Report on Gender Pay Gap and Women’s Economic Empowerment in 2025

Introduction

In 2025, the enduring relevance of James Brown’s lyrics, “This is a man’s world…but it wouldn’t be nothing without a woman or a girl,” highlights the indispensable contributions of women across all sectors. Women have made significant advances in academia, medicine, sports, politics, and STEM fields, breaking glass ceilings as entrepreneurs and leaders. Despite these achievements, gender disparities, particularly in pay, persist.

Women’s Economic Influence and Spending Power

Women’s economic power continues to grow globally, influencing sustainable development and economic equality, which aligns with SDG 5: Gender Equality and SDG 8: Decent Work and Economic Growth.

1. According to Neilsen (2024), women control an estimated $31.8 trillion of worldwide spending.
2. Women are projected to control 75% of discretionary spending within the next five years.
3. Women influence 70-80% of all consumer spending decisions, highlighting their critical role in economic markets.

Persistent Gender Wage Gap

Despite women’s growing economic influence, wage inequality remains a major challenge, undermining efforts toward SDG 10: Reduced Inequalities.

• The Pew Research Center reports that in 2024, women aged 25 to 34 earned 95 cents for every dollar earned by men in the same age group, a 5-cent gap.
• Across all ages, women earned 85% of what men earned on average.
• Equal Pay Day, symbolizing the additional time women must work to match men’s earnings from the previous year, fell on March 25, 2025.
• For Black women, the pay gap is wider; they must work until July 10 to achieve parity with men’s previous year earnings.

Women’s Workforce Participation and Economic Contribution

Women’s participation in the labor market is a driving force behind economic growth and social development, supporting SDG 8: Decent Work and Economic Growth and SDG 5: Gender Equality.

• Women aged 25 to 54 reached a record employment rate of 75.3% in 2023, according to the Center for American Progress.
• Women sustain industries nationwide, despite leadership roles often being male-dominated.

Impact of Financial Inequality on Health and Well-being

Financial stress due to wage disparities affects physical and mental health, linking economic equality to SDG 3: Good Health and Well-being.

• Columbia University Irving Medical Center reports that financial wellness correlates with good health.
• High debt-to-income ratios and financial stress pose risks to physical and mental health.

Advocacy and Leadership for Closing the Pay Gap

Efforts to close the gender pay gap are ongoing, with leadership from women in various sectors advancing the cause, in line with SDG 16: Peace, Justice and Strong Institutions and SDG 5: Gender Equality.

• Legislators like Congresswoman Eleanor Holmes Norton have introduced bills to eliminate gender discrimination in hiring practices, such as prohibiting requests for previous salary information.
• Trailblazers such as Mayor Alyia Gaskins, the first African-American woman to lead the City of Alexandria, and Judge Kimberly C. McBride, appointed to the Baltimore City Circuit Court in 2024, exemplify women’s leadership.

Conclusion and Acknowledgments

The ongoing fight for equal pay and economic empowerment of women is crucial for achieving sustainable development goals. Recognition is due to all women leading change and those supporting them, including family members, community leaders, and allies.

The AFRO honors the contributions of women who have advanced gender equality and economic justice, reinforcing the global commitment to the Sustainable Development Goals.

1. Sustainable Development Goals (SDGs) Addressed or Connected

1. SDG 5: Gender Equality
   • The article focuses on closing the gender pay gap, women’s economic power, and representation in leadership roles, which are core aspects of SDG 5.
2. SDG 8: Decent Work and Economic Growth
   • Issues related to fair wages, labor market participation, and economic contributions of women relate to SDG 8.
3. SDG 3: Good Health and Well-being
   • The article mentions the correlation between financial wellness and physical and mental health, linking economic factors to health outcomes.
4. SDG 10: Reduced Inequalities
   • The focus on wage disparities, especially for Black women, and economic inequality connects to SDG 10.

2. Specific Targets Under Those SDGs

1. SDG 5: Gender Equality
   • Target 5.1: End all forms of discrimination against all women and girls everywhere.
   • Target 5.5: Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making.
   • Target 5.A: Undertake reforms to give women equal rights to economic resources, including access to ownership and control over land and other forms of property, financial services, inheritance, and natural resources.
2. SDG 8: Decent Work and Economic Growth
   • Target 8.5: Achieve full and productive employment and decent work for all women and men, including young people and persons with disabilities, and equal pay for work of equal value.
   • Target 8.8: Protect labor rights and promote safe and secure working environments for all workers.
3. SDG 3: Good Health and Well-being
   • Target 3.4: Reduce by one third premature mortality from non-communicable diseases through prevention and treatment and promote mental health and well-being.
4. SDG 10: Reduced Inequalities
   • Target 10.3: Ensure equal opportunity and reduce inequalities of outcome, including by eliminating discriminatory laws, policies and practices.

3. Indicators Mentioned or Implied to Measure Progress

1. Gender Pay Gap Indicators
   • Median hourly earnings of women compared to men (e.g., women earning 85% of what men earn).
   • Wage gap by age group (e.g., women 25 to 34 earning 95 cents to every dollar earned by men).
   • Equal Pay Day as a symbolic indicator of the wage gap duration.
2. Labor Market Participation Rates
   • Employment rates of women ages 25 to 54 (e.g., 75.3% employment rate in 2023).
3. Economic Influence and Spending Power
   • Women’s control over worldwide spending (e.g., $31.8 trillion in 2024, projected 75% of discretionary spending).
   • Percentage influence of women on consumer spending (70-80%).
4. Health and Financial Wellness Correlation
   • Indicators linking financial stress (debt-income ratio) with physical and mental health outcomes.

4. SDGs, Targets and Indicators Table

Source: afro.com