Australia’s new national GPG of 13.8% released; employers urged to take action as IWD approaches

Twelve days out from International Women’s Day, the Workplace Gender Equality Agency (WGEA) has today announced Australia’s new national gender pay gap of 13.8%, a drop of 0.4 percentage points over the past 6 months from 14.2%.

Based on the latest half-yearly Australian Bureau of Statistics (ABS) Average Weekly Earnings data released today, WGEA has calculated that Australia’s latest national gender pay gap equates to a difference, on average, of $255 per week between the full-time earnings of women and men.

This latest ABS data is from mid-November, which was after the labour market had recovered from most of the Delta period impacts and before the emergence of the Omicron variant.

Across the country, the gap between the average weekly earnings of women and men is widest in Western Australia, with a difference of $434 per week; while South Australia has the smallest pay gap of $121 per week.

Mary Wooldridge, Director of the Workplace Gender Equality Agency, said while she welcomed the news that the pay gap has narrowed, in every industry and every state and territory, the pay gap in favour of men continues.

“Any time we see the pay gap decline, it is a welcome sign that the labour market is moving in the right direction. At 13.8%, this is the second lowest national pay gap in the last 20 years, with November 2020 being the lowest at 13.4%.

“Throughout the pandemic, we know women stepped back from the workforce as they took on more of the caring load. At the point in time of this new national pay gap data, it was a period of relative stability and economic recovery which saw increased labour force participation by both women and men.”

The new national gender pay gap figure follows the recent release of the WGEA scorecard on the state of gender equality in Australia, based on the results of the Agency’s latest census of private sector businesses with 100 or more staff.

The WGEA Director says in the lead up to International Women’s Day on March 8, together these latest figures provide an important benchmark at a time when many workplaces will turn the spotlight on their female employees.

“Australian employers must do more than pay lip service to gender equality on one day of the year. This is something that needs dedicated focus, sustained commitment, and, most importantly, action to continue improving the policies that we know make a difference,” Ms Wooldridge said.

“From our latest WGEA Scorecard insights, 42% of organisations were able to make some reductions on their pay gaps in the last 12 months, but 37% of organisations actually saw their pay gaps widen over the same period.

“As International Women’s Day approaches, companies need to seriously consider: are they creating workplaces that can harness the talents of half of the population?”

Ms Wooldridge said despite some entrenched views that the gender pay gap is a result of ‘women’s choices’, women do not simply choose to earn less than men.

“The decisions women make around work are not made in a vacuum – they are shaped by societal and cultural factors that begin long before they step foot in a workplace and continue throughout their lifetime.”

“Research conducted by WGEA, KPMG and the Diversity Council in the She’s Price(d)less report found drivers of the pay gap include a combination of factors such as Australia’s highly gender-segregated industries and occupations, and the fact feminised industries, such as health care and education, tend to be paid less; the disproportionate share of unpaid care by women; and unconscious bias and discrimination in recruitment, promotion, and negotiation processes.”

Ms Wooldridge said while there are a range of factors that contribute to the gender pay gap, employers can take steps to address the causes through dedicated actions focusing on how women are recruited, promoted, and paid, relative to men.

“Businesses need to look inwards and consider how they recruit, select, and promote all workers in the employee life cycle – and watch out for unconscious bias at every stage.

“One of the biggest misconceptions is that women are less likely to negotiate or ask for pay rises. