Guernsey’s economy would benefit if more women and people over the age of 50 entered the workforce, according to a survey conducted by PwC which was presented at a Chamber of Commerce Event yesterday.
Consultancy and advisory firm PwC also said its analysis indicated that if the island could match the female labour rate of Sweden (67%) Guernsey could achieve a 2% increase in GDP.
The statistics generated in the Women in Work Index 2023 were analysed and discussed during an event focused on unlocking the potential of human capital.
The Chief Strategy Officer at PwC, Lelya Yildirim, and Managing Partner, Evelyn Brady, took it in turns to touch on various facts revealed through their research, including Guernsey’s gender pay gap of 16% and the position of Guernsey on the WiW Index.
Pictured: Several indicators are used to generate the WiW index, with the most recent stats placing Guernsey and Jersey below the UK.
“What we're going to talk about here is this untapped talent pool that we already have in our islands,” said Ms Yildirim.
She said Guernsey is facing skills shortages, tighter public purse strings and a looming ageing population crisis, and it would be better to incentivise people over the age of 50 to re-enter the workplace and address the gender pay gap to boost the economy, rather than simply proposing budgetary cuts.
“Everyone has the right not to work, and many people choose not to work for very valid reasons - no one is forcing anybody to work,” said Ms Yildirim.
“However, our hypothesis is that if some of the barriers were removed, a good number of those people could be incentivized to come back into the workforce."
It was argued that the economic benefit to Guernsey would be huge, that closing the gender pay gap would increase female earnings by £159million and that raising the female labour rate above 65% would see millions in GDP raised.
The speakers at the PwC event called on business leaders and the government to make changes that will help women.
"I think government needs to take action now,” said Ms Brady.
"We have an ageing population, we have a significant number of opportunities that are opening up in our workforce, we need to increase revenue for government... so, it's imperative that we use every resource we have [and] one of those is the ‘non-working’ population.”
She said there needs to be a strategy to target ‘non-employed’ talent pools, a review of parental leave and childcare entitlements to allow new mothers to get back into work easier, better states supported childcare, upskilling programmes for older employees and legislative moves to encourage employers to report their gender pay gap and allow for flexible working.
Despite this, Deputy Peter Roffey – who attended the event alongside politicians Deputy Lindsay de Sausmarez and Deputy John Gollop – bemoaned the lack of political presence at the event.
“It’s appalling,” he said, suggesting that he wouldn’t stand to defend the States of Guernsey but instead criticise the direction the current assembly is taking.
“We on the [Population Working Party] are always going on about this, and the eyes roll and we’re told this all just on the periphery, and what [these problems] really need is just more people... but it’s a road to nowhere.”
Pictured: Deputy Roffey speaking at the event.
The island has to tap into the maximum potential of people already on the island, according to Deputy Roffey.
“If we don’t realise that then, economically, we’re not going to flourish. So, I think we need to take this more seriously.”
He said, unfortunately, the political discussion at the moment is all about how the island can make more cuts and more savings, rather than exploring alternative longer term plans, such as expanding affordable childcare.
“We do actually have a task for P&R and ESS jointly to look at the whole issue of economic participation, and I am going to suggest that our guest speakers here today are given a slot to come along and address that working party because I think it's essential.
"I think this message is one that the States don't really get yet.”
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