When women work outside the home and do most of the domestic work, their health suffers. Generally, the gender wage gap can be an economic issue as it tends to make women rely more on welfare assistance, especially during old age. When employers are open about their payscales and criteria for evaluating raises and promotions, employees can make informed decisions about whether they are being paid fairly and whether it is appropriate to negotiate for a higher salary or promotion. Women are often blamed for the gender pay gap Some people argue it's women who need to ask for a pay rise or push themselves forward in order to get ahead. Overall, a lifetime of pay inequality between women and men means that women are disproportionately retiring into financial insufficiency and even poverty (Moyser, Statistics Canada, 2019). Men with disabilities aged 15 or older who worked mainly full-time in 2010 reported $45,080 of personal income, on average (Burlock, Statistics Canada, 2017). According to Statistics Canada womxn workers in Canada earned an average of 84 cents for every dollar earned by men in 2019. The topic attracts significant investor interest, and regulation is also increasing, meaning this is both a brand and financial issue (Baker McKenzie). If youre thinking of retiring early, theres plenty to consider. Weve rounded up the Best life in Canada, with the best promotions, and the best sign-up bonuses, to help you maximize your benefits. Ineffective equal pay legislation, womens overall paid working hours, and barriers to entry into the labor market are all factors that contribute to pay disparities (such as education level and single parenting rate). Analytical Studies Branch Research Paper Series, no. The conditions for getting promotions and benefits should be stated plainly to avoid misunderstandings. Ottawa: Statistics Canada. The gender wage gap leaves women at a disadvantage, making it harder to pay bills or have savings for unexpected emergencies. The gap widens even further for racialized women, who make about 32% less than non-visible minority women (Longpr-Verret and Richards, Statistics Canada, 2021). According to a Pay Equity Strategist at Payscale, the gender pay gap in these industries can be attributed to lower representation of women in more senior, higher-paid roles as well as gender stereotypes around womens proficiency in math and science. Opinions expressed on this blog are NOT endorsed by the reviewed brands. It impacts all parts of our lives, including employment and compensation. According to Statistics Canada (2022), as of 2021, the gender pay gap for full-time and part-time employees is 0.89, which means women make 89 cents of every dollar men make.The gender pay gap for full-time employees is 0.90, which means women make 90 cents of every dollar men make. Required fields are marked *. This is the case even in some of the worlds most equal societies, like Scandinavia (Kaplan, 2018). Women's Earnings: The Pay Gap (Quick Take) Mar 11, 2022 English GLOBAL Women Continue to Experience Gender Wage Gaps Worldwide Among OECD countries, the overall gender wage gap as of 2019 was 12.5%.1While the average appears close to parity, there can still be a large variation between countries. Registered Charity #12985-5607-RR0001. So far, the gender gap pay is the sad reality of many working-class women. Read the pros and cons here. Well, in Canada, the gender wage gap has barely budged in a decade. Pay gaps also exist among visible minority groups. Women are more vulnerable to low income than men in Canada, partially due to the gender pay gap (Fox and Moyser, Statistics Canada, 2018). What is the impact of the gender pay gap in academia over the course of a career and retirement? Whats the motherhood penalty and fatherhood bonus? As a result, women prefer to pick lower-paying occupations since they have more flexibility in their schedules than males. While still grim, these numbers have been showing improvement. Many of the women working in these sectors are racialized, immigrant, migrant, and/or undocumented. The Commercial Real Estate Women Network (CREW Network) released a 2020 survey of real estate professionals in the US, Canada, and the UK that shows that there have been some improvements for women in real estate. In the present article, the analysis is restricted to the 23-year period of 1998 to 2021. Gender inequalities in credentials, discrimination, overall salary structure, and differences in payment across industrial sectors all impact the gender pay gap. Transparency comes to play when it comes to audits. Even though women enter professional schools to the same proportion as men, have a labour force participation rate of 82%, and are beginning to assume the breadwinner role at double the rate as they did in previous years, theres still a 16.1% difference between annual median earnings of women relative to the annual median earnings of men in Canada. While the above-noted factors were important, nearly two-thirds of the gender wage gap in 2021 was unexplained by standard controls for human capital, job attributes, occupation and industry, and demographics. In 2021, female employees earned 11.1% less per hour than male employees, with the wage gap little changed compared with 2020. Though there are more women in the industry, in 2020, the difference between . On the other hand, Yemen has the highest gender pay gap, followed by Pakistan, Iraq, and Syria. Nonetheless, most gender pay gaps are not calculated based on their types. Jodie Primeau, who works at Deep River, Ontarios Primeau Law Professional Corporation, stated that gender wage segregation, the way others treat women in the law firm and how customers view women lawyers all play into the gender wage gap. In general, the gender pay gap refers to the difference in average earnings of people based on gender. The earnings gaps between sexual minorities and heterosexual men were substantial: heterosexual men were found to earn the most ($55,959), followed by gay men ($50,822), lesbian women ($44,740), bisexual men ($31,776), and bisexual women ($25,290) (Social Research and Demonstration Corporation, 2021). Despite the slight growth, the gender wage gap in Canada is still present. In its ranking of countries, Canada has the eighth worst gender pay gap. When the Pay Equity Act was passed in 1987, the gender wage gap was 36%. While these trends are associated with a reduction in gender differences in pay in Canada, women aged 15/16 years and older earned from $0.69 to $0.89 for every dollar earned by men in 2017, depending on how the gender pay gap is measured. Skeptics of the gender pay gap exist, even though there's extensive research proving it's real. What country has the biggest gender pay gap? Here are its recommendations. CPI values are from Statistics Canada Table 18-10-0005-01: Consumer Price Index, annual average, not seasonally adjusted. Generally, the wage gap can be measured differently, although