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More than just a desk: Can co-working spaces make labour markets more inclusive?

This article was originally published on the OECD COGITO blog

Since the pandemic, co-working spaces have exploded in popularity. The number of people working in these spaces worldwide is predicted to double in 2024, relative to 2021, reaching 5 million users. They offer an accessible, flexible mode of working that appeals to professionals, leading policy makers to look for ways to harness their potential to drive growth. But can they also have a role in making growth more inclusive? 

More than just a desk

Co-working spaces (CWs) come in various forms. The physical spaces range from adaptable layouts in industrial settings, including converted warehouses and historic buildings, to specialised studios tailored for comfort. They can be for-profit companies and non-profits, and many are supported by local governments or regional development agencies.  

Public support can be directed to the owners of a co-working space. For instance, local governments have provided financial support to run a co-working space or incentives for the creation of co-working spaces in unused public buildings. In other cases, the use of co-working spaces can be encouraged, for instance through the provision of vouchers to freelancers, self-employed workers and businesses.  

Co-working spaces offer cost-effective solutions for individual users through shared infrastructure. Moreover, they foster a diverse in-house community for start-ups, entrepreneurs, freelancers and companies. Firms of all sizes increasingly use co-working spaces to allow their employees to work away from headquarters, resulting in a trend where office workers now live further from their jobs than they did before the pandemic. 

As a hotbed of new activities, from fostering entrepreneurship to networking among workers from different companies, co-working spaces may provide a boost to local economies. For instance, the Ludgate Hub in County Cork, Ireland, can point having created over 300 new jobs in the region. However, there are more ways in which co-working spaces can benefit their communities. 

How co-working spaces can make local labour markets a little more inclusive

Many co-working spacess have become vibrant community hubs, closely integrated with their local environments. A 2019 study on co-working spaces in Italy reported that three-quarters of the surveyed coworkers noted a beneficial impact on the urban and local context. Due to their connections with local communities, evidence is also mounting that co-working spaces can support those facing challenges in the labour market in at least three ways. 

First, by providing a convenient solution for workers with family or caring responsibilities. A national panel survey of 2 500 working parents conducted by Harvard Business Review revealed that “nearly 20% of working parents had to leave work or reduce their work hours solely due to a lack of childcare. Only 30% of all working parents had any form of back-up childcare, and there were significant disparities between low and high-income households”. Some co-working spaces, like The Tribe in Devon, UK, tailor their support and community building to focus on the needs of women – especially working mothers and carers. Others, like Coworking Toddler in Hannover and Berlin, Germany, take a step further by providing workplaces that integrate professional settings with childcare, enabling parents to concentrate on their work while their children are cared for in an adjacent daycare facility. 

Second, by providing a space for more experienced workers to share their knowledge with individuals Not in Education, Employment or Training (NEETs) and other vulnerable groups. Co-working spaces have been actively creating opportunities for young artisans to work alongside experienced professionals, some retired, who are eager to pass on their manufacturing expertise. For instance, Fablab in Verona, Italy, and Center-Rog in Ljubljana, Slovenia, provide an entry point for people of all age groups to learn new skills, with trainings offered ranging from 3D-printing to food preparation.  

Third, by supporting the attraction and retention of high-skilled workers. Co-working spaces can contribute to the retention of local workers by providing them an option to combine remote work with occasional office attendance. This is particularly critical in rural areas, as it allows such places to retain and attract high-skilled workers, for instance, in the Ems-Achse, a group of mostly rural districts in north-west Germany. However, co-working spaces also provide these high-skilled remote workers with a vital connection to the local community, through which they can share knowledge and inspire others.  

Supporting innovative initiatives

In short, co-working spaces can provide communities with valuable new hubs that can connect workers, helping share knowledge, skills, and opportunities. This can help regions address pressing labour shortages and skills gaps while supporting vulnerable workers into new opportunities. Many local governments and employment agencies are therefore finding creative ways to support co-working spaces as part of a broader strategy to build thriving communities.  

“In my experience, my coworking community helps more with mental health balance for my coworkers – as most come to my space for the social links that are created here. The networking aspect which stems from this means that most of my coworkers have used services offered by other coworkers (coaching, communications services, building renovation …) or collaborated with other coworkers on projects (an architect with an interior designer, two coaches on a new service offering…).” 

Antonia Mahon, Founder of The Hub in Sèvres, France 
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InterAct supports Women in Manufacturing: ‘Changing perceptions’ conference

InterAct representatives including Co-director, Professor Jillian MacBryde, were pleased to support the Women in Manufacturing initiative’s ‘Changing Perceptions’ conference on 31st October 2023.

Hosted at the state-of-the-art Manufacturing Technology Centre facility in Coventry, the event attracted industry leaders, policymakers, and aspiring professionals from across the country to share ideas and discuss the biggest challenges to female participation in manufacturing today.

The ‘Changing Perceptions’ conference was organised by the Institute for Manufacturing, University of Cambridge (IfM) and Innovate UK’s Made Smarter Innovation programme, with support from the High Value Manufacturing Catapult, InterAct and Lloyds Banking Group. It marks a major milestone in the activities put together by the Women in Manufacturing Initiative, a group dedicated to improving diversity and representation within the manufacturing sector.

