Understanding the gender pay gap

We have written before about the gender pay gap in the UK. According to the Office for National Statistics the average hourly (gross, excluding overtime) gender pay gap in the UK for all employees fell from 17.8 per cent in 2018 to 17.3 per cent in 2019.  However, nee research has revealed cross-national gaps vary from as much as -5 per cent in Wigan to 32 per cent in Slough suggesting that only focusing on a national perspective might be overly simplistic.

The Centre for Cities has found that 7 of the 10 cities with the highest gender pay gap are located either in the South East or East of England. They say that “as cities in these regions tend to perform economically better than cities in the North of England, economic performance seems to influence the gender pay gap in cities. In general, cities with higher average weekly earnings (e.g. Cambridge, London, Reading, Crawley, Slough) tend to have a higher gender pay gap.”

Another factor the Centre for Cities things is driving higher gender pay gaps in the south of England is the bigger difference between men and women holding a managerial position. While 5.2 of men and 3.2 per cent of women in the north east hold such a position, 8.1 per cent of managers in the south east are men while only 4.4 per cent are women (data is not available below regional level).”

Six out of the ten cities with the smallest gender pay gap are located in the North of England: Wigan, Burnley, Warrington, Sunderland, Blackburn and Middlesbrough. These cities have weaker economies and lower rates of employment

The Centre for Cities has looked at the industrial composition of the labour market in Warrington and Wigan, finding that both cities have a higher share of jobs in education, human and health activities and social work than cities with higher gender pay gaps such as Slough and Crawley.

The composition of sectors in and around cities is seen as important and since women are more likely to be employed in the public sector, for instance, as teachers, social workers and nurses, the gender pay gap tends to be lower in cities with a higher proportion of public sector jobs such as in Middlesbrough, Blackburn, Swansea and Glasgow.

LMI for All team meets Studiekeuze123

Photo of Studiekeuze123 and LMI for All team

As part of a knowledge exchange and sharing good practice, Sally-Anne Barnes, as part of the LMI for All team, met with the Stichting Studiekeuze123 team from the Netherlands. Studiekeuze123 had just won three #LovieAwards for their website Studiekeuze123.nl, which is the official Dutch platform to support students in their study orientation and choices. Sally-Anne and the Studiekeuze123 team had a great morning talking about careers LMI, course and occupational mappings and widgets! The LMI for All team look forward to future opportunities to work together.

Working Better: Using data for inclusive system for jobs

As part of NESTA’s one-day conference, Working Bettter, Sally-Anne Barnes presented on LMI for All alongside international speakers talking about research and innovations in using data to create open labour market systems. The event comprised over 100 experts, policymakers and practitioners to explore new approaches to anticipate changes in the demand for skills and help people navigate into jobs that are right for them.

More information on the event and presentations from the day are available on the NESTA website. The following is the presentation given by Sally-Anne.

Jordan British Council and AQACHEI visit LMI for All team

Photo of AQACHEI team

The LMI for All team welcomed members of the Jordan British Council, the Accreditation and Quality Assurance Commission for Higher Education Institutes and the higher education sector (AQACHEI) to IER. The delegation was comprised of key members responsible for the implementation of the Jordan National Qualification Framework. They came to find out more about LMI for All and how it is supporting careers education and guidance within the education sector. The event was organised by Lisa Collett from Cotswold Research who has been managing the Action Learning Forum project in Jordan.

What is a graduate-level job, and how much should graduates expect to be paid?

What is a graduate-level job, and how much should graduates expect to be paid? This was the theme of a talk that Daria Luchinskaya to undergraduate students at the University of Warwick as part of an event focusing on career planning, ‘Scholars’ Personal and Professional Development Day: Forward Thinking’, held earlier this year.

The event was aimed at undergraduates in different stages of their degree, from across the University. Students attended a mix of interactive sessions and presentations, including how to make the most of careers fairs, writing an ‘elevator pitch’, the role of extracurricular activities. The aim of the event was to offer students, especially those from widening participation backgrounds, information about career development that students from more privileged backgrounds often take for granted.

Daria’s presentation focused on three main points – what do graduates do, how can we say what is or isn’t a graduate-level job, and where we might find out information about earnings. Different sources of data were highlighted throughout the presentation. Using ‘What do graduates do?’ data from Prospects, we looked at the breakdown of the most frequently held types of job six months after graduation. The top three destinations were health professionals (of graduates in employment, around 20 per cent worked in these roles), business, human resources and finance professionals (20%), and retail, catering, waiting and bar work roles (10%).

But how can we distinguish between what is an is not a graduate job? A graduate scheme might come to mind, but these are just one type of graduate jobs. We might think about the skills and knowledge used at work. Indeed, the ONS measure of graduate jobs uses a definition developed by Professors Peter Elias and Kate Purcell at the IER, which emphasizes that graduate jobs “normally require knowledge and skills developed on a three-year university degree to enable [job holders] to perform the associated tasks competently”. Based on this definition, 100% of the SOC 2010 professional occupations are classified as ‘graduate-level’, followed by three quarters of managers, director and senior officials, and around half of associate professional occupations. None of the retail jobs is classified as graduate-level, however. Thinking about the use of knowledge and skills at work provides a more nuanced definition of graduate jobs than the ‘high-skilled work’ definition, which applies to all managerial, professional, and associate professional occupations.

Last, we might consider what is an appropriate graduate-level salary. Students were invited to shout out their guesses – these ranged considerably, but were not far off the ballpark (inasmuch as a ballpark can be said to exist). Estimates circulated in the media range between £28,000-30,000 per year (e.g. supported by figures from High Fliers and the Institute of Student Employers, but these tend to be geared towards large companies that tend to run graduate schemes) to £19,000-22,0000 per year (supported by DLHE data and graduate-jobs.com). Pay also tends to vary by location – Daria asked the students to guess the regions for the top and bottom starting salaries in UK regions. The top one was London, at almost £25,000 (easy!), and the bottom? Wales, at £20,600, narrowly behind Northern Ireland. Graduate salaries also vary quite widely by industry, so it may help to have an idea of industry norms. The presentation suggested useful links for further information.

To show some of the rich data available, Daria demonstrated the LMI for All Careerometer widget, that was very popular with the students and with the Careers Services facilitating staff. The students offered suggestions for jobs to explore (careers adviser was one of the suggestions – there was a good sense of humour in the room), and Daria showed how different aspects of different jobs could be compared, in terms of pay, number of hours worked, and future trends. Students thought that the widget was very useful because it offered a range of information and it was easy to do an ‘at a glance comparison’.

Overall, the event was very successful, and the students though that it was very useful. The data capabilities of LMI for All are clearly well appreciated, and there is demonstrable appetite for similar, easy-to-use comprehensive information about jobs and future trends.

D Luchinskaya

Blog post written by Dr Daria Luchinskaya now working at the University of Strathclyde.

 

 

 

 

Further reading