the most prominent method is evaluating the full-time, full-year wages. In spite of the high wage premiums, women comprise a mere 14% of jobs in the trades. Research shows that when women make up a large percentage of a specific industry, the wages they get paid tend to fall (Levanon et al., 2009). Other factors that can contribute to the gender pay gap in Canada include: Since womens family obligations seem to have a longer-term impact on working mothers wages, encouraging a fair allocation for childcare obligations between the two parents and more engagement by fathers would be beneficial. Alternatively, you can review the gender wage gap based on hourly wages. Heres everything you need to know before you buy a policy. In other words, you can achieve pay equity, but unless you close the representation gap at all pay levels, you will continue to have a gender pay gap.. Here's how to convince the deniers. Freelance writer specializing in personal finance and travel content, Cost of Living for International Students, Organization for Economic Cooperation and Development, How to Become a Private Investigator in Canada. Beginning in January 1997, information is collected on the usual wages or salaries of employees at their main job. This requirement also contributed to female professors getting more raises. The gender pay gap is alive and well in Canada and many other advanced economies, according to a new global study by job search giant Glassdoor. There are some factors that related . And this, in combination with other gendered stressors, takes a personal toll. Institute for Gender and the Economy (2019) says: People looking to get ahead in their jobs must often work long hours, but the gendered allocation of family responsibilities prevents women from being able to do this. In 1970, the UK had a 47.6% difference between the median earnings of men and women, while as of 2016, the difference was 16.8%. Traditional womens work tends to pay less than traditional mens work. Jobs seen as womens work can be undervalued because they parallel domestic work women are expected to do for free (Ontario Equal Pay Coalition). Build your investment portfolio and save on fees. The Ontario Equal Pay Coalition focuses on the average annual earnings because it addresses the full picture of womens economic inequality. Gender refers to the characteristics associated with women/girls and men/boys. This factor causes them to fall behind in the labor market. For example, women executives make about 56% less on average than men executives. More information on the analysis of the gender pay gap can be found in the publication: The gender wage gap in Canada: 1998 to 2018. Women workers are also more likely to be employed in lower-wage occupations and lower-paid industries (Schirle and Sogaolu, 2020). Womens higher rate of part-time work contributed notably to the gender wage gap in 2021, because part-time work offers lower pay, less job security, and fewer benefits than full-time employment. Many trades environments are unwelcoming to women, with barriers to entry ranging from lack of mentorship opportunities to a culture of rejecting workers who must leave by 5pm for childcare responsibilities. Its one of the root causes of gendered poverty. It means that when a male worker is to earn $1.00, a female worker is to earn only 72 cents. Over this period, the share of men working in construction (-0.6 percentage points to 11.9%) and manufacturing (-1.3 percentage points to 14.3%) declined. Every year, the Ontario Equal Pay Coalition and gender justice organizations and advocates mark Equal Pay Day, which symbolizes how far into the year the average woman must work in order to have earned what the average man had earned the entire previous year. Many measures in concert can help end the gender pay gap, including: enforced pay equity legislation across sectors and workplaces, increasing the minimum wage, and universal childcare (UFCW Canada). Whether this is because employers see fathers as harder working or more committed than non-fathers is up for debate and further study, but the fact remains that career costs of parenthood are largely placed on women (Agopsowicz, RBC Economics Research). Gender wage segregation is where people view certain jobs as acceptable for women such as roles as assistants, receptionists and clerks. The way others treat women in the law firm impacts their wages in that in corporate law, they may end up with tasks like research letters rather than legal documents. Here is some information about the gender wage gap in Canada and some suggestions on how to eliminate it. The result? This new law is an important tool in promoting gender equality, closing the gender wage gap and contributing to greater equity and inclusion in Canada. Moyser and Burlock, Statistics Canada, 2018, Institute for Gender and the Economy (2019), Longpr-Verret and Richards, Statistics Canada, 2021, Pelletier et al., Statistics Canada, 2018, Social Research and Demonstration Corporation, 2021, Macdonald, Canadian Centre for Policy Alternatives, 2018, Gender Wage Gap Strategy Sterring Committee, 2015, Institute for Womens Policy Research, 2020, Indigenous women working full-time, full year earn an average of 35% less than non-Indigenous men, or 65 cents to the dollar (, racialized women working full-time, full-year earn an average of 33% less than non-racialized men, or 67 cents to the dollar (, newcomer women working full-time, full-year earn an average of 29% less than non-newcomer men, or 71 cents to the dollar (. Due to rounding, estimates and percentages may differ slightly between different Statistics Canada products, such as analytical documents and data tables. Occupations are coded according to the National Occupational Classification (NOC) 2016, while industry coding is based on the North American Industry Classification System (NAICS) 2017. The gender pay gap is worse for those who face multiple barriers, including racialized women, Indigenous women, and women with disabilities. The wage gap is calculated as: Statistics Canada, Labour Force Survey, 1998 to 2021 and Labour Force Survey Supplement, 2021. When it comes to provinces within Canada, some are doing a better job than others. There have also been several studies that show that providing more flexible working hours may benefit organizations by increasing employee engagement and productivity. Equitable pay-related legislation includes the Pay Equity Act, which applies to some federally-regulated employers and parliamentary institutions, the Employment Equity Act, the Canadian Human Rights Act, and various provincial and territorial human rights laws (Ontario Equal Pay Coalition). Subscribe to CNBC: cnb.cx/SubscribeCNBC About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. The pandemic made the gender pay gap worse, especially for women of color. Evidence shows that diverse organizations outperform their peers. The gender wage