A recent study has unveiled a concerning trend in the freelance landscape in Canada, revealing that women earn substantially less than their male counterparts, despite having the autonomy to set their own rates. Conducted by the international payments company Remitly, the research highlights a 16.2 per cent wage gap, with female freelancers averaging $47.78 per hour compared to $57 for men. This discrepancy is particularly alarming when set against the broader gender wage gap of 12 per cent across all Canadian workers, as reported by Statistics Canada.
A Global Perspective on the Wage Gap
Within the context of 54 countries examined in Remitly’s study, Canada ranks 36th in terms of the gender wage gap among freelancers, placing it between the United States at 16.9 per cent and the United Kingdom at 15.4 per cent. Thailand emerges as the most significant outlier, with a staggering 51.7 per cent disparity in earnings between male and female freelancers, followed by Hungary at 45 per cent and Bangladesh at 42 per cent. On a more positive note, Croatia exhibits almost no wage gap among freelancers, while South Africa and Vietnam report a modest difference of roughly 4 per cent.
Interestingly, the global average wage gap stands at 19 per cent, indicating that the issue is not confined to Canada. While the data does not pinpoint a clear cause for the persistent wage gap among freelancers, it suggests that many may be influenced by previous employment experiences, thus affecting their pricing strategies. Ankur Tiwari, Vice President and General Manager of Remitly Business, shares insights on this phenomenon, stating, “Freelancers may be carrying over salary expectations from when they were employed.”
The Most Affected Professions
The study identifies the largest freelance gender wage gap in Canada as occurring within the regulatory compliance sector, where women earn nearly 57 per cent less than their male peers. Tiwari notes that the most pronounced gaps occur in the highest-paying, most specialised freelance roles, such as AI and data engineers, as well as compliance professionals. He further explains that the concentration of technical roles in an economy may contribute to the wage discrepancies observed across different countries.
This trend raises significant concerns, particularly as these technical professions are viewed as critical to Canada’s economic future. “These are the jobs Canada is betting its economic future on – and we don’t know the cause of it – but from our data, we just know that technical roles are seeing the largest gap,” Tiwari asserts.
Systemic Issues and Societal Influences
Additional research from workforce intelligence firm Revelio Labs corroborates the findings, demonstrating that women freelancers on platforms like Upwork list the same services as their male counterparts for approximately 21 per cent less. Loujaina Abdelwahed, head of economic research at Revelio Labs, suggests that societal factors may drive this trend, noting, “Women know that their work is valued less and they internalise it.”
Further analysis reveals that while Canadian men and women are nearly equally likely to receive a perfect five-star rating from clients, men typically charge nearly 19 per cent more for identical services. Although both genders tend to increase their fees with experience, men command a higher premium, causing the earnings gap to widen as freelancers build their portfolios. It is crucial to note that the Revelio study focuses on the rates charged rather than actual earnings, leaving open the possibility that women may be working longer hours at lower rates.
The data also indicates that the freelance platform has a global female skew, with approximately 63 per cent of accounts held by women, yet the gender distribution in Canada is nearly equal.
Closing the Gap: Empowering Freelancers
Both Abdelwahed and Tiwari advocate for greater transparency in pricing among freelancers, believing that awareness can empower all genders to charge more fairly for their services. “It really helps to just look at the market first and see what other people charge,” Abdelwahed advises. Tiwari adds, “I would also suggest finding a community of freelancers so you can talk to each other about rates, because this is mostly an information gap problem.”
Why it Matters
The findings of this study highlight a persistent and troubling issue within the Canadian freelance economy. As more individuals turn to independent contracting, addressing the gender wage gap becomes imperative not only for equity but also for the overall health of the economy. Empowering women freelancers to advocate for fair compensation could lead to significant shifts in industry standards, ultimately fostering a more balanced and equitable workforce. As the landscape continues to evolve, it is crucial that all freelancers are equipped with the knowledge and confidence to ensure they are compensated fairly for their expertise.
