GENDER disparities in pay are most pronounced during “peak earning years”, according to shocking new statistics which show women aged 55 to 59 in Jersey’s finance sector face a pay gap of over 65%.
Published yesterday by Statistics Jersey, the gender pay gap report reveals a gap of 7.8% in the Island during the 12 months to June 2024.
The report found that “while young men and women start on relatively equal pay, long-term career and life factors lead to a growing gender pay disparity over time”.
The gap for those aged between 16 and 29 is “narrow”, but begins to widen to almost 5% by ages 35 to 39. This indicates a “shift where men start to earn more than women”, according to the report.
During “peak earning years” – which are between the ages of 40 and 59 – the gap widens, with women aged 55 to 59 facing the most significant gender pay gap of 16.1%.
After the age of 60, the gap declines but does not disappear, suggesting a “disparity that continues even as people approach retirement”.
Although the finance and legal industry is Jersey’s highest-paying sector, it has the second-largest gender pay gap.
Men earn more than women in all age groups over 30 in this sector, with the gender pay gap peaking at 65.7% for those aged 55 to 59 – the biggest gap for any age and sector combination.
Recruitment director Denise Heavey explained that women’s long-term earnings are impacted by the “motherhood penalty”.
“In recruitment, we see first hand how career breaks for childcare impact women’s long-term earnings,” she said. “The ‘motherhood penalty’ isn’t just about time off it’s about re-entering at a lower level, reduced bargaining power, and salary progression falling behind male peers.
“Part-time work compounds this gap, affecting pensions and long-term financial security.”
Ms Heavey said that she often sees women over the age of 50 rejoining the workforce at a more junior level after taking time off for health reasons, or looking after children or elderly parents.
She added: “Many women stay in the same company for stability, but incremental pay rises rarely match the jump in salary that job moves bring.”
Ms Heavey called for flexible working, “real wage transparency” and “proactive promotion policies” to address this issue.
Wellness coach Trudi Roscouet highlighted the impact of the menopause on working women.
She pointed to the Fawcett Society study, published in 2022, which estimated that one-in-ten women aged between 40 and 55 had left a job because of menopause symptoms.
The study of over 4,000 UK women found that 14% of those working through menopause reported reducing their hours, and a further 14% had gone part-time.
Ms Roscouet said that symptoms of anxiety, brain fog and insomnia can have a huge impact on work.
“We know women are the growing work force and need to be retained which is why the need to ensure companies open their door to menopause education and break taboos,” she said. “Management training is critical to ensure staff retention.”
The lowest gender pay gap in Jersey was in the private education, health and other services sector (0.1%).
The pay gap has shown signs of narrowing in the financial and legal sector since January 2022, while non-finance private sectors have seen “relatively little change in” over the same period, according to Statistics Jersey.
The gender pay gap report marks the introduction of a new regular publication, scheduled for release annually each March. The full report can be read online at gov.je.