gap is the difference in average hourly earnings between men and women expressed as a proportion of mens average hourly earnings. The Equal Pay Coalition compiled four steps to close the gender wage gap in Canada. In 2018, the largest factors explaining the gap were the distribution of women and men across industries, and womens overrepresentation in part-time work. But nearly two-thirds of the gap was unexplainedfor this portion, possible explanations include gender differences in work experience, as well as unobservable factors, such as any gender-related biases (Pelletier et al., Statistics Canada, 2018). On average, women working full time, full year earn 75 cents for every dollar earned by men. Historical trends, 1998 to 2021 Among employees aged 25 to 54, the gender wage gap decreased 7.7 percentage points to 11.1% from 1998 to 2021. Read on to learn how to survive a recession. Experience special sneak peeks of your . In contrast, Chinese employees aged 25 to 54 ($33.83) earned about the same per hour as non-visible minority employees ($33.44). Save my name, email, and website in this browser for the next time I comment. According to an ADP and Leger (2021) self-report survey, womens pre-tax salaries remain 21% lower than mens, while additional variable compensation, such as bonuses, profit-sharing or equity agreements, are where disparity surges, with Canadian working women earning 43% less in additional compensation compared to men in 2020.. Crafting trans-inclusive policies and programs (e.g., review company dress code, eliminate gender-specific language). According to Statistics Canada (2022), as of 2021, the gender pay gap for full-time and part-time employees is 0.89, which means women make 89 cents of every dollar men make. Despite the slight growth, the gender wage gap in Canada is still present. The controlled gender pay gap is $0.99 for every $1 men make, which is one cent closer to equal but still not equal. Whats in it for us? Data from the year 2018 from Statistics Canada displayed the economic disparities between women and men. In many workplace environments, employees refrain from speaking about their salaries for fear of reprisal from their employers. Statistics Canada (2019) notes that you can calculate the gender pay gap by comparing average annual earnings, comparing full-time and full-year average annual earnings, or hourly wages. Yes, I want to take action and make a difference! However, our team strives to bring you quality, unbiased information. The circumstance of how women are socialized to accept certain kinds of work could potentially lead them to make less money. Women are typically observed to be underpaid in comparison to their male counterparts. Canada has the sixth-largest unadjusted gaps (16.1%) in base pay between men and women of the eight countries surveyed. . As the Canadian Womens Foundation reported in 1950, about 21.6% between the age range of 25 to 54 had employment. As a result, jobs requiring employees to work long hours produce some of the largest wage gaps.. The reduction in the gender wage gap from 1998 to 2018 is largely explained by changes relating to three factors: the distribution of men and women across occupations; womens increased educational attainment; and the decline in the share of men in unionized employment. If its illegal to pay people differently based on gender, why does the gender pay gap exist? Under this Act, employers must create a pay equity plan that compares the compensation between predominantly female and male job classes doing work of equal or comparable value. Kareena Maya is a freelance writer focused on the personal finance and travel spaces. This brings us to how we can eliminate gender gap payment. Specifically, the average hourly wages of female employees increased 28.6%, while mens increased 17.4%. Immigrant Economic and Social Outcomes in Canada: Research and Data Development at Statistics Canada. Spread its campaign materials regarding the gender wage gap on social media. It is a widely recognized indicator of women's economic equality, and is measured by comparing annual earnings of women full-time, year round, to working men. 374 Words 2 Pages. Despite earning degrees and working in fields having a much higher income, women are still earning half of their male counterparts instead of earning the same amount. And men are highly represented in trades, manufacturing, and natural and applied sciences, which tend to be well-compensated and more likely to benefit from union protections (Statistics Canada, 2022). He frequently writes about credit cards, banking, student loans, insurance, travel rewards and more. According to Statistics Canada, three high-paying and male-dominated sectors in particular have contributed to the gender pay gap between 1998 to 2018: construction, manufacturing, and mining, quarrying, and oil and gas extraction. These industries, most of which have a higher percentage of working women than men, would be the biggest offenders according to the 2022 Gender Pay Gap Report by Payscale: The reason? In the past 70 years, women have joined the workforce in increasing numbers, despite it previously including mostly men. Therefore, organizations need to review details that have to do with promotions to suit both genders. Please contact us and let us know how we can help you. The European Union defines the Gender Pay gap as the difference between men and women's hourly earnings (OECD, 2012). Opinions expressed on this blog are NOT endorsed by the reviewed brands. Twenty-two per cent of women who were away during the work week listed family responsibilities as the cause, compared with only 9.3% of men (Moyser, Statistics Canada, 2017). The gap is wider than 25 per cent for women who face multiple forms of discrimination, including Indigenous women, women with disabilities, newcomer women, and racialized women. If your employer is unable to reach your salary expectationsand even if theyre able toinquire about a bonus or more vacation time. According to Statistics Canada (2020), women at every age are more likely than men to describe their days as quite a bit or extremely stressful. If youre a man, realize this imbalance still persists and find out how you can help alleviate the disparity at home and at work. The Gender Pay Gap Across Canada - Equal Pay Coalition Home The Gender Pay Gap Across Canada The Gender Pay Gap Across Canada Pay Equity Legislation across Canada Six Canadian provinces-Manitoba, New Brunswick, Nova Scotia, Prince Edward Island, Ontario, and Quebec-have enacted specific pay equity legislation. The gender wage gap is the difference between wages earned by men and wages earned by women. Encourage political candidates to advocate for womens rights. For every dollar a man receives, a woman earns 87 cents, which is a difference of $4.13 per hour if a man makes $31.05 and a woman makes $26.92. Although the gender gap in hourly wages declined from 1998 to 