Gender Pay Gap by Industry and Region (2025)

The gender pay gap remains large worldwide. In 2024, the World Economic Forum found that only two-thirds of the global gender gap had closed​. On average, women earn far less than men. For example, EU women earn about 13% less per hour​. This wage disparity costs European women roughly $4,639 per year​.

High-income countries show similar trends. In the United States, full-time women earned only about 83 cents for every dollar men earned in 2023​. Closing such gaps could raise global GDP by roughly 20%​. Without faster progress, parity remains distant, the WEF says it may take over a century to reach equal pay​.

Gender Pay Gap by Industry and Region: Trends and Statistics

Global Trends in Pay Gap

Worldwide progress has been very slow. The Global Gender Gap index rose only from 68.5% to 68.6% between 2023 and 2024​. No country has achieved full parity. In fact, only Iceland and a few European countries have closed over 90% of their gaps. Among OECD countries, the average pay gap remains substantial​. A World Bank estimate suggests closing labor-force gender gaps could raise global GDP by about 20%​, underscoring the economic cost of inaction.

Geographic variations are clear. Western Europe and North America have narrowed gaps thanks to strong equality laws. For example, EU pay-transparency rules help keep the average gap around 13%​; in the US and Canada, women in full-time jobs earn roughly 83–90% of men’s pay​. In contrast, large gaps persist in many Asian and developing economies. Japan’s adjusted gender wage gap is around 25%. Emerging markets in Latin America have made some gains but still exhibit double-digit gaps. Without accelerated action, the gender pay gap will linger for generations.

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Pay Gap by Industry

Gender wage differences vary sharply across industries. High-paying sectors with few women show the largest gaps. For example, in the United States the finance and insurance industry stands out: women earned only about 63 cents on the dollar compared to men​. Legal professions also exhibit extreme disparity – women in legal occupations earned roughly 55% of what their male counterparts earned​. Technology and professional services sectors are similar: women make on the order of 73% of men’s pay, reflecting both pay and participation gaps​. Women are also underrepresented in STEM fields (only about 28.2% of the workforce is female​), which contributes to these industry gaps.

By contrast, some fields show much narrower gaps. Industries dominated by lower-paid, more evenly distributed roles tend to have smaller disparities. U.S. data indicate construction has one of the smallest pay gaps: women earn about 95 cents for every dollar earned by men. Similarly, arts, entertainment and some service sectors report women earning roughly 89% of men’s pay​. In these fields both genders work comparable jobs at similar rates. However, even in these industries women still face a pay gap for the same roles, indicating that unequal pay can occur across all sectors​.

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Regional Disparities

Geography strongly influences the gender pay gap. Western economies generally show smaller gaps due to tighter regulations. In the European Union, equal-pay and pay-transparency laws have helped narrow the gap: on average EU women earn about 87% of what men earn​. In North America, similar figures hold – many countries report median female pay in the mid-80s percentile. Across OECD countries, the median female wage is roughly 88% of the male wage​.

The Middle East and North Africa (MENA) face much larger disparities, driven largely by low female employment. The region’s female labor-force participation is only about 19%​, the lowest globally. For example, Jordan’s female participation rate was only 14.9% in 2024. To address gaps, Jordan’s banking sector has announced plans to cut its internal gender gap to 12% by 2028​. Gulf countries (UAE, Saudi Arabia, etc.) have raised women’s workforce involvement through reforms, but experts warn that “a gender wage gap persists” in these markets​, reflecting cultural and structural challenges.

Causes of the Pay Gap

Multiple factors drive the gender pay gap. Occupational segregation is a major cause: women are overrepresented in lower-paid jobs and underrepresented in many high-paying fields​. For example, women are more likely to hold roles in education, administration or care industries, and far fewer in finance, tech or engineering. Even within the same industry, women often occupy lower-level or part-time positions, which lowers their average earnings.

Another key driver is the “motherhood penalty.” Women take on more childcare responsibilities and often work part-time or take career breaks. These pauses slow career progression and salary growth. Bias and discrimination compound these effects. Research notes that gender biases in hiring, promotion and pay decisions contribute significantly to the gap​. Standardized pay processes and transparent evaluation criteria are often lacking, so women may be passed over for raises or leadership roles. Together, these factors entrench pay differences across industries and regions.

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How to Close the Gender Pay Gap

1. Enforce pay transparency

Require firms to publish and explain their gender wage statistics. OECD research shows only about half of countries mandate pay-gap reporting​. Public disclosure laws (as in the EU) force companies to identify and fix unjustified discrepancies. For example, in some jurisdictions failure to report can result in fines or reputational damage. Transparency makes bias visible and empowers employees to demand equity.

2. Strengthen equal-pay laws

Governments should enforce strict “equal pay for equal work” regulations and impose penalties for non-compliance. For example, the 2023 EU Pay Transparency Directive requires companies to justify any pay differences​. Comparable mandates elsewhere would compel firms to align compensation and provide legal recourse to workers. Public awareness campaigns can complement laws by encouraging dialogue on pay equity.

3. Support working families

‍Expand affordable childcare, paid parental leave, and flexible work options. The WEF highlights that subsidized childcare and longer paid leave significantly reduce career interruptions for women​. Such support keeps women in high-skill jobs; countries with generous family policies tend to have narrower gender pay gaps. For instance, nations with low child care costs and inclusive parental leave often rank higher in gender parity.

4. Promote women in leadership and STEM

‍Set targets or quotas for female representation in management and technical fields. Companies should create internships, scholarships and training programs targeting women. For example, coding bootcamps and university outreach for women have significantly increased female enrollment in tech fields​. Over time, these efforts shift corporate culture, increase diversity of ideas, and reduce pay gaps at all levels.

5. Combat bias and discrimination

Provide unconscious-bias training to managers and enforce diversity hiring standards. Conduct regular compensation audits to uncover unexplained pay differences. Standardize promotion processes and ensure transparent evaluation criteria to give women equal advancement opportunities. Organizations with strong diversity commitments typically see faster closing of their pay gaps.

6. Set targets and quotas

‍Governments and companies should adopt specific numerical targets or quotas for women’s representation. For example, mandatory gender quotas on corporate boards (adopted in several European countries) have sharply increased women’s leadership presence. Such measures force organizations to include more women in senior, high-paid roles, narrowing gaps at the top.

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Conclusion

Women typically earn only about 82–88% of men’s pay (a 12–18% gap). Over a working lifetime, this disparity translates into hundreds of thousands of dollars in lost earnings for women globally each year.

Pay disparities are largest in sectors like finance, technology and law, where women may earn only ~55–63% of men’s pay​. Gaps are much smaller in fields like construction or certain services (women earn around 89–95% of men’s pay)​. Similarly, gaps are narrower in Western economies and widest in regions with low female labor-force participation​.

Enforcing pay-transparency and equal-pay laws, along with strong support for working families, has proven to narrow wage gaps​. Countries and companies that take gender pay equity seriously – such as Iceland, which has closed over 90%.

Every organisation and government can take action now to help close these gaps. In Jordan and across the GCC, addressing pay equity is crucial for attracting and retaining top talent and fueling economic growth. Narrowing the gender pay gap is both a moral imperative and an economic opportunity.