The hidden inequities in frontline pay across industries

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By  Ellie Smith, PhD ,  Lyangela Gutierrez, PhD ,  Tara Van Bommel, PhD  &  Joy Ohm

20 min read

| Published on
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Executive summary

Each year, International Equal Pay Day serves as a stark reminder that pay equity remains an aspiration, not a reality. While the gender pay gap is often discussed in aggregate, our latest data — from 8,990 employees in Canada, the United Kingdom, and the United States and broken down across seven industries1 — reveal that the story is far more nuanced, and extensively shaped by gender and industry.

In this analysis, we identify how many women and men earn above or below £/$/CAN 20/hour and £/$/CAN 40,000/year in the construction, finance and insurance, hospitality, manufacturing, retail, transportation and storage, and wholesale industries. From these results, we can better understand how pay gaps play out and suggest strategies for addressing them. What we find is that in all industries, even the female-dominated ones, women are not advancing to higher pay in the proportionate numbers, indicating structural barriers that must be dismantled industry by industry.

How to cite: Smith, E., Gutierrez, L., Van Bommel, T., & Ohm, J. (2025). The hidden inequities in frontline pay across industries. Catalyst.

Cross-industry patterns: Uncovering structural barriers

Low pay is a shared challenge across the frontline workforce, pointing to broader structural issues around job quality and economic security in each sector. But a clear pattern emerges when comparing pay across industries: in every sector, women are underrepresented in higher-paid roles compared to the proportion of lower-paid roles that they occupy.

Nevertheless, inequities are not just about gender — they intersect with specific roles and industry structures. For example, industry norms define whether frontline employees are paid hourly or via an annual salary.2

  • Labor-intensive sectors such as retail, hospitality, and construction consistently show that women are concentrated in lower-paid, hourly roles, with limited access to benefits or career progression.3 In these sectors, men often occupy a disproportionate share of higher-paid positions, though even they face barriers to moving beyond the mid-tier pay bands.
  • By contrast, technical and capital-intensive industries — such as finance and insurance — offer more salaried roles with greater financial stability and advancement potential. Again, however, access is uneven: women are disproportionately excluded from higher-paying positions.
  • In some male-dominated sectors such as manufacturing, construction, and transportation and storage, men hold more of the lowest-paid frontline roles, which can make women appear to earn more on average.

Although these differences vary in magnitude and significance, altogether they highlight how structural and occupational dynamics, such as the distribution of hourly versus annual wages and types of frontline roles, shape pay patterns across industries.

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Industry snapshots

Construction

Construction, one of the most male-dominated sectors, shows entrenched barriers to equity. Women remain clustered in lower-wage roles; 19.5% of frontline construction employees earning above £/$/CAN 20 an hour are women, while 78% are men.4 This is also the case when considering salaried roles: women occupy just a quarter of roles that earn more than £/$/CAN 40,000 a year versus men’s nearly three-quarters.5 The data point to a need for structural reform — not just in hiring, but in how roles are designed and supported for long-term career progression.

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Finance and insurance

Finance shows signs of progress on gender equity, with women slightly ahead of men in higher-paid roles, though still not at the same proportion of lower-paid roles they occupy. In this sector, women hold 57% of roles earning above £/$/CAN 20 an hour while men occupy 41%,6 and women fill 53% of roles earning above £/$/CAN 40,000 a year while men hold 45.5%.7 Representation, however, is uneven across countries: in the UK, women hold 48% of finance and insurance roles, in the US they hold 70%, and in Canada they hold 63%.8

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Hospitality

Despite high participation, women in hospitality face significant barriers to upward mobility. The sector’s reliance on hourly pay compounds instability. Women account for just over half of the hospitality frontline workforce across Canada (52%), the UK (53%), and the US (56%).9 Despite this, they remain more concentrated in lower-wage roles: in roles earning under £/$/CAN 20 an hour, nearly three-quarters are held by women, while men hold one quarter.10 At the same time, men are more likely to reach higher annual earnings, holding two-thirds of roles earning above £/$/CAN 40,000 a year.11 This highlights how even with similar overall representation, men and women often experience very different pay outcomes within the sector.

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Manufacturing

Manufacturing is often described as a male-dominated industry,12 reflecting occupational segregation, with technical roles still less accessible to women on the front line.13 However, the data suggest relatively small gender differences in pay distribution at lower levels,14 though disparities remain at higher pay levels, where 63% of roles earning above £/$/CAN 40,000 a year are held by men and just 36% are held by women.15 While not all of these differences are statistically significant, they highlight the overall distribution of pay that affects frontline employees in manufacturing, regardless of gender.