2021 among employees in Canada, male employees continued to have higher hourly earnings than female employees in 2021. The Toronto Star, a news site, suggested four steps to eliminate the wage gap. Jacara Watkins Unfortunately, the gender pay gap, or difference in income between women and men, persists. Still, wage gaps occur across all sectors and all education levels (Lambert and McInturff, 2016). Canadas recent requirement for public-sector salary disclosures was found to have decreased the gender pay gap at universities from 15% to 4%. Any time you click to our partner websites or register for a product or services through an affiliate link on our website, we may earn a commission at ZERO cost to you. Every province/territory in Canada has aquasi-constitutional human rights codethat outlaws gender discrimination. The reality that women earn less after becoming parents is connected to job shifts for positions with more family-friendly hours and policies. In legislation, pay transparency requires employers to disclose the wage structures in their workplaces, and helps to enforce existing human rights laws and promote gender equality (Ontario Equal Pay Coalition). The number increased to 82% in 2015. The awareness brought to the gender pay gap in the last few years has been a great step in helping to address it. Heres how to manage it. All racialized women made 59.3% of what white men made, Black women made 58.5% of what white men made, South Asian women made 55.1% of what white men made, and Chinese women made 65.4% of what white men made (Catalyst, 2022). The information provided on this website does not constitute financial or professional advice. Here are a few reasons why women are still making less than men in North America and ways to alleviate the problem. Another example of wage disparities is a report from Robyn Doolittle, a writer for the Globe and Mail who reported that in February, women made 25% less than their male peers who made $200,000. Women are more vulnerable to low income than men in Canada, partially due to the pay gap. As I mentioned, it impacts all life stages . Prompt companies to offer sufficient paternity leave and encourage fathers to take that paternity leave. According toself-reported survey statistics, women continue to earn 23% lower total income (pre-tax pay and other compensation) than men. Here's how to manage it. It is also important from a talent perspective, as candidates may view it as a indicator of whether the employer has an inclusive culture that will provide a level playing field in terms of opportunity. Her Majesty the Queen in Right of Canada as represented by the Minister of Industry, 2022. Generally, the wage gap can be measured differently, although the most prominent method is evaluating the full-time, full-year wages. The ability to openly discuss compensation can bring awareness to any form of discrimination, be it conscious or unconscious. The UNs Human Rights Committee (2015) has raised concerns about persisting inequalities between women and men in Canada, including the high level of the pay gap and its disproportionate effect on low-income women, racialized women, and Indigenous women. Its not always about paying equal salariesreducing the gender pay gap also has a lot to do with increasing the representation of women at all levels, including more senior positions, as well as improving pay transparency to combat unconscious bias. The gender pay gap for full-time employees is 0.90, which means women make 90 cents of every dollar men make. Gender Wage Gap In Canada; Gender Wage Gap In Canada. Avid researcher, freelance writer, and personal finance enthusiast passionate about financial education and literacy. It is important to look at the data to understand the scale of the gender pay gap issue in real estate. This disproportionate share of unpaid work is supported by evidence that women have heighted perceptions of time pressure that is, both awareness of not having enough time and the experience of hectic pace, harriedness, and rushing, accompanied by apprehension and frustration (Moyser and Burlock, Statistics Canada, 2018). Also referred to as the wage gap, the gender pay gap is the average compensation difference between working-class men and women. Pay transparency can be a useful tool to help close pay gaps. More men (87%) are employed full-time than women (75.6%). A 2020 report on average and median gender wage ratios calculated based on average hourly wages by Statistics Canada ranks Canadian provinces in the following order: Studies show that while women make disproportionately less money than men, women of colour make even less than white women. Despite the slight growth, the gender wage gap in Canada is still present. Personal Finance and Travel Rewards Expert Contributor. In a poll of 1,501 employed Canadians, the Angus Reid Institute found that eight in 10 women (79 per cent) say the gender pay gap is a "serious issue" in Canada, but barely more than half 51 per cent of men agree. To quantify this impact, we used a Canadian post-secondary institution as a case study and simulated the effects of the reported difference in salary across multiple academic career trajectories. In 2021, female employees aged 25 to 54 earned $3.79 (11.1%) less per hour, on average, than their male counterparts. 2022 KOHO Financial Inc. have a labour force participation rate of 82%, woman earned 89 cents for every dollar a man made, women of colour make even less than white women, career adjustments to accommodate family life, maternity leaves contribute to lack of salary and career interruption, women take maternity leave almost twice as much as men do, encourage fathers to take that paternity leave, women comprise a mere 14% of jobs in the trades, trades environments are unwelcoming to women, According to a Pay Equity Strategist at Payscale, women to experience a 15% success rate in asking for raises, Women must feel empowered to negotiate their compensation or ask for raises, women cant handle the responsibility of a high-stress, senior position. She is also a communications advisor for the Ontario Ministry of Energy, Northern Development and Mines. Women are working more than ever, yet continue to make more career adjustments to accommodate family life than men. Women in low-paid, precarious work situations may face steeper barriers after becoming mothers as the same level of job flexibility is not available to them (Scoffield, 2019). Iceland has the lowest gender pay gap, followed by Norway, Sweden, and Finland. Advocate for paternity leave, implement a fairer distribution of household duties, and continuously check in on your partner to ensure youre making progress. As the raw or unadjusted wage gap does not account for these differences in observable characteristics, it is but a first step for understanding wage differences between sub-populations. A 2019 report found that the motherhood earnings gap persists for at least