Jersey and Guernsey sees increase in workplace gender inequality

The gender pay gap in Jesey and Guernsey has been calculated at 21% by PwC

Workplace gender inequality in the Channel Islands increased between 2017 and 2019, according to a new report.

Jersey fell from 20th to 24th and Guernsey from 14th to 19th of 35 jurisdictions examined in the Channel Islands Women in Work Index.

The report said at 21%, the gender pay gap for the islands would rank among the highest in the member countries of the Organisation for Economic Cooperation and Development (OECD).

This is 5% higher than the UK.

Only Estonia, South Korea and Japan have a larger disparity.

The report was produced by accounting firm PwC as a supplement to their analysis of the 33 countries who make up the OECD.

It calculates the gender pay gap by subtracting the median female income from the median income for men.

Other variables used to calculate the overall ranking are the female labour force participation rate, the gap between the male and female labour participation rates, the female unemployment rate and the share of women in full-time employment.

'Massive economic enabler'

The report said the decline was down to other jurisdictions "moving further and faster" in improving gender quality, while Jersey and Guernsey "remained much the same" over the two years.

However, it confirmed that both islands outperformed the OECD average in both female participation in the labour force and unemployment rates.

The report argues increasing the female employment rate to match Sweden's could raise GDP by 5% a year, around £176m, in Guernsey and £259m in Jersey.

It concluded the disparity between male and female pay was "so high" because men still hold the majority of senior and best paid roles with local businesses, especially within the critical financial services industry.

Layla Yildrim, one of the reports co-authors, said achieving greater gender equality could be a "massive economic enabler and a way to boost prosperity and growth".

She said: "We need to get away from the notion that diversity and inclusion is just about equality, it's a compelling business imperative in our islands where access to talent and skills is an ongoing challenge that will only increase in years to come."

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