‍

The UK has climbed back to being the highest-ranking G7 country in PwC’s 2026 Women in Work Index. It now sits 17th out of 33 OECD countries. But the shift is mostly down to other countries falling back, rather than the UK making significant gains. And some of the underlying numbers are moving in the wrong direction.

Early disadvantages a concern for women:

‍

Female unemployment has risen from 3.5% to 4.2%. Among young women, it has increased from 9.5% to 11.8%.

At the same time, almost 946,000 16 to 24 year olds in the UK are not in education, employment or training. That’s nearly one in eight young people.

For young women who leave school without strong GCSE results, the picture is tougher. Around 24.5% of this group are not in work, education or training. If a young woman leaves school with weaker GCSE grades and is also dealing with a health condition, nearly half, 48%, fall into that category.

‍

Boys who leave school with similar grades are more likely to move into male-dominated sectors like construction, where there are clearer routes into paid work. Girls often don’t have the same straightforward pathways. Add rising mental health pressures into the mix, and it becomes harder to get back on track once you’ve stepped off it.

Impact on the economy:

‍

PwC’s modelling puts a number on what this means for the wider economy. If the UK reduced the number of young women not in work or education to match Germany, it could add £5 billion to GDP. Matching the Netherlands could add up to £11 billion. Even returning to the UK’s own 2021 level would be worth an estimated £3 billion.

‍

Carol Stubbings, UK and EMEA Managing Partner at PwC, said:

Rising female unemployment, especially among young women, points to underlying weaknesses in our labour market at a time when AI is reshaping the economy and the skills needed.

The countries that succeed will be those that invest in strong foundations in education and continued skills development. Employers have a crucial role in creating clear pathways into work and helping their people continue to learn and adapt.

‍

Alia Qamar, Senior Economist at PwC UK, added:

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.

‍

The UK being top of the G7 makes for a neat headline, but if more young women are struggling to find work at the very start of their careers, that ranking feels more fragile than triumphant.