five years after women return to work following the birth of a child. Finally, in its 10-year analysis, Statistics Canada (2018) notes that nearly two-thirds of the studied gender pay gap is unexplained. However, regardless of their genuine talents and skills, women frequently underestimate their ability to meet the academic/professional standards necessary to thrive in a given position. Take maternity leave, for example. In university and colleges, transparency laws can reduce the gender wage gap by 2.2 to 2.4 percentage points, particularly in unionized settings (Baker et al., Statistics Canada, 2019). The gender wage gap in Canada is a major problem with the salary for women being 12.1% less than their male counterparts. The gender pay gap can be measured in different ways. For more information on the Labour Force Survey (LFS) methodology and population coverage, please consult the Guide to the Labour Force Survey, 2020. Its illegal to pay women less than men in Canadaand has been for decades. The pay gap is greatest among employees in the trades, where on average women earn $32,500 and men earn $40,500 25 per cent more. If you are an employer or manager, support and approve the discussion of salaries. While the gender pay gap and pay equity are related, they are not interchangeable. what women working full-time and part-time make for every dollar men make, 59.3% The LFS estimates are based on a sample and are therefore subject to sampling variability. When she isn't writing, you can find her practicing yoga or watching horror movies. Canada has federal pay transparency legislation for federally regulated workplaces, and some provinces also have their own pay transparency legislation (Baker et al., Statistics Canada, 2019). Women spend an average of 3.6 hours or 15% of their day on unpaid domestic and care work compared to the average of 2.4 hours or 10% of the day that men that spend on unpaid work (Statistics Canada, 2019). For more information, see: The gender wage gap in Canada: 1998 to 2018. Catalyst (2021) notes that both pay equity and increasing the representation of women in higher paying jobs need to be addressed to close the gap. Demand transparency laws for pay. Thinking of breaking from the daily grind of the 9-5 life? Generally, this is the most straightforward strategy to eliminate the Gender Pay Gap. Three bold steps that companies and government can take to help close the gender pay gap are: ongoing audits of compensation and gendered advancement opportunities; prioritization of workplace flexibility, especially for mothers and caregivers; and implementation of pay transparency policies (Canadian Womens Foundation, 2019). Most pay equity laws apply to the public sector (ADP). Trying to decide if you need renters insurance in Canada? The gender pay gap refers to the difference in average earnings of people based on gender. Your email address will not be published. Data from the year 2018 from Statistics Canada displayed the economic disparities between women and men. This percentage is the 'pay advantage' percentage that a male has compared to a woman. Highlights In 2018, female employees aged 25 to 54 earned $4.13 (or 13.3%) less per hour, on average, than their male counterparts. Statistics Canada is committed to serving its clients in a prompt, reliable and courteous manner. The perception that women cant handle the responsibility of a high-stress, senior position could also result in unconscious bias when hiring for executive positions. Real hourly wages were calculated from these nominal hourly wages, by dividing them by the Consumer Price Index (CPI) for the year, then multiplying the result by 100. Doing so will display the unjust reality of what women go through despite having the qualifications to work. The Institute for Gender and the Economy says: most people think the wage gap comes from women being paid unequally for the same work, but this only accounts for a small portion of the gap the bigger source of the gap comes from job segregation where women end up working in lower paid job categories or industry sectors. Women have less experience than men since they work fewer hours. Recessions impact everyone. Even when children have grown up, mothers can continue to face earning penalties associated with caregiving for aging relatives. The difference between these two numbers can be attributed to, once again, double standards. This disproportionate accommodation for family life could also explain why more women take on part-time work. In addition, eligible women should be given equal opportunities to get promotions and benefits. Remember that negotiating doesnt end at the salary. National Office: 1920 Yonge St., Suite 302, Toronto, Ontario M4S 3E2, Canadian Womens Foundation It's a widely recognized indicator of gender inequities, and it exists across industries and professional levels. Women are more likely to be viewed as bossy, intimidating, or too aggressive when seeking higher compensation. Promotions, receiving a bonus, or enjoying a pay increase, are some of the perks male employees enjoy effortlessly in most organizations. In practice, pay transparency is people being open about how much money they make for the work they do. It can include being open about benefits and other factors such as parental leave, vacation days, and paid sick days (Djabarov, 2020). This was even more obvious during the pandemic when more women were forced to quit their jobs and stay at home to take care of children in the absence of schools and daycares. Research shows that women who have children generally pay a price when it comes to salary, while men may benefit from becoming fathers. The report finds that women in Canada earn. Average hourly wages, average weekly wages and wage distributions can then be cross-tabulated by other characteristics such as age, sex, education, occupation, and union status. Respondents are asked to report their wage/salary before taxes and other deductions, and include tips and commissions. Despite the 1987 Pay Equity Act, the Gender Wage Gap is still prevalent in Canada. Though the gender pay gap has decreased since the early 1900s due to more women adopting working roles, changes in legislation, and increased education, its still alive and well. The professor of Business Law at the University of Central Oklahoma stated that maternity leaves contribute to lack of salary and career interruption for women, and thus widen the gender pay gap. Though it differs by age group, the gap starts from a young age and carries into the senior years (Moyser, Statistics Canada, 2019). Data from the year 2018 from Statistics Canada displayed the economic disparities between women and men. Below are some ways to eliminate gender gap pay in Canada: Although this may be a sensitive issue, the simplest method to fix a wage disparity between male and female employees is to pay equal wage. According to a recent report on the gender wage gap from