North West records strong performance in PwC’s Women in Work Index

• North West ranks second nationally for female full‑time employment (63.1%) and narrows participation gap by nearly 2 percentage points

• Climbing the UK rankings, the North West moves up to sixth place overall after recording a 3.9‑point increase in its Index score - the third largest improvement of any region

• 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 West has climbed the UK regional rankings for gender equality, recording one of the strongest improvements nationwide, 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 UK regions and 33 OECD countries using five indicators covering pay, participation, unemployment and fulltime employment for women.

Overall, the North West outperformed the regional average in three out of five key indicators, including: participation rate gap, female full‑time employment and the gender pay gap. The region ranks second across the UK in female full‑time employment, recording a rate of 63.1%, well above the regional average of 59.8%. 

One of the most significant gains was seen in the participation rate gap, which narrowed by nearly 2 percentage points (1.97%). This improvement propelled the North West up three places on this indicator alone, signalling meaningful progress in closing the gap between women and men’s participation in the labour market. 

However, according to the Index, the female unemployment rate in the North West has increased to 4%, higher than the UK average of 3.4%. This is the third highest of all the UK regions.

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 fulltime 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 that: 

• 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 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 parttime work, it also highlights the combined impact of limited access to secure fulltime roles and the reduced take-up of fulltime work. High childcare costs, limited affordable wraparound care, and long working hours make fulltime 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 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% 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.

Laura Nadel, Manchester Market Senior Partner at PwC UK, said: 

“Our data shows the North West making meaningful gains - climbing the Index, closing the participation gap and emerging as a national leader in female full‑time employment. It’s progress that matters for women and for the regional economy. 

“However, there is still work to do and the North West’s ranking as 10th in the UK for female unemployment reflects wider labour market pressures. The focus must be on building strong foundations in skills, education and lifelong learning. Employers have a critical role to play in creating clear pathways into work and supporting women to adapt and progress throughout their careers. Ensuring young women are engaged in education or employment is not just a social priority for the region, it’s an economic one, with long‑term growth and productivity at stake.”

Alia Qamar, Senior Economist at PwC UK, said:

“This year’s Index shows both the scale of progress since 2011 and how fragile that progress has become. The rise in young women becoming NEET, often driven by the intersection of health and educational barriers, mirrors wider pressures on women’s employment across the OECD. Crucially, the analysis shows these risks don’t just add up, they compound. Young women who leave school with low GCSE grades and also have a health condition face a far steeper challenge. This combined effect shows that the roots of inequality begin long before young women reach the jobs market, and why early support in school is so critical.

“Countries performing better than the UK demonstrate what’s achievable and how closing that gap would deliver meaningful gains. Regional disparities remain stark, with London continuing to lag, underscoring how structural pressures shape women’s outcomes and why targeted action is so critical.”

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.