course of their career.
Regional Differences in Pay Inequality
Although the gender pay gap is a national problem, the issue is worse in some constituencies than others.
Men in Derby South earn a shocking 41.1% more than their female counterparts – a figure not seen nationally since 1992.
Although Derby South is shockingly above the national average, they are not alone. Below is a table of the top 25 constituencies with the biggest pay inequality nationally.
Source: All data sourced from ONS