The Canadian Centre for Policy Alternatives and Oxfam Canada, working full-time Aboriginal women made 26 per cent less than non-Aboriginal men, while women of colour made 32 per cent less than non-racialized men. Today, more than one million women are still missing from the labor force. The Gender Wage Gap in Canada: 1998 to 2018. Nearly three-quarters of people in Canadaincluding 81% of womensay they would be comfortable with their salary being made public if it could reveal unfair discrepancies between men and womens wages (McIntyre, 2018). According to Statistics Canada (2021), as of 2019, the gender pay gap for annual wages, salaries, and commissions is 0.71, which means that on an annual basis, women make 71% of what men make. Paternity leave also balances the weight of domestic duties and childcare, thereby reducing the pressure for women to accommodate family life at the expense of their careers. Sixty-four per cent of management jobs are occupied by men, compared to the 35.6% occupied by women. Labour Statistics: Research Papers. Canada Buzz is a purely informational blog. The Canadian Womens Foundation (2020) found that only 27% of women and gender-diverse people report being paid equally to their peers. As a result, women often fill these roles at legal firms, which tend to be lower paying than other positions. This could partially be a result of the fact that more of womens time is taken up with unpaid work than men. Occupational segregation with more men in higher-paying industries and fewer women in same the industries, Vertical segregation fewer women in prominent and well-paying positions. There are two types of pay gaps, they include: The adjusted pay gap considers the factors such as differences in working hours, job types, qualifications, employment experience, etc., that might influence the pay gap. percentage of white mens earnings that racialized women make, on average, 16% But job shifting may only be an option only for mothers in middle- to upper-level positions. Join the Financial Literacy Train. Introduction Gender Pay Gap also referred to as Gender wage gap, gender income difference or male-female income difference refers to the difference between the earning of men and women (Victoria, 2006). The implementation of the Pay Equity Act is an important part of the Government of Canada's commitment to close the gender wage gap and ensure that workers receive equal pay for work of equal value. Can't find what you're looking for? Men are also well represented in higher-paid sectors and jobs compared to women. In other words, these women earned $0.87 for every dollar earned by men. The gender wage gap in Canada between men and women is due to several factors including gender roles in the workplace and how employers advertise job listings. Recent Ontario analyses highlight the gender pay gap within specialties. Have confidence in what you can do, put in the work, and watch the magic happen. Fathers may also receive higher salaries than childless men, as found by a study of more than 18,000 men between 1999 and 2005. Another factor in the overall pay gap is that more women than men work part-time (Statistics Canada, 2022). 89 cents In other words, women in this age group earned $0.89 for every dollar earned by men. All rights reserved. Some sources state women are less likely to ask for raises, while others say women ask for raises the same amount as men, but emerge less successful. After a male lawyer sent emails with his female coworkers signature, he found that clients were more difficult and required more explanation than when he signed emails with his own name. On June 1, 2022, Canada requires employees to submit income data indicating the wage gap. But practices, structures, and cultural factors work together to maintain gendered pay gaps and unfairness in pay. For every dollar a man receives, a woman earns 87 cents, which is a difference of $4.13 per hour if a man makes $31.05 and a woman makes $26.92. The gender pay gap can be measured in different ways. In fact, the Harvard Business Review found women to experience a 15% success rate in asking for raises, while men had a 20% success rate. For the third step, the Toronto Star recommended that is for job listings not include present-day or preceding wages as it is not important to employees. With continued awareness and education, support for women to ask for more, balanced family responsibilities, removal of unconscious bias, greater pay transparency, and acceptance of women in trade roles, North America has a chance at closing the gender pay gap. Chrissy is a freelance writer and editor who is passionate about making financial education accessible. The non-adjusted pay gap deals with the exact figures on the average differences in pay. It is also symbolic of gender-based discrimination and injustice (Moyser, Statistics Canada, 2019). Is something not working? The information provided on this website does not constitute financial or professional advice. The most recent Statistics data of Canada shows that the gender wage gap in Ontario is 28% for full time and full year workers. The earnings gap is wider and lasts longer for women in the 25 to 29 age range than those who have children later. Ultimately, a side hustle is about you, not others. Among women aged 15 or older who worked mainly full-time in 2010, those with disabilities reported $37,070 of after-tax personal income, on average, which was $2,250 less than same-aged women without disabilities. Photo: Wikipedia Commons, The Borgen Project is an incredible nonprofit organization that is addressing poverty and hunger and working towards ending them., https://borgenproject.org/wp-content/uploads/logo.jpg, How Indias Waste Management System is Causing Health Issues. Wages grew faster for core-aged women than for core-aged men over this period. Among employees aged 25 to 54, the gender wage gap decreased 7.7 percentage points to 11.1% from 1998 to 2021. This website contains ads and affiliate links and we may receive compensation when you click any of these links. However, our team strives to bring you quality, unbiased information. Unconscious bias occurs when a person believes a stereotype about a group of people, even without realizing it. The gender pay gap is an issue that is not unique only to Canada; globally, there is a gender pay gap in different workforces. In 2021, female employees earned 11.1% less per hour than male employees, with the wage gap little changed compared with 2020. Pre-tax earnings for women remain 21% lower than for males, and variable pay, such as incentives, profit-sharing, or stock agreements, worsens the gap. Interest can help you build wealth, but it can also add to your debt load. This is consistent with studies of the gender wage gap in countries such as the United States and United Kingdom. They are concentrated in the lowest paying and most precarious of caring jobs (Canadian Womens Foundation, 2020). The