Young women face inequality from the very start of their working lives. On average, a young woman will earn £4,000 a year less than a young man of the same age – we call this the income gap.
The income gap reflects differences in total annual earnings, which are shaped by both:
- Hourly pay differences (often referred to as the gender pay gap) and
- Differences in hours worked and employment patterns.
While the official gender pay gap focuses on differences in hourly pay rates, this on its own understates the full inequality young women experience. When we look at annual earnings, the picture shows far more pronounced financial inequality – and for some groups of young women, such as those from racially minoritised communities, the income gap is even larger.
This gap continues to grow over the course of a woman’s working life — so tackling it early is crucial to giving young women a fairer financial future.
Why does it happen?
They still face discrimination in the workplace – holding them back from progressing, reaching their potential, and earning what they should.
The income gap exists for several inter-related reasons:
- Young women are more likely to work in lower paid jobs and sectors – and getting stuck there.
- They are more likely to work fewer hours, including in part-time work where rates of pay are typically lower.
- They’re taking on more unpaid work, such as childcare, which limits the hours they can work.
- They still face discrimination in the workplace – holding them back from progressing, reaching their potential, and earning what they should.
At a time in life when young women should be growing, learning, and taking chances, they’re instead too often trapped in a struggle just to get by.
