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Women in Finance: Leading the Charge in Canada

Articles, Financial Wellness

Women in finance are not only breaking barriers, but driving innovation and growth within the industry. To truly honour these contributions during Women’s Month/Day, it’s important to reflect on both the historical landscape and the current state of the industry, celebrating past achievements as well as recent progress and statistics.

The Current Landscape

Women have made substantial strides in the financial sector, yet there is still room for improvement. According to Statistics Canada, women held 26.7% of board seats in the finance and insurance industry in 2020[1]. This representation is higher than in many other sectors, reflecting the industry’s commitment to gender diversity.

Leadership and Representation

Despite the progress, women are still underrepresented in senior leadership roles. In 2020, women occupied just over one-fifth (20.5%) of the seats on boards of directors across various industries[1]. However, the finance and insurance sectors stand out with a higher percentage of women in leadership positions, showcasing industry efforts to promote gender equality.

Interestingly, women in middle and senior management positions in Canada held 42.7% of middle management and 30.8% of senior management roles as of 2021[2]. This indicates a positive trend towards increased representation in leadership, although there is still a significant gap to bridge.

Economic Contributions

Women are vital contributors to the Canadian economy. In November 2022, the participation rate of core-aged women (aged 25 to 54) in the labor market reached a record high of 85.1%, with an employment rate of 81.6%[3]. These figures underscore the growing presence and influence of women in the workforce, including the financial sector.

Women-owned businesses are also making a significant impact. In 2018, women were majority owners of 272,000 out of 1.3 million private enterprises in Canada[3], highlighting the entrepreneurial spirit and economic contributions of women in the business world.

Challenges and Opportunities

While women have made significant progress, they still face challenges, particularly in accessing financing for entrepreneurial ventures. A study by Innovation, Science and Economic Development Canada found that women-owned small and medium-sized enterprises (SMEs) are more likely to be discouraged borrowers compared to their male counterparts. Despite this, women-owned SMEs receive higher proportions of debt financing requested, indicating a positive trend towards financial inclusion.

Additionally, the gender wage gap persists in the financial sector. In 2022, Canadian women earned 89 cents for every dollar earned by men[4]. This gap highlights the need for continued efforts to achieve pay equity and ensure fair compensation for women in finance.


The Path Forward

To further support women in finance, companies must continue to foster inclusive environments, provide mentorship opportunities, and implement policies that promote work-life balance. By doing so, the financial sector can harness the full potential of its diverse workforce, driving innovation and growth.

Conclusion

Women in finance are making remarkable strides, contributing significantly to the industry’s success and the broader economy. As we celebrate International Women’s Day, let’s acknowledge their achievements and continue to support their journey towards equality and leadership in the financial sector.