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). The gender pay gap can be measured in different ways. The gender pay gap refers to the difference in average earnings of people based on gender. National Office: 1920 Yonge St., Suite 302, Toronto, Ontario M4S 3E2, Canadian Womens Foundation The non-adjusted pay gap deals with the exact figures on the average differences in pay. The ability to openly discuss compensation can bring awareness to any form of discrimination, be it conscious or unconscious. The Toronto Star, a news site, suggested four steps to eliminate the wage gap. Women are typically observed to be underpaid in comparison to their male counterparts. Product News and Recommendations Senior Editor. Is there information outdated? 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). The gender pay gap can be measured in different ways. According to Statistics Canada, industrial distribution explains 39.7% of the gender pay gap in 2018. In its ranking of countries, Canada has the eighth worst gender pay gap. However, our team strives to bring you quality, unbiased information. 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 . It's a widely recognized indicator of gender inequities, and it exists across industries and professional levels. CPI values are from Statistics Canada Table 18-10-0005-01: Consumer Price Index, annual average, not seasonally adjusted. This article explores change and continuity in gender norms and roles in Canada since 1960. Also, according to this data, racialized women were paid less than white men, based on median wages, salaries, and commissions. . 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. Here is some information about the gender wage gap in Canada and some suggestions on how to eliminate it. 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. In 2021, female employees aged 25 to 54 earned $3.79 (11.1%) less per hour, on average, than their male counterparts. Is something not working? Ultimately, a side hustle is about you, not others. In 2021, female employees earned 11.1% less per hour than male employees, with the wage gap little changed compared with 2020. 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. percentage of women and gender diverse people with a physical disability who report being fairly paid compared to their peers, 267.6 years 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. Hourly wages are used rather than weekly earnings or annual income, in order to avoid comparing different quantities of work. Opinions expressed on this blog are NOT endorsed by the reviewed brands. 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. The pandemic made the gender pay gap worse, especially for women of color. If youre thinking of retiring early, theres plenty to consider. This website contains ads and affiliate links and we may receive compensation when you click any of these links. Specifically, the average hourly wages of female employees increased 28.6%, while mens increased 17.4%. If its illegal to pay people differently based on gender, why does the gender pay gap exist? Despite the 1987 Pay Equity Act, the Gender Wage Gap is still prevalent in Canada. The gender pay gap is everywhere, but it targets women at every race cohort differently. Data from the year 2018 from Statistics Canada displayed the economic disparities between women and men. France had the lowest gap at 11.6%. Therefore, organizations need to review details that have to do with promotions to suit both genders. 89 cents Labour Statistics: Research Papers. When the Pay Equity Act was passed in 1987, the gender wage gap was 36%. Generally, the wage gap can be measured differently, although the most prominent method is evaluating the full-time, full-year wages. According to Statistics Canada womxn workers in Canada earned an average of 84 cents for every dollar earned by men in 2019. 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. percentage of white mens earnings that racialized women make, on average, 16% What is a Small Business Deduction in Canada? Its illegal to pay women less than men in Canadaand has been for decades. Take maternity leave, for example. 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. In other words, women in this age group earned $0.89 for every dollar earned by men. His work has been featured in publications such as Forbes Advisor, Bankrate, Credit Karma, Finance Buzz, The Ascent and Student Loan Planner. 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. 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. Wages grew faster for core-aged women than for core-aged men over this period. 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. We may alter brand placements on our website to amplify our partners and their offers. Crafting trans-inclusive policies and programs (e.g., review company dress code, eliminate gender-specific language). Jacara Watkins And this, in combination with other gendered stressors, takes a personal toll. Respondents are asked to report their wage/salary before taxes and other deductions, and include tips and commissions. Promotions, receiving a bonus, or enjoying a pay increase, are some of the perks male employees enjoy effortlessly in most organizations. 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. The pay gap between core-aged Black employees and non-visible minority employees was 16.1%. Heres how to manage it. And, in one of the most dramatic social changes over the last century, womens participation in the labour market has increased significantly. 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). Toll Free: 1-866-293-4483 Gender inequalities in credentials, discrimination, overall salary structure, and differences in payment across industrial sectors all impact the gender pay gap. It is a widely recognized indicator of gender inequities, and it exists across industries and professional levels. Spread its campaign materials regarding the gender wage gap on social media. 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. 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). 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. 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. The Ontario Equal Pay Coalition has been working to resolve the gender wage gap. Required fields are marked *. Save my name, email, and website in this browser for the next time I comment. For more information, see: The gender wage gap in Canada: 1998 to 2018. Canada Buzz is an advertising-supported blog. Women have less experience than men since they work fewer hours. 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 study focused on white men due to pay gaps between racialized and white men (Fuller and Cooke, 2018). 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. Gender pay gaps in the Canadian health sector are narrowing, but employment loss during the COVID-19 pandemic affected women more than men, according to a new report.. A global analysis by the . 