The Gender Pay Gap in Alberta: A Deep Dive

Despite progress in gender equality, a significant pay gap persists between men and women in Alberta. This article delves into the current state of the gender pay gap in Alberta, comparing it with other Canadian provinces and exploring the multifaceted factors contributing to this disparity.

The Current State of the Gender Pay Gap in Alberta

In 2023, women in Canada earned 86 cents for every dollar earned by men, based on median hourly wages across all occupations. However, the situation is more pronounced in Alberta, where women earned only 76 cents for every dollar earned by men1. This disparity places Alberta among the provinces with the highest gender pay gaps in Canada. In fact, in 2023, only Newfoundland and Labrador had a higher pay gap than Alberta2. While Alberta women generally earn higher hourly wages than women in other provinces, they still lag significantly behind their male counterparts in the province. The pay gap in Alberta is estimated to be around 40%, with women's wages often clustered at the lower end of the pay scale. This trend is particularly concerning given that Alberta women tend to be highly educated.

It's important to note that the narrowing of the gender pay gap in Alberta is partially attributed to a decrease in men's income, particularly following the oil price collapse of 20143. While women's incomes have steadily grown, the decline in men's earnings has contributed to the shrinking gap3.

Looking beyond hourly wages, the gender pay gap for annual wages, salaries, and commissions in Canada was 0.71 as of 2019, meaning women earned 71% of what men made annually4. This broader perspective highlights the persistent disparity in earnings between men and women.

The UN's Human Rights Committee has expressed concerns about the "persisting inequalities between women and men" in Canada, including the "high level of the pay gap" and its disproportionate impact on low-income women, racialized women, and Indigenous women5. This international perspective underscores the importance of addressing the gender pay gap as a human rights issue.

Comparing Alberta to Other Provinces

When comparing Alberta to other provinces, the data reveals a varied landscape. British Columbia's 2023 median gender pay gap was 17%, while Newfoundland and Labrador had a 19% gap2. These figures are lower than Alberta's 24% gap, highlighting the severity of the issue in Alberta2. In contrast, Prince Edward Island reported a significantly lower gender pay gap of 4%6. These provincial variations suggest that factors beyond national policies are influencing the gender pay gap.

Interestingly, the gender wage gap has declined in most age groups across Canada since 20077. For instance, the wage gap for older Canadian-born women (aged 45 to 49 years) narrowed from 21% in 2007 to 14% in 20227. This suggests that progress is being made, albeit at different rates across demographics.

On a national level, the average gender pay gap in Canada is 11.1%, with women workers earning that much less per hour than men8. This provides a benchmark for understanding Alberta's situation within the broader Canadian context.

Furthermore, the federal public service in Canada has seen a decrease in the overall wage gap between men and women9. The gap, calculated as the difference between the average hourly wage of all men and all women, decreased from 10.5% in 2009-2010 to 8.2% in 2019-20209. This suggests that targeted policies and initiatives within specific sectors can contribute to closing the gender pay gap.

Factors Contributing to the Gender Pay Gap in Alberta

Several factors contribute to the gender pay gap in Alberta:

• Occupational Segregation: Women are overrepresented in lower-paying occupations, such as those in the caregiving and service sectors (e.g., childcare workers, nurses, social workers)1. These sectors often have lower wages and fewer opportunities for advancement compared to male-dominated fields like STEM (science, technology, engineering, and mathematics) and trades (e.g., electricians, plumbers, carpenters). This disparity is rooted in societal norms and expectations that steer women towards certain career paths and limit their access to higher-paying opportunities.

• Time Off for Caregiving: Women are more likely to take time off work for childcare or eldercare responsibilities, leading to career interruptions and reduced work experience1. This can impact their earning potential and career progression, as they may face challenges in re-entering the workforce or catching up with their male counterparts who have continuous work experience.

• Unpaid Care Work: Women disproportionately shoulder the burden of unpaid care work, such as household chores and childcare10. This unpaid labor limits their ability to participate fully in the workforce and pursue higher-paying positions. The time and energy dedicated to unpaid care work can restrict women's career options and hinder their economic advancement.

• Discrimination: Despite legislation against gender discrimination, conscious and unconscious biases can still influence hiring decisions, promotions, and salary negotiations1. These biases can result in women being offered lower salaries, passed over for promotions, or facing barriers to career advancement, even when they have the same qualifications and experience as their male counterparts.

• Lack of Pay Transparency: Alberta currently lacks pay transparency laws, making it difficult for women to compare their salaries to those of their male colleagues and identify potential pay disparities6. This lack of transparency can perpetuate wage gaps and make it harder for women to advocate for fair compensation.

Initiatives to Address the Gender Pay Gap in Alberta

While Alberta faces challenges in closing the gender pay gap, various initiatives are underway to address this issue:

• Support for Women Entrepreneurs: Organizations like Alberta Women Entrepreneurs provide loans, networking opportunities, and learning resources to support women in starting and growing businesses1. By fostering women's entrepreneurship, these initiatives contribute to economic empowerment and create opportunities for women to overcome traditional barriers in the workplace.

• Affordable Childcare: The Alberta Child Care agreement aims to improve access to affordable childcare by providing grants to childcare operators and expanding subsidies for eligible parents11. This initiative can help reduce the burden of childcare costs on women and enable greater workforce participation. By making childcare more affordable, this agreement has the potential to increase women's labor force participation and contribute to closing the gender gap in the long term11.