industrial distribution of female and male employees plays a key role in explaining this gap, particularly the over-representation of men in the more highly paid industries of construction, manufacturing, and mining, quarrying, and oil and gas extraction. percentage of women and gender diverse people with a physical disability who report being fairly paid compared to their peers, 267.6 years Use of this publication is governed by the Statistics Canada Open Licence Agreement. While clearly not enough to eradicate the gender pay gap overnight, its a good first step to ensure transparency and equal pay. Lead author Anthony Jehn says men tend to go into higherpaying trades, such as pipefitting or plumbing, whereas women lean more toward hairdressing or cosmetology. According to an Ontario Government report, women with the same experience, socio-economic and demographic background earn approximately $7,200 less than their male counterparts per year (Gender Wage Gap Strategy Sterring Committee, 2015). What is the Federal Government doing to reduce the gender pay gap in Canada? The gender pay gap persists even though women now outnumber men in pursuing university degrees (Statistics Canada, 2021). Some products and services that appear on this site are from companies from which Canadabuzz receives compensation. Statistics Canada Catalogue no. Motherhood might have an impact on employment choices as well. Despite wage disparities between men and women and gender roles in the workforce, the steps that the Ontario Equal Pay Coalition recommended should help reduce the gender wage gap and promote awareness of the issue. 319. By using this website, you accept our Terms and Conditions. Yes, I want to invest in advancing gender equality! Given Canadas rapidly aging population, this is another cause for concern (The Vanier Institute of the Family, 2017). Other ways you can calculate the gender wage gap include comparing annual earnings for both full-time and part-time workers and evaluating the hourly wages for full-time and part-time workers. Todays women are more educated, more confident, more motivated, so they could have same career's position like men in society, even though equal payment still has not reached in many countries even in a developed county such as Canada. The study focused on white men due to pay gaps between racialized and white men (Fuller and Cooke, 2018). Women must feel empowered to negotiate their compensation or ask for raises without fear of coming off as too aggressive. Experts recommend women research average salaries for their current position, and to save evidence of clients or coworkers praising their work to use as the basis for requesting a raise. Estimates vary, but the World Economic Forum (2021) has calculated that it will take 267.6 years to close the economic gender gap worldwide, if present trends continue. Canada Buzz is an advertising-supported blog. Trades employers and unions must prepare their workplaces to welcome women. . While more women are joining the trades now compared to a decade ago, there is still a long way to go. It is a widely recognized indicator of gender inequities, and it exists across industries and professional levels. The gender pay gap is everywhere, but it targets women at every race cohort differently. Many societal and economic factors contribute to the gender pay gap, like industrial distribution and unconscious bias. Similar results are found when considering all employees aged 15 and older. It is recommendable to be fair and honest when evaluating how your company pays staff and other benefit packages for employees, not forgetting its method to calculate wage increment. What is a Small Business Deduction in Canada? Some states in the U.S. have placed a ban on including wage history in job postings and have seen a low rate of pay discrepancies between men and women. Also referred to as the wage gap, the gender pay gap is the average compensation difference between working-class men and women. Some of these campaigns include Equal Pay Dayor the equal pay for equal work movement, which promotes public awareness of the gender pay gap. For this portion, possible explanations include gender differences in work experience, as well as unobservable factors, such as any gender-related biases.. The difference in gross hourly earnings between sub-population groups can be a partial indicator of the degree of equal opportunity or discrimination in the labour market. Remote work is an essential step toward permanently closing the Gender Pay Gap as women will garner more experience while still maintaining a family. How is the gender pay gap different for groups? Raw Versus Controlled Gender Wage Gap. In 1998, the gender pay gap stood at a bleak 18.8%. We may alter brand placements on our website to amplify our partners and their offers. These factors also make it more likely for women to have interruptions or absences from work, which are linked to fewer opportunities for promotions and salary increases. The gender wage gap is the difference in earnings between women and men in the workplace. Follow these links for more information on our Privacy Policy, Accessibility Policy and Multi-Year Accessibility Plan. Picot, G. 2008. When comparing the median salary between men and women, a 2021 report from Payscale reports that women earn 82 cents for every dollar men make. There are different ways of measuring the gap, but no matter how you measure it, the gap still exists. But if we were to break down the gender pay gap by industry, you would be surprised to know male-dominated are not actually the worst offenders. Pay equity is often defined as equal pay for work of equal value, and Canada has had laws about it since the 1970s (Canadian Human Rights Commission). There has been a narrowing of the gender pay gap over time. The analysis focuses on differences between estimates that are statistically significant at the 95% confidence level. Gender Wage Gap. The pay gap indicator is based on the self-reported usual hourly wages of paid employees aged 25 to 54 at their main job. Your email address will not be published. For every dollar a man receives, a woman earns 87 cents, which is a difference of $4.13 per hour if a man makes $31.05 and a woman makes $26.92. Among 43 countries analyzed by theOrganization for Economic Cooperation and Development(OECD), Canada ranked 8th as one of the countries with the largest pay gaps between genders. This article explores change and continuity in gender norms and roles in Canada since 1960. That's a 25 per cent gender pay gap. It has been reduced gradually over time. The controlled gender pay gap tells us what women earn compared to. The gender pay gap is especially significant in the marginalized groups and minority communities as studies show Indigenous women face a 57% pay gap, immigrant women 39%, women with disabilities make 46% less, and racialized women 32%. Additional Statistics Canada data