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. In 1998, the gender pay gap stood at a bleak 18.8%. 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). The gender wage gap is the difference between wages earned by men and wages earned by women. How is the gender pay gap different for groups? 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. Join the Financial Literacy Train. Among employees aged 25 to 54, the gender wage gap decreased 7.7 percentage points to 11.1% from 1998 to 2021. 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). 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. 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). This 18% . This disproportionate accommodation for family life could also explain why more women take on part-time work. Here's how to manage it. All rights reserved. Gender wage segregation is where people view certain jobs as acceptable for women such as roles as assistants, receptionists and clerks. The Government of Canada has recognized this to be a critical issue and introduced the Pay Equity Act on August 31, 2021. 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 example, women executives make about 56% less on average than men executives. Whats the scope of the gender pay gap in Canada? But Fox says solutions should focus on organisations taking responsibility rather than placing the onus on women to be more assertive and haggle for a raise. 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. These include norms, behaviours and roles. The Ontario Equal Pay Coalition focuses on the average annual earnings because it addresses the full picture of womens economic inequality. Whats in it for us? Avid researcher, freelance writer, and personal finance enthusiast passionate about financial education and literacy. The gender wage gap leaves women at a disadvantage, making it harder to pay bills or have savings for unexpected emergencies. The gender wage gap in Canada is a major problem with the salary for women being 12.1% less than their male counterparts. Another factor in the overall pay gap is that more women than men work part-time (Statistics Canada, 2022). Many of the women working in these sectors are racialized, immigrant, migrant, and/or undocumented. 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). Every province/territory in Canada has aquasi-constitutional human rights codethat outlaws gender discrimination. 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. Many societal and economic factors contribute to the gender pay gap, like industrial distribution and unconscious bias. While still grim, these numbers have been showing improvement. Gender refers to the characteristics associated with women/girls and men/boys. 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. Pay transparency can be a useful tool to help close pay gaps. The topic attracts significant investor interest, and regulation is also increasing, meaning this is both a brand and financial issue (Baker McKenzie). The majority of the gender pay gap worldwide opens up around the time of the birth of the first child. How to survive a recession: A guide for making the most of your money during a difficult time. For this portion, possible explanations include gender differences in work experience, as well as unobservable factors, such as any gender-related biases.. 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. There have also been several studies that show that providing more flexible working hours may benefit organizations by increasing employee engagement and productivity. Credit card debt is at an all time high amid inflation. Accurate and timely statistical information could not be produced without their continued co-operation and goodwill. For more information on the Labour Force Survey (LFS) methodology and population coverage, please consult the Guide to the Labour Force Survey, 2020. 374 Words 2 Pages. Given Canadas rapidly aging population, this is another cause for concern (The Vanier Institute of the Family, 2017). Trying to decide if you need renters insurance in Canada? 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. Generally, this is the most straightforward strategy to eliminate the Gender Pay Gap. Why? 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. According to the OECD (2022), for full-time employees, there is a 16.1% difference between annual median earnings of women and men relative to the annual median earnings of men. Gender Wage Gap In Canada; Gender Wage Gap In Canada. 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. So far, the gender gap pay is the sad reality of many working-class women. The gender wage gap is the difference in earnings between women and men in the workplace. 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. While the gender pay gap affects all women, it impacts women of colour hardest. In 2020, Canadian working-class women generated 43% less in other compensation than their male counterparts. The first step is to inspect how wages differ between men and women who work in similar jobs. As a result, women often fill these roles at legal firms, which tend to be lower paying than other positions. Several states also have laws preventing public and private sector companies from compensating men and women differently for essentially equivalent work. 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. As I mentioned, it impacts all life stages . The pay gap indicator is based on the self-reported usual hourly wages of paid employees aged 25 to 54 at their main job. In general, the gender pay gap refers to the difference in average earnings of people based on gender. The Act will come into force on August 31, 2021, and will apply to federally regulated public and private sector employers with an average of 10 or more employees. To bridge the gender pay gap, we as a society must address racial and gender discrimination, eliminate double standards at home and at work, and be more transparent with pay. Generally, the wage gap can be measured differently, although the most prominent method is evaluating the full-time, full-year wages. Here's how to convince the deniers. Though there are more women in the industry, in 2020, the difference between . Though it differs by age group, the gap starts from a young age and carries into the senior years (Moyser, Statistics Canada, 2019). 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 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. This brings us to how we can eliminate gender gap payment. 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. 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. Pay gaps among population groups designated as visible minorities, The gender wage gap in Canada: 1998 to 2018. 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). When she isn't writing, you can find her practicing yoga or watching horror movies. 