West Midlands records largest gender pay gap reduction in UK – report

The West Midlands has recorded the largest reduction in the gender pay gap of any UK region - narrowing by 2.8 percentage-points to 12.2 per cent, according to PwC’s Women in Work Index 2026.

PwC’s 2026 Index, now in its 15th year, tracks the progress of women in the workplace across the 33 OECD countries using five indicators covering pay, participation, unemployment and full-time employment for women.  

The Index shows that the UK has regained its position as the top‑ranking G7 country for women’s economic empowerment, though the improvement in ranking stems largely from other countries slipping behind. 

Overall, national progress has slowed, as rising female unemployment and declining access to full‑time roles continue to weigh on overall performance and a continued shift away from full‑time work.  

PwC’s latest analysis also shows the UK could unlock major economic gains by reducing the number of young women who are not in education, employment or training (NEET). Returning to the UK’s 2021 low would generate a further £3 billion. 

The report examines why nearly 946,000 16 to 24-year-olds - almost one in eight - are now NEET, up from 11.9 per cent to 13.6 per cent 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 per cent vs 19.4 per cent. 

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. 

Health conditions remain a key driver affecting 20.0 per cent of young women, compared with 23.6 per cent of young men, with mental health pressures rising across both groups. 

When low attainment coincides with a health condition, young women become almost four times more likely to be NEET than the average young woman, (48 per cent compared with 12 per cent).

Meanwhile, the East Midlands stands out as the most improved region for the progress of women in the workplace.

The region’s Index score rose by 8.1 points, lifting the region two places in the rankings.  

This improvement was driven by a 3.0 percentage‑point rise in the female labour force participation rate, a 4.5 percentage‑point fall in the participation rate gap, and a 1.7 percentage‑point reduction in the gender pay gap.  

Overall, the Index recorded a significant narrowing of regional disparities across the UK, with the gap between the highest and lowest‑performing regions narrowing by 7.5 points, an important reversal of last year’s widening and largely attributable to the momentum in the East Midlands.  

Although the West Midlands did not match the scale of improvement seen in the East Midlands, both regions moved up the Index rankings this year, rising by one and two places respectively. 

The East Midlands delivered one of the strongest performances on participation, with female labour force participation increasing by 2.96 percentage-points and the participation rate gap falling by 4.53 percentage-points, the biggest reduction of any region - highlighting both progress and the uneven nature of labour‑market pressures across the Midlands. 

The South West climbed five places to become the UK’s top‑ranked region, supported by the highest female participation rate and a sharp fall in its participation rate gap.  

At the other end of the spectrum, London slipped to 12th place, recording both the highest female unemployment rate and the largest participation gap, despite remaining the strongest region for full‑time female employment.

Alex Hudson (pictured), market senior partner East Midlands, PwC UK said: “The East Midlands’ strong performance this year shows what real progress can look like - rising participation, a narrowing pay gap and the biggest improvement of any UK region.

“The region is making a real difference and playing a significant role in the narrowing of regional disparities across the UK. 

“The East Midlands is a reminder that meaningful change is possible, but we need consistent action across every region to strengthen opportunities for women in work. 

“However, the journey toward gender equity still has a long way to go. The levels of young women who are not in employment, education or training is on the rise, and as workforce needs continue to adapt at pace, engaging with this group is essential to the economy. 

“This is one priority we can’t afford to let fall down the agenda.”