European Job Market Inequalities Waste Economic Potential, Require Half a Century to Resolve

In Poland and the European Union, gender equality remains an unfulfilled goal. Despite being relatively high compared to other parts of the world, pressing issues persist. Women tend to have better educational qualifications than men but often fail to advance in their careers. This disparity is not only a social concern but also represents a tangible loss in innovation and economic competitiveness.

Current Gender Inequalities in the Workforce

Experts highlight that reforms regarding pay transparency and women’s representation in company leadership could drive change. The Gender Equality Index 2025, prepared by the European Institute for Gender Equality (EIGE), indicates that achieving full gender equality in Europe may take at least fifty years. Poland, in particular, lags behind the EU average in gender equality in various sectors, including political, economic, and social arenas.

Challenges for Women in the Job Market

• Many women drop out of the workforce due to family responsibilities, particularly during reproductive (ages 20-39) and retirement (ages 60-64) periods.
• The employment gap between childless men and women aged 25-54 is minimal at 1.5 percentage points; however, it widens significantly with children.
• With one child, the gap increases to 13.9 percentage points; with three, it expands to 34.3 percentage points, disadvantaging women.

Alicja Wejdner-Cichy, an economist and DEI expert from the Lewiatan Confederation, states that untapped female potential hinders economic growth and innovation. Women outnumber men in educational attainment and possess high competencies, yet they remain underutilized.

Wage Disparities

Salary inequalities are another significant issue. According to a report by the Congress of Women, 67% of surveyed women believe they earn less than their male counterparts for the same roles. Only 39% of men share this perception. This discrepancy can create obstacles in implementing equality initiatives.

EU Actions Toward Equality

The European Union plans to implement two key directives aimed at addressing these challenges:

• The first directive focuses on gender balance in publicly traded companies, requiring organizations with at least 250 employees to have a minimum of 40% female representation among non-executive directors by June 30, 2026.
• The second directive enhances salary transparency, mandating companies to disclose average wages by employee category, as well as the criteria for salary determinations and progression.

A study by the Business Leaders Foundation reveals that as of 2024, women comprised only 13.6% of executive boards and 18.7% of supervisory boards in Poland. Over 60% of companies had no women in senior management positions.

The Path Ahead

Despite the set deadlines for these regulations, there are concerns about implementation delays. Many companies have just begun preparations, facing numerous challenges along the way. Wejdner-Cichy emphasizes the need for thoughtful regulations but acknowledges that achieving equality will be a lengthy process.

Recent research conducted within the DEI Observatory at the Lewiatan Confederation shows that nearly half of the participating companies believe that salary reporting could reduce discrimination. However, a similar proportion doubts its effectiveness in improving workplace conditions for women. Common concerns include potential team tensions (62.3%), wage pressure (39.3%), and employee poaching by competitors (35.3%).