The Gender Pay Gap is Real

We explore what the wage gap is, why it exists, and what can be done to help close it.

The Pay Equity Act was established in 2018 to address wage disparities and enforce equal pay for work of equal value, reflecting a strong commitment to gender equality within the workforce. Despite considerable strides towards closing the gender pay gap, it remains a significant issue in Canada. Even with substantial progress towards pay equity and notable advancements by women in educational achievements, women still earn less than men on average.

Canadian government labour force data supports the presence of the wage gap. However, some skeptics argue that the gap is not primarily a result of discrimination but rather of women's choices. These critics suggest that women may prefer to work in lower-paying fields, avoid negotiation or competitive scenarios, or choose to take extended career breaks for family care. On the other hand, some contend that the gender wage gap is a myth and claim it does not exist at all.

The gender pay gap in Canada is, in fact, real but highly complicated and varies across provinces and industries. It has many influencing factors, including ethnicity, disability, age, industry, and education. In this guide, we explain what the gender wage gap is and how it has evolved over time. We also provide concrete statistics and suggestions on what must happen to close the gap.

What is the Gender Pay Gap?

The gender pay gap reflects the disparity in earnings between men and women in the workforce. It is often measured by calculating the median annual salaries for men and women who work full-time and year-round, then analyzing the differences. While various reputable Canadian institutions have calculated this gap in diverse ways, the general finding is consistent: women tend to earn less than men, with the gap widening further for women of colour.

It's also important to understand that there are two distinct types of gender pay gaps:

  1. Unadjusted or uncontrolled pay gap. This measures the difference between the median salaries of all men and women without accounting for variables like job title, experience, hours worked, or education. This broad analysis provides a comprehensive overview that is useful for identifying potential pay disparities across different sectors and job types.
  2. Adjusted or controlled pay gap. This compares the earnings of men and women with similar jobs and qualifications, adhering to the principle of equal pay for equal work. This approach helps pinpoint other factors that may contribute to pay disparities, such as career progression and work-life balance choices.

These metrics help policymakers, researchers, and advocacy groups understand the scope of the wage gap, analyze trends over time, and develop strategies for achieving pay equity. They're essential tools in the ongoing effort to address gender-based pay disparities in the labour market.

Gender Pay Gap Statistics

Let’s shed some light on the most noteworthy facts and statistics in order to have some common misconceptions about the gender pay gap debunked:

  • In 2022, women earned, on average, 13% less than men, reflecting a shrinking but still significant gender pay gap.
  • As of 2022, the unadjusted pay gap is approximately $0.87 for every $1 that men make, indicating that women earn 87 cents for every dollar men earn. When comparing men and women with similar job titles, experience, and hours worked, the adjusted pay gap is about $0.98 for every $1 men earn.
  • Women face wider pay gaps in traditionally male-dominated industries such as technology and engineering. Additionally, when women enter these sectors, there is a tendency for the median salaries to decrease.
  • Women are also less likely to receive promotions and equitable pay in leadership roles across Canada, mirroring global trends.
  • Women of every ethnicity earn less than their male counterparts, with Indigenous women and women of colour facing more pronounced disparities.
  • The gender pay gap also varies by province, with regions like Alberta and British Columbia showing larger gaps (22% to 25%) due to the predominance of high-paying, male-dominated industries such as oil and gas.
  • With the existing wage gap, women effectively earn less over the year, which can be equated to working part of the year for free compared to men.
  • Over the course of a career, the gap accumulates, particularly affecting women aged 55-64. This is when the gap reaches its peak, reflecting the cumulative effect of career-long inequities that women face.

How Has the Gender Pay Gap Changed Over Time in Canada?

Over the decades, Canada's efforts to narrow the gender pay gap have been marked by both societal progress and significant legislative interventions. One of the foundational pieces of legislation in this arena is the Canadian Human Rights Act, enacted in 1977. This act was crucial in promoting equal opportunities and explicitly prohibiting discrimination on various grounds, including gender.

Following this, the Employment Equity Act of 1986 aimed to improve employment opportunities for not only women but also other groups historically marginalized in the workplace, such as Indigenous peoples, persons with disabilities, and members of visible minorities.

Provincial legislation also plays a crucial role in shaping the pay equity landscape. For example, Quebec's Pay Equity Act, established in 1996 requires employers within their jurisdictions to maintain ongoing pay equity, adding a layer of regulation that complements federal efforts. These laws mandate the initial achievement of pay equity and the continuous monitoring and adjusting of compensation practices to prevent regression.

In recent years, the Pay Equity Act of 2018 has been a cornerstone in directly addressing pay disparities within federally regulated industries. This legislation, with its proactive approach, mandates equal pay for work of equal value and requires employers to assess and adjust their pay practices to ensure fairness. This highlights the government's unwavering commitment to not just equal opportunity but equal outcomes.

The Best and Worst Industries for the Gender Pay Gap

The gender pay gap reflects complex socio-economic dynamics and varies significantly across industries. This disparity is influenced by factors such as sector-specific norms, the concentration of genders in certain types of jobs, and broader societal and economic conditions.

