Racialized Women in P.E.I. Face Largest Pay Gap
Racialized women in Prince Edward Island earn just 59 cents for every dollar earned by non-racialized men, according to a new report from the P.E.I. Coalition for Pay Equity. This gap is significantly wider than the overall gender pay gap in the province, where women earn 82 cents on the dollar compared to men.
The report, titled "Intersecting Inequalities: The Pay Divide for Racialized Women in P.E.I.," analyzed 2021 census data and found that racialized women earned a median annual income of $32,400, compared to $54,800 for non-racialized men. The gap persists across all education levels and age groups.
Occupational Segregation a Key Factor
One of the main drivers is occupational segregation, with racialized women concentrated in lower-paying sectors such as retail, hospitality, and care work. "Racialized women are overrepresented in precarious, part-time, and low-wage jobs," said Marie Burge, executive director of the coalition. "They face barriers to entering higher-paying fields due to discrimination, lack of recognition of foreign credentials, and limited access to networks."
The report also highlights that even within the same occupations, racialized women earn less than their white counterparts. For example, in health care and social assistance, racialized women earned 15% less than non-racialized women and 30% less than non-racialized men.
Systemic Discrimination and Lack of Transparency
Systemic discrimination in hiring, promotion, and pay-setting practices contributes to the divide. The report calls for stronger pay equity legislation that explicitly addresses race and gender intersections. "Current laws focus on gender alone, but they miss the compounded disadvantage faced by racialized women," Burge added.
The coalition also recommends mandatory pay transparency reporting for employers, which would require them to disclose wage gaps by gender and race. Only one in five P.E.I. employers currently conducts pay equity audits.
Impact on Economic Security
The pay gap has long-term consequences for racialized women's economic security, retirement savings, and ability to weather financial shocks. The report notes that racialized women in P.E.I. are more likely to live in poverty and have lower rates of homeownership. "This is not just a fairness issue—it's an economic issue," Burge said. "Closing the gap would boost household incomes and reduce reliance on social programs."
The coalition is urging the provincial government to amend the Pay Equity Act to include race as a protected ground and to fund a dedicated office to enforce compliance. The report comes as P.E.I. prepares to update its 10-year Women's Economic Strategy.