Although women represent almost half of the labour force in the United Kingdom, they account for only 26% of all workers in the manufacturing sector.

Gender norms and stereotypes still segregate women and men into different occupations and economic activities. Women are also underrepresented in leadership positions, and this lack of diversity influences decision-making and firm performance.

The morning sessions of the conference sought to address some of the influencing factors behind these issues looking at: ‘Perceptions of Manufacturing: International Perspectives’, ‘How to Network Effectively’ and a panel discussion on ‘Promoting Diversity in the UK Manufacturing Sector’.

Dr Jennifer Castañeda-Navarrete (left) and Dr. Dalila Ribaudo present some of the findings of their InterAct funded research on ‘International Perceptions of Manufacturing

Throughout the afternoon, a series of workshops delved into various aspects of women’s roles in manufacturing, covering topics such as career advancement, mentorship programs, and strategies to overcome gender bias. Attendees had the opportunity to engage with seasoned professionals, share experiences, and gain insights into navigating the challenges unique to women in the manufacturing workforce.

InterAct Co-director, Professor Jillian MacBryde leads a workshop on her Future of Work ‘Perceptions of Manufacturing’ survey findings

Speaking to conference supporters Lloyds Bank about the importance of the event, organiser and Head of Industrial Technologies and Manufacturing at Innovate UK, Dr. Megan Ronayne said: “One of the main advantages of increasing diversity in manufacturing is that it raises innovation in the sector” and this can help to offset skills gaps and shortages in the workforce.

Whilst the Changing Perceptions conference made it clear that these are long-term issues, that require long-term solutions and investment to overcome, the enthusiasm and ideas generated for the Women in Manufacturing initiative was an inspirational takeaway for attendees.

If you want to learn more about how you can take practical steps to help address these challenges, you can read Dr. Castañeda-Navarrete’s report on ‘The case for a gender-transformative digitalisation’. This policy brief offers practical recommendations for businesses, industry associations, and research and government organisations to promote gender diversity and inclusion within the UK manufacturing sector.

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InterAct Blog

Empowering women in manufacturing: Unlocking the potential of gender-inclusive digitalisation

We are at a crossroads, with the opportunity either to progress towards a more equitable manufacturing landscape or to deepen existing gaps. The digitalisation of manufacturing provides a chance to transform the sector into a more inclusive and diverse one. However, if we do not take intentional and proactive steps, this digital transformation could instead reinforce prevailing norms and deepen gender inequalities.

In order to inspire and inform initiatives towards a more inclusive and diverse manufacturing sector, Cambridge Industrial Innovation Policy developed a policy brief to raise awareness about the challenges that women face when participating in manufacturing, while making the case for a gender-inclusive digitalisation. The policy brief was a key output of the InterAct-funded project Women in digital manufacturing and was conducted in collaboration with the Women in Manufacturing Initiative.

In this blog post, we will share some key takeaways from the policy brief.

What is the gender gap in UK manufacturing?

Gender norms and stereotypes segregate women and men into different occupations and economic activities. Although women represent almost half of the labour force in the UK, they account for just 26% of all workers in the manufacturing sector.  Women working in the manufacturing sector earn 17% less than their male peers.

Women from non-White backgrounds and women with disabilities are among the least represented population groups in UK manufacturing. According to 2022 data, women from non-White backgrounds account for 15% of the workforce, representing just 3% of manufacturing employees. In the same year, women with disabilities, as defined in the Equality Act 2010, represented 9% of the people in employment; however, they made up for less than 1% of the manufacturing workforce.

Representation of women in UK manufacturing is markedly lower in skilled trade occupations (9%); process, plant and machine operatives (23%); and managers and senior officials (23%). In comparison, women’s representation is larger in administrative and secretarial occupations (70%), personal services (55%), and sales and customer service (49%).

Traditional gendered division of labour persists in manufacturing industries. Men mostly dominate the automotive industry, while the pharmaceuticals, textiles, and apparel industries have a more equal representation of both genders.

Unpaid childcare and household work disproportionately affect women’s participation in manufacturing. Women in the UK spend 1.7 more time a day in unpaid childcare than men and 1.4 more time in household work.  This traditional gender-based division of unpaid work means that women face larger burdens to participate in paid work, particularly in positions with little flexibility or involving uncertain shifts and locations.

Because of this situation, women are more likely to work part-time than men. In 2022, 23% of the women working in manufacturing were working part-time, while only 5% of men were working part-time.

Challenges faced by women in the UK manufacturing sector

We invited stakeholders from the manufacturing sector to participate in an online survey to understand the challenges women face to participate in the sector. Survey participants perceive that the prevailing non-inclusive culture, which continues to favour men over women in manufacturing roles, is the primary hurdle to the participation of women in the industry. This is followed by barriers in promotion and leadership, a lack of awareness and visibility of job opportunities, a lack of skills and training support and work–life balance.

What are some of the challenges preventing equitable opportunities and rewarding careers for women in manufacturing?