• Advocacy for Pay Equity: Organizations like the Alberta Union of Provincial Employees (AUPE) are advocating for pay equity legislation in Alberta12. They are working to educate members and the public on pay equity issues and lobby the government for legislative changes. These advocacy efforts are crucial for raising awareness and pushing for policy changes that promote fair compensation for women.

• Addressing Gender-Based Violence: Funding is being provided to 2SLGBTQI+ organizations in Alberta to address gender inclusion and improve services for marginalized communities13. This can indirectly contribute to economic security for women facing intersectional challenges. By addressing the unique needs and vulnerabilities of marginalized women, these initiatives promote inclusivity and create a more equitable society.

Organizations Advocating for Pay Equity in Alberta

Several organizations in Alberta are actively advocating for pay equity:

• AUPE: This union is campaigning for pay equity legislation and educating its members on pay equity issues12.

• Business Council of Alberta: This organization partners with groups like Axis Connects to support women in leadership roles and professional development11.

• Ask Her YYC: This organization encourages and supports women's participation in politics11.

Academic Research and Reports

Academic research highlights the severity of the gender pay gap in Alberta. A 2016 study by the Parkland Institute found that Alberta had the largest gender income gap in Canada, with women earning 41% less than men10. This gap widens to 50% when considering total market incomes, including all sources of income10. The study emphasizes the need for pay equity legislation and policies to address this disparity.

Furthermore, employment statistics from Statistics Canada show a significant wage discrepancy between men and women in Alberta. In November 2021, Alberta men made nearly $6 more an hour than women14. This concrete data underscores the need for continued efforts to close the pay gap.

Conclusion

The gender pay gap in Alberta remains a significant concern, with women earning considerably less than men. Occupational segregation, caregiving responsibilities, unpaid care work, discrimination, and lack of pay transparency are all contributing factors to this persistent disparity. However, there is hope for progress. Initiatives such as supporting women entrepreneurs, increasing access to affordable childcare, and advocating for pay equity are crucial steps towards creating a more equitable society.

Addressing the gender pay gap requires a multi-pronged approach that combines policy changes, support for women entrepreneurs, and advocacy efforts1. By tackling the root causes of the pay gap and promoting women's economic empowerment, Alberta can move towards a future where women and men are compensated fairly for their work. This requires a collective effort from government, businesses, organizations, and individuals to challenge gender norms, promote pay transparency, and create a workplace where women can thrive.

Works cited

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2. Pay Transparency Report – June 2024 - Gov.bc.ca, accessed January 1, 2025, https://www2.gov.bc.ca/assets/gov/british-columbians-our-governments/services-policies-for-government/gender-equity/annual-report-2024.pdf

3. Weekly EconMinute—The income gap of women in Alberta, accessed January 1, 2025, https://businesscouncilab.com/insights-category/economic-insights/weekly-econminute-the-income-gap-of-women-in-alberta/

4. Gender Pay Gap in Canada - Canadian Women's Foundation, accessed January 1, 2025, https://canadianwomen.org/the-facts/the-gender-pay-gap/

5. By the Numbers – Gender Pay Gap | UFCW Canada - Canada's Private Sector Union, accessed January 1, 2025, https://www.ufcw.ca/index.php?option=com_content&view=article&id=33374:by-the-numbers-gender-pay-gap&catid=10342&Itemid=6&lang=en

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7. The Daily — Intersectional Gender Wage Gap in Canada, 2007 to 2022, accessed January 1, 2025, https://www150.statcan.gc.ca/n1/daily-quotidien/230921/dq230921b-eng.htm

8. Gender pay gap in Canada's banking sector at 18.4 per cent, data shows - Global News, accessed January 1, 2025, https://globalnews.ca/news/10273328/gender-wage-gaps-canada/

9. Fact Sheet: Compensation of Women and Men in the Federal Public Service - Canada.ca, accessed January 1, 2025, https://www.canada.ca/en/treasury-board-secretariat/topics/pay/pay-equity/fact-sheet-compensation-women-men-public-service.html

10. Equal Worth: Designing Effective Pay Equity Laws For Alberta - Parkland Institute, accessed January 1, 2025, https://www.parklandinstitute.ca/equal_worth

11. Empowering equal pay: Women still wrestle to close the wage gap in Alberta, accessed January 1, 2025, https://calgaryjournal.ca/2024/11/20/empowering-equal-pay-women-still-wrestle-to-close-the-wage-gap-in-alberta/

12. Pay and Social Equity Committee - AUPE, accessed January 1, 2025, https://www.aupe.org/about/committees/pay-and-social-equity-committee

13. Parliamentary Secretary Hepfner announces funding for 2SLGBTQI+ organizations in Alberta to improve gender inclusion - Canada.ca, accessed January 1, 2025, https://www.canada.ca/en/women-gender-equality/news/2024/08/2slgbtqi-organizations-in-alberta-to-benefit-from-funding-to-improve-gender-inclusion.html

14. Alberta's gender wage gap highest in Canada, accessed January 1, 2025, https://albertaworker.ca/news/albertas-gender-wage-gap-highest-in-canada/

15. Women's economic security | Alberta.ca, accessed January 1, 2025, https://www.alberta.ca/womens-economic-security