Why the 23 per cent pay gap between men and women isn’t closing

The pay gap between men and women remained stubbornly at 22.8 per cent last financial year – the first time in nine years of surveys it hasn’t narrowed.

The annual Workplace Gender Equality Agency’s employer census found women earned about $26,600 less than men in 2021-22, or about 77 cents for every $1.

While average pay lifted for both – from $87,449 in 2020-21 to $90,309 for women and from $113,241 to $116,906 for men – the agency’s director, Mary Wooldridge, said it was a concern the gap between them had not shifted.

“We need to keep working on it – 22.8 per cent is way too high, it’s a massive differential between men and women,” she said.

The following graphs help explain that disparity.

Women are more likely to work part-time or casually than men

Last financial year, nearly two in three women (58 per cent) were employed part-time or casually.

Grattan Institute chief executive Danielle Wood said the gendered nature of care and unpaid work was the biggest barrier to change here.

“Australia has some of the most gendered divisions of labour in the OECD,” she said.

“Until we support men to engage more in care and unpaid work, the gender equality bus is driving with its handbrake on.”

Australian industries remain gender-segregated

More than one in two workers was employed in an industry dominated by one gender, according to the report.

Nearly 80 per cent of workers in healthcare and the social assistance industry are women, and about two in three (65 per cent) of education and training workers are women.

More than three-quarters of workers in mining, public administration, and safety and construction are men.

Even in female-dominated industries, the gender pay gap persists

Every industry has a gender pay gap that favours men – in five industries, the gender pay gap is above 20 per cent.

Last financial year, the pay gap actually increased in eight industries. The biggest rise was in rental, hiring and real estate services, moving it up one spot to third place in terms of the largest pay gaps.

The industries with higher average earnings, including financial services, tended to have wider wage gaps.

There are still more male CEOs than women

The number of men in managerial jobs also outweighs women even in female-dominated industries.

This was linked to the fact women are under-represented in full-time work, the report found, which means they were more likely to be passed over for senior roles.

Pauline Vamos, from Chief Executive Women, said it was important for workplaces to ensure more women ended up in leadership roles.

“Setting and measuring targets for women in leadership is critical in ensuring better representation at decision-making tables,” she said.

And while more companies are analysing their pay gaps, fewer than six in 10 employers took action last financial year as a result.

Wooldrige said the fact about 40 per cent of companies had improved their gender pay gap was promising. As vacancies were created due to increased employee mobility, she said organisations should seek to improve gender equality.

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