We are now starting to see some of the effects the pandemic is having on the post-pandemic workforce, women in particular. Reports from the US have found that the gender gap has widened year over year. Our executive search recruiter in Toronto, Claire McConnachie, suspects a similar trend is happening in Canada because of the similarities of our economy. Below, we discuss the gender gap growth, why it’s happening, and weigh in on whether it’s a trend to watch or a blip on the radar.
The Gender Wage Gap Is Growing
According to US labour market data, as reported on Fast Company, even though wages increased for all workers last year, they grew faster for men. This caused the gender gap to increase. It is now on par with 2019 rates before COVID-19.
The report found, “In 2023, women working full time earned 83 cents on the dollar compared to men, down from a historic high of 84 cents in 2022. The Census Bureau called it the first statistically significant widening of the ratio since 2003.”
Why is the Gender Wage Gap Growing?
The current widening of the gender wage gap has to do with two main events, according to the report.
The pandemic changed the workforce. Many low-wage earning women were pushed to part-time hours and out of full-time roles.
The other big event during COVID-19 was many women lost their jobs. Even though many have returned to the workforce, many are entering back in with different jobs and at a lower salary than before the pandemic.
These two factors, among others, are key contributors to why there was a growth in the wage gap. Hopefully, this will correct itself in the coming years.
Is The Gender Gap Widening A Trend or a Blip?
Many are still unsure if this is a trend to be concerned about or if it’s a blip. We shouldn’t put too much emphasis on data from a single year. But, it’s still something to pay attention to in the future.
S.J. Glynn, the Labor Department’s chief economist, has this to say:
“It’s too soon to tell whether 2023 was a blip or the start of a worrisome new trend for the gender wage gap. But she said that even a reversion to the pre-pandemic status quo is a reminder of how far behind women were in the first place, and shows how the pandemic slowed the march toward gender equity.”
With the current economic uncertainty, it’s unclear how the gender wage gap will move over the next years.
Previous Articles on the Gender Wage Gap
Salary Expectations Are Sky High Due to Inflation and Salary Transparency. Are Employers Keeping Up?
Wage-Fixing and No-Poaching Agreements Are Illegal In Canada
Study: Women Face Employment Discrimination at Every Age and Career Stage