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Retail

Retail is a sector with a proportionately high representation of women,16 yet women are disproportionately clustered in lower-paid roles.17 The path to higher earnings remains narrow and uneven. Despite their prevalence in the workforce, women are less likely to access the financial stability and benefits that come with salaried, higher-paying roles.18

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Transportation and storage

The transportation and storage industry shows extreme disparities for women.19 Representation gaps are stark — in Canada, 82% of employees are men; in the UK, 83% are men; and in the US, 80% are men20 — and they are compounded by pay gaps. The data suggest that systemic barriers are deeply embedded in the structure of the industry, limiting women’s access to higher-paying roles.21

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Wholesale

In wholesale, 61% of employees are paid hourly, and more women (59%) are in hourly jobs than men (39%).22 Pay patterns reflect this imbalance: 61% of employees earning under £/$/CAN 20 an hour are women and 35.5% are men,23 while 57% of those earning under £/$/CAN 40,000 annually are women and 41% are men. Men, by contrast, are more concentrated in higher-paying roles, holding 62% of jobs earning above £/$/CAN 40,000 a year compared to women’s 37%.24 While these differences are subtle, the pattern is consistent with previous findings showing that women tend to occupy lower-paid roles.

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Take action

Women are disproportionately concentrated in hourly, lower-paid, and less secure roles25 — especially in labor-intensive sectors like retail and hospitality. In contrast, salaried roles in technical or capital-intensive industries (such as finance and insurance) offer greater financial stability and career mobility, but are less accessible to some individuals.

To shift the dial on pay inequity, consider:

  1. Auditing and/or redesigning frontline roles for equity
    • Convert high-turnover hourly roles into hybrid or salaried positions where feasible.
    • Introduce predictable scheduling, minimum hours guarantees, and benefits eligibility for part-time and hourly staff.
    • Ensure job descriptions and performance criteria do not inadvertently exclude intersections of an employee’s identity, such as whether they are a working parent (e.g., penalizing flexible hours or career breaks).
  2. Create structured career pathways from hourly to salaried roles
    • Implement transparent promotion criteria and internal mobility programs.26
    • Offer skills training, mentorship, and cross-functional exposure to help hourly employees transition into salaried or leadership roles.
    • Track progression by gender to identify and address bottlenecks.
  3. Make pay equity a leadership key performance indicator (KPI)
    • Incorporate pay equity progress into performance reviews and bonus structures for leaders, focusing on closing unjustified pay gaps within their teams or functions.
    • Report progress publicly and tie outcomes to executive accountability.
    • Engage employee resource groups (ERGs) and frontline staff in co-designing solutions.