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. . While bridging the racial gender pay gap warrants a new article altogether, you can start by bringing awareness to the issue within and beyond your organization, encouraging pay transparency, supporting women of colour when negotiating salaries, and providing sponsorship and mentorship opportunities dedicated to women of colour. 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). 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). 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. Your email address will not be published. If you are an employer or manager, support and approve the discussion of salaries. 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. 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. Nonetheless, most gender pay gaps are not calculated based on their types. Sixty-four per cent of management jobs are occupied by men, compared to the 35.6% occupied by women. Beginning in January 1997, information is collected on the usual wages or salaries of employees at their main job. 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. This requirement also contributed to female professors getting more raises. Here are its recommendations. Unconscious bias occurs when a person believes a stereotype about a group of people, even without realizing it. This percentage is the 'pay advantage' percentage that a male has compared to a woman. 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). Germany (22.3%) and the United States (21.4%) were the top two unadjusted gaps. Recent Ontario analyses highlight the gender pay gap within specialties. The gender pay gap persists even though women now outnumber men in pursuing university degrees (Statistics Canada, 2021). 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. Yes, I want to take action and make a difference! Instead, it incorporates discrepancies in average wage between men and women to act as a comparator. 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%. 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. The Gender Wage Gap in Canada: 1998 to 2018. Motherhood might have an impact on employment choices as well. When it comes to provinces within Canada, some are doing a better job than others. Unless otherwise stated, hourly wages are adjusted for the Consumer Price Index (CPI) and expressed in 2021 constant dollars. 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. To this end, the Agency has developed standards of service which its employees observe in serving its clients. In many workplace environments, employees refrain from speaking about their salaries for fear of reprisal from their employers. 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. 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 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). In spite of the high wage premiums, women comprise a mere 14% of jobs in the trades. 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. Have confidence in what you can do, put in the work, and watch the magic happen. Women who graduate university with a bachelors degree earn an average of $69,063 annually, while men who graduate with a bachelors degree earn $97,761 (Statistics Canada, 2016). 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. Kareena Maya is a freelance writer focused on the personal finance and travel spaces. This statistic is an indicator of womens economic inequity in the workplace. In 2021, female employees earned 11.1% less per hour than male employees, with the wage gap little changed compared with 2020. To close the gender pay gap in society and create awareness, some organizations aim to create awareness campaigns. Immigrant Economic and Social Outcomes in Canada: Research and Data Development at Statistics Canada. 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. In addition, a deliberate effort should be made to ensure that both men and women are in a position to make more informed employment decisions. 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. 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. Yes, I want to invest in advancing gender equality! Whats the motherhood penalty and fatherhood bonus? 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. 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. Figure 1: Statistics Canada. Weekly and hourly wages/salaries are calculated on the basis of usual paid work hours per week. The information provided on this website does not constitute financial or professional advice. 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. 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). The gender pay gap is worse for those who face multiple barriers, including racialized women, Indigenous women, and women with disabilities. Flexible employment allows women to undertake caring or childcare tasks while still keeping a profession and an income. Recessions impact everyone. Skeptics of the gender pay gap exist, even though there's extensive research proving it's real. More men (87%) are employed full-time than women (75.6%). Trades employers and unions must prepare their workplaces to welcome women. While the gender pay gap and pay equity are related, they are not interchangeable. 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. If your employer is unable to reach your salary expectationsand even if theyre able toinquire about a bonus or more vacation time. 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. Wages grew faster for core-aged women than for core-aged men over this period. Your email address will not be published. The wage gap is calculated as: Statistics Canada, Labour Force Survey, 1998 to 2021 and Labour Force Survey Supplement, 2021. Experience special sneak peeks of your . An analysis of data from the Ontario Medical Association showed that, on average, male family physicians earn 30% more and male specialists earn 40% more than their female counterparts.32 Moreover, men earn more than women within every specialty ().A more sophisticated cross-sectional analysis of billing data showed that . The controlled gender pay gap tells us what women earn compared to. Canada has the sixth-largest unadjusted gaps (16.1%) in base pay between men and women of the eight countries surveyed. Statistics Canada Catalogue no. He frequently writes about credit cards, banking, student loans, insurance, travel rewards and more. Women are more vulnerable to low income than men in Canada, partially due to the gender pay gap (Fox and Moyser, Statistics Canada, 2018). For examples, in 2015, 82% of women ages 25 to 54 participated in the workforce, a big increase from 21.6% in 1950 and 65.2% in 1983 (Levanon et al., 2009). Also referred to as the wage gap, the gender pay gap is the average compensation difference between working-class men and women.
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