Despite progress in gender equality, women across Europe continue to earn 12% less than their male counterparts, according to the latest figures from Eurostat. This gender pay gap is a significant issue, even as Europe leads globally in gender parity, according to the World Economic Forum’s Global Gender Gap Report 2023.
In 2023, women in the European Union earned €88 for every €100 earned by men, showing a slight improvement from 2013, when the gap was 16%. While the reduction in the gender pay gap is encouraging, the disparity continues to impact women across multiple sectors and countries.
The Gender Pay Gap Across Europe
The unadjusted gender pay gap in Europe varies significantly by country. In 2023, the gap ranged from 0.7% in Luxembourg, where women earned slightly more than men (€101 for every €100), to 19% in Latvia, where women earned only €81 for every €100 earned by men. Austria and Czechia followed closely behind, with women earning just €82 for every €100 men earned.
On the other hand, Southern European countries like Italy, Spain, and Portugal reported smaller gender pay gaps. Italy had one of the lowest gaps, with women earning €98 for every €100 earned by men. In France, women earned €88 for every €100 earned by men, while in Germany, the figure was €82.
Key Reasons Behind the Gender Pay Gap
Several factors contribute to the persistent gender pay gap in the EU:
- Sectoral Segregation: Women are often employed in lower-paying industries like healthcare, education, and social services, which accounts for about 24% of the gender pay gap.
- Unequal Distribution of Paid and Unpaid Work: Women tend to spend more time on unpaid tasks such as caregiving and household chores, which affects their overall earnings.
- The Glass Ceiling: Women are underrepresented in top leadership roles, with fewer women holding CEO positions compared to men.
- Pay Discrimination: In some sectors, women still earn less than men for the same work or work of equal value.
Employment Rate Disparities Between Men and Women
Another concerning statistic is the employment rate gap between men and women in Europe. In 2024, men had a higher employment rate than women in all 32 European countries studied, including both EU and non-EU nations. The average employment rate for men in the EU stood at 80.9%, while for women, it was 70.9%, reflecting a 10 percentage point gap.
Countries like Turkey stand out with a large employment gap, where women’s employment rate lags behind men’s by 38 percentage points. Italy, Greece, and Romania also reported gaps exceeding 18 percentage points.
EU’s Efforts to Close the Gender Pay Gap
The European Commission has recognized the need for greater pay transparency to tackle the gender pay gap. The Pay Transparency Directive aims to uncover unjustified pay disparities by requiring employers to provide more transparency in salary structures. This is seen as a crucial step towards achieving gender equality in the workplace.
Although progress has been made, much remains to be done to ensure equal pay for equal work across Europe. The Commission has emphasized that addressing sectoral segregation, promoting leadership opportunities for women, and ensuring equal pay for equal work are key to reducing the gap.
Conclusion
While Europe has made strides in narrowing the gender pay gap, women still earn 12% less than men, a disparity that continues to be evident in several countries. Efforts like the Pay Transparency Directive aim to address these inequalities, but significant challenges remain. For true gender equality in the workplace, it’s essential to focus on both pay equity and broader socio-economic factors that contribute to the persistent gender pay gap.