Endnotes

  1. We surveyed 8,990 frontline employees and managers in Canada (n = 2,028, 23%), the United Kingdom (n = 2,932, 33%), and the United States (n = 4,028, 45%) in a range of industries including construction (n = 1,176, 13%), finance and insurance (n = 1,200, 13%), hospitality (n = 1,230, 14%), manufacturing (n = 1,367, 15%), retail (n = 2,584, 29%), transportation and storage (n = 261, 3%), and wholesale (n = 368, 4%). Our sample was half cisgender women (50%, n = 4,469), with just less than half cisgender men (49%, n = 4,362) and some representation of other genders (<2%, n = 144). More than half of the respondents were White (63%, n = 5,631) and our sample included representation from other racial and ethnic identities as well: Asian (9%, n = 789); Black (15%, n = 1,310); Latine (4%, n = 324); Indigenous (1%, n =90), MENA (<1%, n =62), multiracial (7.5%, n = 669); Arab, Iranian, Turkish, Romani, or a combination of these (1%, n = 17); and others who self-described their race (<1%, n = 47).  Most respondents identified as heterosexual/straight (85%, n = 7,639), and our sample represented other sexual identities as well (e.g., asexual, bisexual, gay, lesbian, pansexual, or queer employees; 13%, n = 1,137). The average participant age was 40 years old, and ages ranged from 18 to 75. Almost half of the respondents were Millennials (44%, n = 3,922), 20% were Gen Z (n = 1,798), around a quarter were Gen X (26.5%, n = 2,378), and the rest were Baby Boomers (10%, n = 892). Roughly a third of the respondents were in non-managerial roles with no supervisory responsibilities (36%, n = 3,190), a quarter were in non-managerial roles with supervisory responsibilities (27%, n = 2,448), and over a third were in first line or frontline managerial roles (37%, n = 3,352). Note that participants could skip demographic questions, so totals may not equal 100% or total sample size.
  2. Survey respondents were asked whether they were paid “hourly” or by “annual salary.” This was used as their “pay type.” A chi-square test of independence revealed a statistically significant overall association between industry and pay type, χ²(9) = 684.90, p < .001. Construction frontline employees were more likely to be hourly (61%, z = -1.7) than salaried (39%, z = 2.3). Conversely, finance and insurance frontline employees were significantly more likely to be salaried (59%, z = 13.9) and less likely to be paid hourly (41%, z = -10.2). Hospitality frontline employees were significantly more likely to be paid hourly (76%, z = 4.8) and less likely to be salaried (24%, z = -6.6). Manufacturing frontline employees were also more likely to be paid hourly (58%, z = -3.1) than salaried (42%, z = 4.3). Frontline employees in retail were significantly more likely to be paid hourly than expected (78%, z = 8.1), while salaried representation in retail was significantly lower than expected (22%, z = -11.0). Additional significant deviations included lower-than-expected frequency of hourly employees in transportation and storage (43%, z = -4.4), which showed elevated salaried representation (57%, z = 6.0). The wholesale sector showed no significant deviations from expected counts, with residuals all within ±2.
  3. Smith, E. & Van Bommel, T. (2025). Four drivers of frontline employee satisfaction and business results. Catalyst.
  4. In construction, 61% of employees are paid hourly, and more men (76%) are in hourly jobs than women (22%). Respondents were asked their hourly wage, and their responses were dichotomized into “below £/$/CAN 20/hour” and “above £/$/CAN 20/hour.” A chi-square test of independence among employees working in the construction industry revealed a statistically significant overall association between gender and whether they earned above or below £/$/CAN 20/hour, χ²(3) = 7.72, p = .05. Seventy one percent of construction employees earning below £/$/CAN 20 an hour were men (z = 8.9), while 28% were women (z = -6.5). Furthermore, 78% of construction employees who earned more than £/$/CAN 20 an hour were men (z = 6.2) and 19.5% were women (z = -7.4). Respondents identifying as another gender showed no significant deviations from expected counts, with residuals all within ±2.
  5. Respondents were asked their annual salary, and responses were dichotomized into “below £/$/CAN 40,000/year” and “above £/$/CAN 40,000/year.” A chi-square test of independence among employees working in the construction industry revealed a statistically significant overall association between gender and whether they earned above or below £/$/CAN 40,000 per year, χ²(2) = 15.51, p < .001. Fifty-six percent of construction employees earning below £/$/CAN 40,000/year were men (z = 2.0), while 42% were women (z = -2.0). In the higher pay band, 25% of construction workers who earned more than £/$/CAN 40,000 annually were women (z = -4.0), and 72% were men (z = 2.9). Respondents identifying as another gender showed no significant deviations from expected counts, with residuals all within ±2.
  6. A chi-square test of independence among employees working in finance and insurance revealed a statistically significant overall association between gender and whether they earned above or below £/$/CAN 20/hour, χ²(3) = 8.79, p = .03. Seventy percent of employees earning less than £/$/CAN 20/hour were women (z = 1.4), while 28% were men (z = -1.8). In contrast to other industries, 57% of employees in this sector earning more than £/$/CAN 20/hour were women (z = 4.4) and 41% were men (z = -3.9). Respondents identifying as another gender showed no significant deviations from expected counts, with residuals all within ±2.
