Australia needs to do more to challenge outdated gender norms, which continue to contribute to a “two steps forward, one step back” rate of progress on gender financial equality, according to the latest Financy Women’s Index (FWX).
The FWX, which tracks timeframes to economic equality every quarter, slipped to 77.5 points in the June quarter of 2024, down by 0.2 points from a revised 77.7 points in March. Despite the decline, the Index has improved over the past 12 months, gaining 2.36 points from 74.8 points in June 2023.
Financy founder and CEO Bianca Hartge-Hazelman notes that despite the gains women are making in the labour market participation and on the sporting field as evidenced by the Paris Olympics, persistent gender norms are still holding back female progress relative to men.
“Similar to what we saw during the Coronavirus pandemic, women are once again bearing the brunt of economic uncertainty largely because they still tend to occupy more flexible and insecure forms of employment, such as part-time and casual roles,” Ms. Hartge-Hazelman says. “As business conditions weaken, these roles are more likely to be adjusted, with hours reduced to the detriment of the female workforce.”
Natalie Previtera CEO of NGS Super notes that there is no way to achieve equality, without women continuing to take up the mantle of visible leadership – on the field, in the boardroom, in financial and executive roles. “It’s important to have a voice and lead the charge from the front. As we’ve seen with the Matildas and our female Olympians, women’s success in their chosen field has the power to inspire a nation.”
Dr Shane Oliver, Chief Economist at AMP says the areas desperately requiring improvement include the lower paying career choices young women make when they start their tertiary education relative to men and the ongoing discrepancy in unpaid work around the home.
“Both require attitudinal change,” he says. “Ideally this should start with what we tell our young girls (that they can do whatever they want, and certain jobs pay a lot more than others) and young boys (that girls are their equal, they should expect to share the load around the home and their gender equity benefits all of us).”
The headline FWX score for the June quarter was buoyed by a record-breaking improvement in the national gender pay gap, which fell to 11.5% in May as reported in August. This improvement, reflecting increased wages for early childhood educators and aged care workers, helped lift the FWX Gender Pay Gap sub-index to 88.5 points, up from 88 points in March.
However, this progress was overshadowed by setbacks in employment outcomes for women relative to men, particularly in monthly hours worked and underemployment. The FWX Employment sub-index, which reflects the gender gap in monthly hours worked, fell to 75.4 points, down from 75.6 in March, as female hours declined by 0.3%, compared to a 0.1% decline for men.
The FWX Underemployment sub-index also worsened in the June quarter, dropping to 71.2 points from 72.2 in March. The female underemployment rate increased by one percentage point to 7.71%, while the male rate improved, dropping by 6 percentage points to 5.22%.
Looking Ahead: Timeframes to Gender Equality
Australia’s path to gender equality remains long, with the FWX highlighting varying timeframes across key indicators:
- ASX 200 Board Leadership: Gender equality is expected by 2030, with a current wait time of 5.2 years, down from 5.7 years 12 months ago.
- Gender Pay Gap: Equality is expected by 2047 with a 22.6 years wait to close this gap, an improvement from 24.3 years in June 2023.
- Superannuation: Equality is expected by 2042 with a wait of 17.7-years. New data is awaited to update these figures.
- Underemployment Rate: Equality is expected by 2024 with a 20.2-year wait.
- Employment: Equality is expected by 2049 with a 24.6-year wait.
- Unpaid Work: Equality is expected by 2070 with a 45.5 year wait.
- Education: Equality is expected by 2414 with little progress being made and a troubling wait of 389.2 years.
“As a general reflection, it’s incredibly frustrating that we see these great moments, such as in sport, at the same time we see the repetition of entrenched norms that see women bear the burden of tougher economic times,” says Nicki Hutley consulting economists. “But one must continue to hope that the big moments will change the norms, so the everyday standards improve.”
While Australia has made significant strides in closing the gender pay gap, more work is needed to address the persistent gender norms that continue to hold back progress in other areas. As economic conditions remain uncertain, it is crucial that policymakers and businesses prioritize gender equality in all aspects of the labour market to ensure sustained progress.
Ms. Hartge-Hazelman remains cautiously optimistic, citing the success of Australian women in the Paris Olympics as a positive sign. “These wins are impressive, and they help to shift the narrative and gender norms over the longer term, which we believe should, in turn, drive greater progress across all of our indicators,” she says.
Financy is a technology company that provides data insights through the Financy Women’s Index and empowers business leaders to take action on Diversity, Equity and Inclusion through the IMPACTER platform.