Despite advances, challenges persist, particularly in industries dominated by what is known as the "5 Cs": caring, clerical, catering, cashiering, and cleaning. These sectors employ a disproportionate number of women, particularly those who are racialized, immigrant, or migrant, and are characterized by lower pay and precarious employment conditions.

Industries with Larger Gender Pay Gaps

Gender pay gaps are more pronounced in industries traditionally dominated by men, such as construction, manufacturing, natural resources, and STEM (Science, Technology, Engineering, and Mathematics.) These sectors often offer higher wages and benefits, typically with union backing, which can amplify the wage disparities compared to sectors that employ a higher percentage of women. Additionally, management positions across various sectors also show significant pay disparities, with men dominating these roles and earning substantially more.

Industries with Smaller Gender Pay Gaps

Conversely, sectors like healthcare and education, which employ a higher percentage of women, show relatively smaller pay gaps. These sectors often benefit from more structured pay scales and unionization, which help standardize and elevate wages across the board, reducing the opportunity for gender-based wage disparities. However, even within these sectors, specific roles, especially those that are part-time or contractual and typically lower-paid, tend to widen the gap, reflecting the need for ongoing vigilance and policy intervention.

Gender Wage Gap Laws, Legislations, and Celebrations

Recent legislative developments, particularly in British Columbia, Prince Edward Island, and Ontario, have shown a strong move towards improving pay transparency to address the gender pay gap. In British Columbia, the Pay Transparency Act was enacted in 2023, which imposes several new obligations on employers. These include prohibiting employers from requesting pay history from job applicants and mandating that pay ranges be included in job postings.

Ontario has also revisited pay transparency legislation, proposing new laws that require the disclosure of salary bands in job postings, aiming to enhance transparency and fairness in compensation. This renewed push reflects a broader trend across the province to address wage inequities through legislative action.

In an effort to raise public awareness about gender-based disparities, Equal Pay Day is celebrated to highlight the additional time women must work to earn the same amount that men earned in the previous year. This day varies each year and can differ by province, reflecting the regional wage gaps.

This regional variation allows for more targeted awareness and advocacy efforts that address local economic conditions and employment practices. It serves as an occasion for advocacy groups, policymakers, and the public to engage in discussions, participate in workshops, and join public demonstrations that advocate for equitable pay.

Moreover, Canada also aligns with global efforts by observing International Equal Pay Day, which falls on September 18th. This day underscores the universal challenges of achieving gender pay equity. It encourages a global dialogue and concerted actions to address these issues.

What to Do If You Suspect Pay Discrimination at Work

If you feel you're a victim of unfair pay based on your gender, there are several steps you can take to protect your rights and address the gender pay gap in a positive but assertive way:

  • Do your research. Before bringing the issue to your employer's attention, find out if your province has any other equal pay laws outside of the federal laws. For more information on your legal rights, visit a federal agency such as the Canadian Human Rights Commission (CHRC) website or your provincial or territorial labour board. You should also refer to your employee handbook to see what policies might be in place to protect you.
  • Gather evidence. Collect as much information as possible about your own pay and the pay structure within your company. This includes your job description, pay stubs, any relevant communication regarding pay decisions and comparative information about colleagues in similar roles with similar qualifications and experience.
  • Start a conversation. Your boss or supervisor may not be aware of the pay disparity. Schedule a meeting to present the facts and discuss your concerns. If this doesn't yield results, consider contacting the human resources department, which may have access to more helpful resources.
  • Find legal help. You can go to your local bar association or legal aid organization to find a lawyer specializing in employment discrimination. You can also find a legal referral through national groups like the Canadian Bar Association. Check your provincial and federal laws first to determine the time limits for filing a legal claim.
  • Seek external support. Consider reaching out to organizations specializing in employment rights, such as the Workers' Action Centre or similar groups in your area. These organizations can provide advice, support, and sometimes advocacy.
  • Look into public funding and support. In some cases, public funding for legal support in cases of discrimination may be available through programs like Legal Aid, depending on your income level and the specifics of your case.

How Can Women Help to Close the Gender Pay Gap?

Standing up for what you believe in can be difficult, but it's necessary and ultimately liberating. There are ways for women to take matters into their own hands to address pay inequality. You can start by researching salary figures and talking to decision-makers in your industry.

This can provide the knowledge and confidence to ask for a raise or a promotion. Plus, if you’re looking to switch careers, you’ll have the tools and resources to ask for what you’re worth.

Initiating a women's group in the workplace can effectively bring women together to address the gender pay gap. It can provide mentoring, professional development events, and opportunities to share experiences and challenges.

You can also join advocacy groups such as the Equal Pay Coalition to help support existing laws against gender pay discrimination. No matter the strategy, women have the power to change the future and raise the bar in today's workplace.

Find a Job That Pays What You Deserve

The first step in helping to close the gender pay gap is knowledge. Now that you're equipped with the facts, you have more power when negotiating a higher salary. If you've decided to move on and are looking for a career that will pay you what you're worth, we can help. Join Monster for free today. As a member, you'll receive expert career advice and job leads to help you climb the ladder to success.

This article is not intended as a substitute for professional legal advice. Always seek the professional advice of a lawyer regarding any legal questions you may have.