  7. A chi-square test of independence among employees working in finance and insurance revealed a statistically significant overall association between gender and whether they earned above or below £/$/CAN 40,000 per year, χ²(3) = 9.73, p = .02. Sixty five percent of employees earning less than £/$/CAN 40,000/year were women (z = 2.3) and 33% were men (z = -2.7). Furthermore, 53% of finance and insurance employees who earned more than £/$/CAN 40,000 annually were women (z = 4.8), while 45.5% were men (z = -3.9). Respondents identifying as another gender showed no significant deviations from expected counts, with residuals all within ±2.
  8. Catalyst Labor Economist review of Statistics Canada 2021 & 2023 reveals 63% of frontline employees in the finance and insurance sector in Canada are women. In addition, Catalyst Labor Economist review of the Bureau of Labor Statistics 2023 & 2024 shows that 70% of frontline employees in the finance and insurance sector in the United States are women. Finally, Catalyst Labor Economist review of the Office of National Statistics 2021 & 2023 reveals that 48% of frontline employees in the finance and insurance sector in the United Kingdom are women. All data were collected and analyzed in June 2024.
  9. Catalyst Labor Economist review of Statistics Canada 2021 & 2023 reveals 52% of frontline employees in the hospitality sector in Canada are women. In addition, Catalyst Labor Economist review of the Bureau of Labor Statistics 2023 & 2024 shows that 56% of frontline employees in the hospitality sector in the United States are women. Finally, Catalyst Labor Economist review of the Office of National Statistics 2021 & 2023 reveals that 53% of frontline employees in the hospitality sector in the United Kingdom are women. All data were collected and analyzed in June 2024.
  10. A chi-square test of independence among employees working in the hospitality industry revealed a statistically significant overall association between gender and whether they earned above or below £/$/CAN 20/hour, χ²(3) = 16.45, p < .001. Within the hospitality sector, 72% of employees earning below £/$/CAN 20 an hour were women (z = 3.5), while 25% were men (z = -4.7). Furthermore, 60% of hospitality frontline employees earning above £/$/CAN 20 per hour were women (z = 4.6), and 39% were men (z = -3.9). Respondents identifying as another gender showed no significant deviations from expected counts, with residuals all within ±2.
  11. A chi-square test of independence among employees working in the hospitality industry revealed a statistically significant overall association between gender and whether they earned above or below £/$/CAN 40,000 per year, χ²(3) = 33.48, p < .001. Within the hospitality sector, 67.5% of employees earning below £/$/CAN 40,000 annually were women (z = 2.0), while 32.5% were men (z = -2.1). Additionally, 33% of hospitality frontline employees earning more than £/$/CAN 40,000 annually were women (z = -1.3) and 67% were men (z = 1.3). Respondents identifying as another gender showed no significant deviations from expected counts, with residuals all within ±2.
  12. Catalyst Labor Economist review of Statistics Canada 2021 & 2023 reveals 75% of frontline employees in the manufacturing sector in Canada are men. In addition, Catalyst Labor Economist review of the Bureau of Labor Statistics 2023 & 2024 shows that 74% of frontline employees in the manufacturing sector in the United States are men. Finally, Catalyst Labor Economist review of the Office of National Statistics 2021 & 2023 reveals that 83% of frontline employees in the manufacturing sector in the United Kingdom are men. All data were collected and analyzed in June 2024.
  13. Women in manufacturing: The looming skills gap. (2024, September 25). The Manufacturing Institute; Baker, E. (2025, May 12). Women in manufacturing: A fresh look at an enduring issue. The Manufacturer.
  14. A chi-square test of independence among employees working in the manufacturing industry revealed a statistically non-significant association between gender, and whether they earned above or below £/$/CAN 20/hour, χ²(3) = 5.87, p = .12. In the manufacturing sector, 56% of employees who earned below £/$/CAN 20 an hour were men (z = 5.7) while 42% were women (z = -4.3). On the other hand, 63% of frontline employees earning more than £/$/CAN 20/hour were men (z = 1.7) and 36% were women (z = -1.7). However, residuals are <2, and as such this gender difference is not statistically meaningful.
  15. A chi-square test of independence among employees working in the manufacturing industry revealed a statistically non-significant association between gender and whether they earned above or below £/$/CAN 40,000 per year, χ²(3) = 5.57, p = .13. In manufacturing, 53% of employees earning below £/$/CAN 40,000 a year were men (z = 1.6) and 46% were women (z = -1.4). Of manufacturing frontline employees who earned above £/$/CAN 40,000 annually, 63% were men (z = 0.9) while 36% were women (z = -1.1). Although, as the residuals were <2, these differences are not statistically meaningful.
  16. Catalyst Labor Economist review of the Office of National Statistics 2021 & 2023 highlights that approximately 61% of retail and sales assistants in the United Kingdom are women. Furthermore, Catalyst Labor Economist review of the Bureau of Labor Statistics 2023 & 2024 highlights that while retail salespersons in the United States are approximately 50% women, 70% of cashiers are women. Finally, Catalyst Labor Economist review of Statistics Canada 2021 & 2023 highlights greater parity across Canada, with women representing 47% of retail salespeople and visual merchandisers, and 45% of retail and wholesale managers. All data were collected and analyzed in June 2024.
