Employing women can significantly increase productivity

By: Trademagazin Date: 2025. 03. 07. 11:33

The 12th edition of PwC’s Women in Work (WiW) report examines gender equality in the workplace across OECD countries. While the findings suggest positive progress, the transformative impact of current economic, demographic and political trends – including stagnant growth, declining fertility rates and the challenges of an ageing population – and the Fourth Industrial Revolution driven by artificial intelligence are already having a tangible impact on workplaces. The rise of the anti-DEI (Diversity, Equality, Inclusion) movement is also having an impact, with many organisations reassessing or even reversing their diversity commitments and promises.

The gender gap persists

The PwC Women in Work Index measures progress on gender equality in the workplace across 33 OECD countries. The Index contains five indicators that measure different aspects of gender equality in the labour market. While all countries have made progress over the past decade, the analysis highlights that the gender gap in the workplace remains persistent. Since 2011, the average index score in the OECD has increased from 56.3 to 69.0 in 2023, with much of the improvement compared to 2022 driven by an increase in female participation from 72.1% to 72.7% and a reduction in the gender pay gap from 13.5% to 13.1%.

Based on the historical rate of progress observed between 2011 and 2023, it would take approximately 46 years to close the gender pay gap in OECD countries.

Unless the EU Pay Transparency Directive, which will start a new era in the EU in 2026, speeds up the process. In addition to a transparent pay structure, the regulation imposes a number of other obligations on employers starting next year – from recruitment to talent management to compensation strategy – with the aim of reducing the gender pay gap and promoting equality in the workplace by increasing the transparency of pay and job evaluation systems.
“Fair pay and equal opportunities are based on objective, transparent and well-communicated HR processes. This benefits not only women and disadvantaged groups, but the entire company, creating a more committed and motivated workforce,”

pointed out Márta Reguly, head of the HR consulting team at PwC Hungary.

Workplace equality boosts GDP

The average score for OECD countries has risen by 13 points since 2011 to 69, driven by increased female labor force participation and a narrowing of the gender pay gap.

PwC’s analysis, focusing on the impact of female participation on productivity growth, identified a positive correlation between women’s participation in the workplace and countries’ economic performance. GDP per hour worked in OECD countries increased by an average of $0.19 between 2011 and 2023, representing an average annual GDP increase of $4.5 billion per country.

If progress towards full gender equality in the workplace continues at the same pace over the next five years, total productivity gains could reach $54.5 billion (£43.5 billion) in UK GDP by 2030, compared to $31.6 billion for the average OECD country and $105.5 billion for the G7.

Phillippa O’Connor, Deputy CEO of PwC UK, said: “The positive link between gender equality in the workplace and economic growth shows that investing in gender equality is not only the right thing to do, it is also the best thing economically. The benefits of a larger and more diverse workforce are directly reflected in GDP growth, as it enriches corporate diversity and the overall income base.