Wales falls in influential index on gender equality in the workplace

Professional advisory PwC has published its 2026 Women in Work Index

Wales has fallen two places in an influential index that evaluates how UK nations and regions perform on gender equality in the workplace.

The 2026 Women in Work Index, from professional advisory firm PwC, shows that while the gender pay gap in Wales at 9% is significantly below the UK average of 12.4%, the slip in the rankings – from fifth to seventh on last year’s index – is driven by a low rate of female full-time employment (58% compared with the UK average of 59.8%) and a drop in the female labour participation rate from 73.4% to 71.7%.

Female unemployment in Wales is amongst the lowest in the UK, at 2.8%, while the gap between male and female labour force participation sits at 7.2%, marginally higher than the UK average.

The index is headed by the south west of England, followed by Scotland and Northern Ireland. Of the 12 nations and regions assessed, London is ranked the lowest.

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Launched in 2011 in the index’s ranking is based on a weighted average of five indicators that capture women’s labour market outcomes: female participation rates, participation rate gap, female unemployment rate, female full-time employment rate, and gender pay gap.

Stuart Couch, market senior partner for PwC in Wales, said: “While slipping to seventh place in this year’s Women in Work Index reminds us that there’s plenty to do on the journey to gender parity in the workplace in Wales, it’s great to see the gender pay gap fall into single figures for the first time.

“The data points to a challenge around the number of women in full-time work. While some choose part-time employment, women are more likely to be pressured into working part-time as a result of high childcare costs, caring responsibilities and the incompatibility of long hours and commitments outside of work.

“The challenge for employers and policymakers is how to break down the conditions that apply that pressure. Empowering women to work full-time at the same rate as men will drive critical productivity growth for the Welsh economy.”

On a global ranking the UK has risen one place to 17th, regaining its position as the top‑ranking G7 country for women’s economic empowerment, though improvement stems largely from other countries slipping behind.

The index shows that progress across the OECD has slowed to its weakest level since the pandemic, driven by a historic fall in full‑time employment for women and rising unemployment rates. The UK’s performance is held back by rising female unemployment and falling full‑time work.

Female unemployment rose from 3.5% to 4.2%, making it the biggest driver of the UK’s static performance this year. This increase reflects wider labour market pressures and marks a reversal of previous gains.

The UK’s female participation rate edged up from 74.8% to 75.0%, remaining above the OECD average of 73.1%. However, the modest increase suggests limited improvement in women’s overall engagement with the workforce. The gap between male and female participation narrowed from 7.8% to 6.4%, largely driven by rising male economic inactivity rather than meaningful gains in women’s participation.

The UK’s gender pay gap narrowed slightly, falling from 13.3% to 13.1%. Progress continues to lag behind the OECD average of 12.4%, indicating slower movement toward pay equality compared to peer economies.

The full‑time employment rate for women fell by 1.2 percentage points to 67.7%. While this reflects a broader OECD shift toward part‑time work, it also highlights the combined impact of limited access to secure full‑time roles and the reduced take‑up of full‑time work. High childcare costs, limited affordable wraparound care, and long working hours make full‑time employment less feasible for many women.

NEET levels among young women

PwC’s latest analysis shows the UK could unlock major economic gains by reducing the number of young women who are not in education, employment or training (NEET). Germany and the Netherlands have some of the lowest NEET rates in Europe. Bringing female NEET rates in line with Germany could add £5bn to UK GDP, while matching the Netherlands could deliver up to £11bn. Even returning to the UK’s 2021 low would generate a further £3bn.

The report examines why nearly 946,000 16‑to 24‑year‑olds – almost one in eight – are now NEET, up from 11.9% to 13.6% since the pandemic.

In the UK, low GCSE attainment significantly increases NEET risk for young women, and the impact is more pronounced than it is for young men (24.5% vs 19.4%). This reflects deep‑rooted gendered patterns in the labour market: boys with low qualifications are more likely to move into better‑paid, male‑dominated sectors, such as construction that have accessible routes into work, while girls often face far fewer comparable opportunities.

Carol Stubbings, UK and EMEA managing partner at PwC, said: “While the UK has regained its position as the highest‑ranking G7 economy for women in work, the story beneath the headline is more complex. Rising female unemployment, especially among young women, points to underlying weaknesses in our labour market at a time when AI is reshaping the economy and the skills needed.

“The countries that succeed will be those that invest in strong foundations in education and continued skills development. Employers have a crucial role in creating clear pathways into work and helping their people continue to learn and adapt. Reducing the number of young women who are NEET is not only a social imperative – it is an economic one, with billions in potential GDP at stake.”