  17. A chi-square test of independence among employees working in the retail industry revealed a statistically significant association between gender and whether they earned above or below £/$/CAN 20/hour, χ²(3) = 78.01, p < .001. In the retail sector, 69% of employees earning less than £/$/CAN 20 per hour were women (z = 3.6), while 28% were men (z = -5.0). Then, 49% of retail employees in higher pair hourly roles were women (z = 3.1) and 49% were men (z = -2.6). Respondents identifying as another gender showed no significant deviations from expected counts, with residuals all within ±2.
  18. A chi-square test of independence among employees working in the retail industry revealed a statistically significant overall association between gender and whether they earned above or below £/$/CAN 40,000 per year, χ²(3) = 8.75, p = .01. Fifty eight percent of employees who earned below £/$/CAN 40,000 a year were women (z = 0.8), while 42% were men (z = -0.7). Furthermore, 46% of frontline retail employees earning more than £/$/CAN 40,000 annually were women (z = 1.7) and 54% were men (z = -1.2). Respondents identifying as another gender showed no significant deviations from expected counts, with residuals all within ±2.
  19. A chi-square test of independence among employees working in the transportation and storage industry revealed a statistically significant association between gender and whether they earned above or below £/$/CAN 20/hour, χ²(3) = 8.34, p = .02. In the transportation and storage sector, 25.5% of employees who earned below £/$/CAN 20 per hour were women (z = -4.4) and 74.5% were men (z = 6.2). Meanwhile, just 5% of employees earning more than £/$/CAN 20 per hour were women (z = -2.4), while 89.5% were men (z = 1.9). Respondents identifying as another gender showed no significant deviations from expected counts, with residuals all within ±2.
  20. Catalyst Labor Economist review of the Office of National Statistics 2021 & 2023 highlights that approximately 83% of transportation and storage frontline employees in the United Kingdom are men. Furthermore, Catalyst Labor Economist review of the Bureau of Labor Statistics 2023 & 2024 highlights that 80% of transportation and storage frontline employees in the United States are men. Finally, Catalyst Labor Economist review of Statistics Canada 2021 & 2023 highlights 82% of transportation and storage frontline employees in Canada are men. All data were collected and analyzed in June 2024.
  21. A chi-square test of independence among employees working in the transportation and storage industry revealed a statistically non-significant association between gender and whether they earned above or below £/$/CAN 40,000 per year, χ²(3) = 3.49, p = .06. In the transportation and storage sector, 38% of employees who earned less than £/$/CAN 40,000 a year were women (z = -2.1), while 62% were men (z = 2.4). Furthermore, 23% of employees earning more than £/$/CAN 40,000 annually in the transportation and storage trade were women (z = -1.9) and 77% were men (z = 1.7). Respondents identifying as another gender showed no significant deviations from expected counts, with residuals all within ±2.
  22. A chi-square test of independence among employees working in the wholesale sector revealed a statistically significant association between gender and pay type, χ²(3) =7.90, p = .05. In wholesale, 59% of employees who were paid hourly were women (z = 1.1), while 39% were men (z = -1.3). Furthermore, 46% of employees who were paid by annual salary were women (z = -1.3), and 53% were men (z = 1.6). Although, as the residuals were <2, these differences are not statistically meaningful.
  23. A chi-square test of independence among employees working In the wholesale sector, 61% of employees earning less than £/$/CAN 20 per hour were women (z = 0.3), while 35.5% were men (z = -0.5). Then, 56% of wholesale employees in higher paid hourly roles were women (z = -0.4) and 42% were men (z = 0.6). Although, as the residuals were <2, these differences are not statistically meaningful.
  24. A chi-square test of independence among employees working in the wholesale industry revealed a statistically significant overall association between gender and whether they earned above or below £/$/CAN 40,000 per year, χ²(3) = 8.27, p = .04. In the wholesale sector, 57% of employees who earned less than £/$/CAN 40,000 a year were women (z = 1.4), while 41% were men (z = -1.3). Furthermore, 37% of employees earning more than £/$/CAN 40,000 annually in the wholesale trade were women (z = -1.2) and 62% were men (z = 1.1). Although, as the residuals were <2, these differences are not statistically meaningful.
  25. Smith, E., & Van Bommel, T. (2025). Four drivers of frontline employee satisfaction and business results: United States spotlight. Catalyst; Smith, E., & Van Bommel, T. (2025). Four drivers of frontline employee satisfaction and business results: United Kingdom spotlight. Catalyst; Smith, E., & Van Bommel, T. (2025). Four drivers of frontline employee satisfaction and business results: Canada spotlight. Catalyst.
  26. Sattari, N., Van Bommel., T., & Smith, E. (2025). Retain women in frontline jobs with these strategies. Catalyst.