The timeline to close the gender pay gap has been cut by 43% since 2017, now standing at 21.5 years compared to 37.5 years previously.
· The Pay Gap is Just One Piece of the Puzzle: The 21.5-year figure is the median timeframe for achieving overall financial equality. The full Financy Women's Index report will reveal the complete picture across all economic indicators.
· A "Two-Speed Economy" for Pay Equity: A stark divide is emerging between sectors. Retail Trade is a standout leader, making significant progress by narrowing its pay gap by 4.2 percentage points.
· Laggard Industries are Undermining Progress: In stark contrast, the Financial and Insurance Services sector is moving backward at an alarming rate, with its pay gap widening by 2.6 percentage points.
· Full Report Coming Soon: The comprehensive Financy Women's Index report, detailing all key indicators of women's economic progress, will be released in the first week of September.
Ahead of Equal Pay Day tomorrow, which marks the 50 additional days women must work each year to earn the same as men, new data reveals Australia is on a 21.5-year countdown to closing the gender pay gap.
A preview of the upcoming Financy Women’s Index (FWX) report shows the timeline to pay equity has improved slightly from 21.7 years in the previous quarter, as the national gender pay gap, based on ABS full-time average weekly earnings, fell to 11.5% from 11.9% at the start of this year.
Over the longer term, there has been substantial progress - since the Financy Women's Index started measuring timeframes to gender financial equality in 2017, the number of years to equality in the Gender Pay Gap has dropped by 43% from 37.5 years.
However, the full Women's Index report, set for release in the first week of September, will highlight that the 21.5-year figure is only the median timeframe for achieving overall gender financial equality in Australia.
“We have made great progress towards equal pay for women, but we still have a long way to go and Equal Pay Day serves as a reminder of this,” said Dr Shane Oliver, chief economist AMP.
“Equal Pay Day is a stark reminder of the economic reality for women, and our 21.5-year timeframe quantifies the long road ahead," said Bianca Hartge-Hazelman, author and founder of the Financy Women's Index. "While it's positive to see the number come down over the long term, it represents the median point in a much more complex journey. The fact that women have to work an extra 50 days into the new financial year just to catch up to men's earnings is unacceptable, and our full report in September will explore the structural barriers holding us back despite record female workforce participation.”
The preview data highlights a "two-speed economy" for pay equity. Industries showing the most significant improvement include Retail Trade (5.7% gap), Transport, Postal and Warehousing (7.0% gap), and Manufacturing (9.2% gap).
However this progress is undermined by an alarming backslide in other key sectors. The Financial and Insurance Services sector saw its gap widen by 2.6 percentage points to 21.0%, while the Health Care and Social Assistance sector still has the largest gap at 23.0%.
"The deterioration in Financial and Insurance Services is a major handbrake on our national progress," said Hartge-Hazelman. "It's this poor performance in key sectors that ensures Equal Pay Day remains a frustrating fixture on our calendar. The full Financy Women's Index will connect these dots and look at the broader journey to financial equality for Australian women."
The complete Financy Women's Index report will provide analysis of all seven indicators of economic equality, including employment, leadership, superannuation, and unpaid work, offering the most holistic view of women's financial progress in Australia.
About us:
About the Financy Women’s Index: The Financy Women’s Index™ (FWX) is an independent quarterly measurement of the economic progress of women and timeframes to gender equality in Australia. The FWX is produced by Financy, a Social Impact Insights & Communications company, and supported by an advisory committee of Australia's leading economic experts.
Contact details:
Bianca Hartge-Hazelman
Author Financy Women’s Index:
M: 0403 656 399