are available on the following subject: Canada owes the success of its statistical system to a long-standing partnership between Statistics Canada, the citizens of Canada, its businesses, governments and other institutions. Unless otherwise stated, hourly wages are adjusted for the Consumer Price Index (CPI) and expressed in 2021 constant dollars. The gap can be measured using different metrics, including average hourly wages, median hourly wages, average annual earnings, and median annual earnings. Accurate and timely statistical information could not be produced without their continued co-operation and goodwill. Women have always been the ones who quit employment temporarily to care for their children. Women work part-time for several reasons, including lack of affordable childcare and family leave policies, along with social pressure to carry the bulk of domestic responsibilities (Schirle and Sogaolu, 2020). The risk of falling into poverty means that women are sometimes forced to stay in abusive relationships, despite the danger (Public Health Agency of Canada, 2012). Girls 12 to 18 experience a summer job gender pay gap of almost $3.00 per hour (, It has implications on a global scale. Three high-paying and male-dominated sectors in particular have contributed to the pay gap between 1998 to 2018: construction, manufacturing, and mining, quarrying, and oil and gas extraction. Mothers with at least one child under age 18 earned 85 cents for every $1 earned by fathers, while women without children earned 90 cents for every dollar earned by men without children, based on 2015 data (Moyser, Statistics Canada, 2017). It ensures that working-class individuals, regardless of gender, will receive equal wages. Wages grew faster for core-aged women than for core-aged men over this period. For this study, CPI=100 in 2021, meaning that results are presented in 2021 constant dollars. The Government of Canada has recognized this to be a critical issue and introduced the Pay Equity Act on August 31, 2021. Hence, it is essential to create an awareness that will sharpen and broaden womens occupational interests while also reinforcing their confidence and adequacy via tangible experiences. Get the latest financial information delivered right to your inbox. This would help create a more even playing field for women, as men could relieve the career disruption women face when taking care of children. The following analysis focuses on the gender gap in the self-reported gross hourly wages of employees in the core working ages of 25 to 54, as captured by the Labour Force Survey (LFS). According to Statistics Canada, industrial distribution explains 39.7% of the gender pay gap in 2018. Multiple resources cite raises and promotions as a contributor to the gender pay gap. How to survive a recession: A guide for making the most of your money during a difficult time. Product News and Recommendations Senior Editor. It also addresses current challenges and issues related to gender in Canada. This wage gap diminishes Canadian womxn's earning power, decreases their financial independence and keeps more womxn . The second suggestion is for job listings to indicate the pay range for the role which should prevent women from asking for too little when negotiating for a job. Last year, women in the core working age of 25-54 working full-time over the full year earned 82 per cent of what their male . The way that customers view women lawyers may influence their success in the workplace as well. Flexible employment allows women to undertake caring or childcare tasks while still keeping a profession and an income. It impacts all life stages. One of the ways we get rewarded is via ads and affiliates. The majority of the gender pay gap worldwide opens up around the time of the birth of the first child. Women with disabilities have lower incomes compared to women without disabilities and men with or without disabilities. And, in one of the most dramatic social changes over the last century, womens participation in the labour market has increased significantly. Demographic changes, the women's liberation movement . To this end, the Agency has developed standards of service which its employees observe in serving its clients. A new report has revealed the extent of the transgender pay gap in America. Only 13% of men are employed part time, and 24.4% of women are employed part time (Statistics Canada, 2022). On average, women must work 15 and a half months to earn what a man does in 12 months. Generally, women have prejudices about which career paths are acceptable. When it comes to the gender gap in overall economic participation and opportunity, Canada ranks only 40 in the, Online Hate and Cyberviolence Against Women and Girls, Resetting Normal: Building Gender Equality in the Pandemic Recovery, Building the Field of Teen Healthy Relationships. This is important for all women, who earn less than men in all but five occupations, but especially important for women of color, for whom the gender wage gap is magnified by a racial and ethnic earnings gap (Institute for Womens Policy Research, 2020). Credit card debt is at an all time high amid inflation. From creating apprenticeship programs for women to offering flexible childcare options to even providing women with uniforms and safety gear that actually fit all are great starting points to promote gender diversity in the trades sector. The distribution of male and female employees across industries plays a key role in explaining this gap, particularly the higher proportion of men working in highly paid industries such as construction. While the gender pay gap affects all women, it impacts women of colour hardest. That number goes down to 16% for those with a physical disability, 23% for those with another type of disability, 25% for those who are racialized, 25% of those who are 2SLGBTQI+, and 25% for those aged 55 and older. Pay inequity is so important because earnings are a key determinant of economic well-being in Canada. It will put into place long-term, sustainable changes that will ensure that women's work is valued and compensated fairly, now and into the future. Instead, it incorporates discrepancies in average wage between men and women to act as a comparator. The first step is to inspect how wages differ between men and women who work in similar jobs. This coalition is a collection of trade unions and other organizations that promote pay equity for employees including women. With inflation making goods and services more expenses, credit card usage is at an all-time high and many Canadians are racking up debt. Several states also have laws preventing public and private sector companies from compensating men and women differently for essentially equivalent work. Figure 1: Statistics Canada. Whats the scope of the gender pay gap in Canada? Learn more about how interest is calculated on savings and loans. 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