Note: Number or respondents = 63.The sum of the percentages exceeds 100% because respondents could select more than one choice.

Source: Women in Manufacturing survey.

The digital transformation and gender diversity in manufacturing

The digital transformation and other recent trends have had mixed effects on gender diversity in the manufacturing landscape. Over the past two decades, the UK manufacturing sector has significantly changed the distribution of job roles within its workforce. Despite labour shortages in roles such as process, plant and machine operatives and skilled trades, which men mostly hold, these positions have seen a notable decrease in their share of manufacturing employment.

Administrative and secretarial occupations, which are mostly held by women, have also seen a decline in employment rates, and this trend is likely to continue in the coming years. In comparison, there has been a substantial expansion in the shares of professionals and associate professional and technical positions.

Changes in manufacturing occupations, 2004 and 2022 (total)

Source: Nomis. Annual Population Survey – Workplace analysis

Changes in the skills required by manufacturing businesses are creating opportunities for women to enter the industry. Skills such as data analysis, forward-thinking and innovation are becoming more relevant, and a growing number of women from different backgrounds have these skills. This positive trend is compounded by the interaction of the digital and the environmental sustainability transitions, which are making manufacturing more diverse.

From 2004 to 2022, there was an increase in gender diversity in several manufacturing jobs. These include professional roles, managers, directors and senior officials, associate professional and technical roles, and skilled trade occupations.

Changes in gender diversity IN manufacturing occupations, 2004 ̶ 2022

Source: Author, based on Nomis. Annual Population Survey – Workplace analysis. For detailed definitions of the nine occupational categories please refer to Appendix A of the policy brief..

The way forward: How can we improve gender diversity in UK manufacturing?

Drawing upon established practices to promote gender equality, 10 practical recommendations are provided in the policy brief for UK organisations to cultivate a more diverse and inclusive manufacturing sector.

Businesses, industry associations and research organisations could:

  1. Collect and analyse diversity data. According to the Make UK ED&I Survey 2021, 47% of manufacturers are not assessing the status of equality, diversity and inclusion.
  2. Promote an inclusive workplace culture through initiatives such as awareness-raising campaigns, diversity and inclusion training and networking opportunities.
  3. Address gender bias in recruitment and promotion by using inclusive language in job advertisements, promoting diverse interview panels and candidate pools, and promoting mentoring opportunities.
  4. Support work–life balance by providing flexible working arrangements, implementing return-to-work policies, promoting the uptake of paternity leave, and offering on- or near-site subsidised childcare, among other initiatives.
  5. Share and recognise examples of best practice by creating spaces for organisations to share their experiences and establishing awards to encourage outstanding practices.

Government organisations could:

  1. Follow a gender-transformative approach in government support programmes. This includes setting targets for reaching women-owned businesses through support programmes, including women’s business organisations in the design of dissemination campaigns, and conducting gender-sensitive evaluations.
  2. Support research on gender equality and gender-disaggregated data collection. We cannot address what we do not know. A critical gap exists in gender-, ethnic- and disability-disaggregated data, as well as in understanding gender differences in the adoption of digital technologies in manufacturing. Bridging this gap requires both allocating funding to expand survey samples and supporting new research.
  3. Incentivise gender equality in research and innovation teams by continuing efforts such as Innovate KTN’s guidelines for inclusive design and by including gender equality criteria in research and technology fund allocations.
  4. Adopt a lifelong learning approach in training and education programmes by creating opportunities for women to develop skills at different stages of their lives.
  5. Ensure an enabling environment for improving gender balance in caring responsibilities. This may involve cross-ministerial coordination and collaboration with industry associations to develop and enforce policies that support flexible working, paternity leave, returning to work, and child and adult social-care provision.

The policy brief provides examples of how various types of organisations are implementing initiatives in these areas. These include from a medium-sized business pioneering flexible working in manufacturing, to comprehensive equality and inclusion strategies in a multinational company, and gender-inclusive approaches in digital manufacturing support programmes.

Promoting gender equality not only upholds a fundamental human right but also serves as a catalyst for improved financial and environmental performance, making it imperative to prioritise the increased participation of women in the UK manufacturing sector. The potential economic benefits, as estimated by Make UK, underscore the vital role of gender diversity in closing skills gaps and driving economic growth, potentially adding £7 billion annually to the UK’s gross domestic product.

Finally, while the policy brief provides insights into the dynamics of gender diversity in UK manufacturing, shaped by digital transformation and other contemporary trends, there are still many unknowns that need to be addressed. For instance, we have little understanding of how digitalisation is changing manufacturing workplaces and the challenges women and men face in adapting to and benefiting from these transformations.

Despite increasing commitments to narrowing gender disparities, gender equality remains secondary in importance, particularly in industrial and technology domains. This oversight has resulted in underfunded research and analysis aimed at addressing gender gaps. To pave the way for a more inclusive, innovative, and equitable future in manufacturing, we must collectively tackle these outstanding issues.

Download the full policy brief:  

This work was supported by the UKRI Made Smarter Innovation Challenge and the Economic and Social Research Council via InterAct [Grant Reference ES/W007231/1].