North East tops UK for workplace participation equality despite rising female unemployment, in PwC’s Women in Work Index

• North East leads the UK on gender equality in workplace participation, ranking first nationally with the smallest gap between men’s and women’s participation rates at just 4.4%, well below the national average of 7.1%

• The North East drops one place to fifth overall in the Index, despite a 0.5‑point increase in its score, as female unemployment rose to 3.8% 

• The UK climbs one place to 17th in OECD rankings, but underlying progress has stalled, held back by rising female unemployment 

• Reducing young female NEET rates to 3.6% could add up to £11 billion to UK GDP

The North East has the smallest gap between women's and men's participation in the workplace, topping the list of the UK nations and regions, according to PwC’s Women in Work Index. The gap is just 4.4%, compared to a national average of 7.1%.

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

Overall, the region ranked fifth out of 12 UK nations and regions and while this represents a one‑place fall in the rankings, the North East still recorded a 0.5‑point increase in its Index score, indicating modest underlying improvement despite increased competition from other regions.

The data also highlights emerging challenges. The North East experienced a 0.61 percentage‑point rise in female unemployment, increasing to 3.8%. This shift saw the region fall three places in the unemployment rankings year on year.

At the same time, female labour force participation declined by 1.1 percentage points, falling to 71.7%. As a result, the North East now ranks 10th out of 12 regions on this measure, placing it among the lower‑performing regions for women’s participation in the workforce.

UK data as a whole shows that progress across the OECD has slowed to its weakest level since the pandemic, driven by a historic fall in full time employment for women and rising unemployment rates. The UK’s performance is held back by rising female unemployment and falling fulltime work.  

The UK’s Index performance in-depth   
   
Although the UK’s overall Index score increased marginally (+0.16 points), the climb in the rankings was mostly due to declines in other countries’ performance. If the UK’s improvement had matched Australia’s since 2020, it would have placed fourth in the Index rankings rather than 17th. A deep dive into the UK’s performance against these indicators reveals:  

• Female unemployment increase: Female unemployment rose from 3.5% to 4.2%, making it the biggest driver of the UK’s static performance this year. This increase reflects wider labour market pressures and marks a reversal of previous gains. Youth female unemployment also increased from 9.5% to 11.8%, highlighting growing pressures in the early career labour market and raising concerns about long-term progression for young women. Supplementary PwC analysis of NEET (not in employment, education or training) levels finds that young women with poor GCSE results have a one in four likelihood of being NEET, compared to one in five for young men with similar attainment.  

• Narrow improvement in female labour force participation: The UK’s female participation rate edged up from 74.8% to 75.0%, remaining above the OECD average of 73.1%. However, the modest increase suggests limited improvement in women’s overall engagement with the workforce. The gap between male and female participation narrowed from 7.8% to 6.4%, largely driven by rising male economic inactivity rather than meaningful gains in women’s participation.  

• Gender pay gap remains worse than OECD average: The UK’s gender pay gap narrowed slightly, falling from 13.3% to 13.1%. Northern Ireland is the only region were the gender pay gap has widened since 2020. Progress continues to lag behind the OECD average of 12.4%, indicating slower movement toward pay equality compared to peer economies.  

• Decline in female fulltime employment rate: The fulltime employment rate for women fell by 1.2 percentage points to 67.7%. While this reflects a broader OECD shift toward part-time work, it also highlights the combined impact of limited access to secure full-time roles and the reduced take-up of full-time work. High childcare costs, limited affordable wraparound care, and long working hours make full-time employment less feasible for many women.  

NEET levels among young women  

PwC’s latest analysis shows the UK could unlock major economic gains by reducing the number of young women who are not in education, employment or training (NEET). Germany and the Netherlands have some of the lowest NEET rates in Europe. Bringing female NEET rates in line with Germany could add £5 billion to UK GDP, while matching the Netherlands could deliver up to £11 billion. Even returning to the UK’s 2021 level 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% to 13.6% 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% vs 19.4%). 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% of young women, compared with 23.6% 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% compared with 12%). Taken together, these findings highlight both the scale of the challenge and the size of the opportunity. Intervening earlier, addressing education, health and the career pathways girls are encouraged to consider, will be critical to improving outcomes for young women and unlocking economic gains for the UK.  

Susan McNally, Managing Director at PwC’s Newcastle office, said: 

“The North East’s leading position on workplace participation equality shows what is possible when barriers facing women are removed. But the latest data reminds us that progress cannot be taken for granted. Rising female unemployment and falling participation risk reversing these gains if they are not addressed now.

“The challenge now is to build on the region’s strengths by investing in skills, education and clear pathways into work, so women - particularly young women - can stay connected to the labour market and contribute to long‑term growth across the North East.”

Carol Stubbings, UK and EMEA Managing Partner at PwC, said:

“While the UK has regained its position as the highest‑ranking G7 economy for women in work, the story beneath the headline is more complex. Rising female unemployment, especially among young women, points to underlying weaknesses in our labour market at a time when AI is reshaping the economy and the skills needed.

“The countries that succeed will be those that invest in strong foundations in education and continued skills development. Employers have a crucial role in creating clear pathways into work and helping their people continue to learn and adapt. Reducing the number of young women who are NEET is not only a social imperative – it is an economic one, with billions in potential GDP at stake.”

About the data

1. The international Index rankings are based on 2024 data, due to a lag in availability of annual data across all indicators and countries in the Index. This is the latest annual data available at the time of publication.

2. The PwC Women in Work Index began in 2011 and tracks the progress of women in the workplace across the 33 OECD countries using a combination of indicators to gain a holistic view of labour market performance for women. The five indicators that make up the Women in Work Index are: the gender pay gap, the female labour force participation rate, the gap between male and female labour force participation rates, the female unemployment rate, and the female full-time employment rate.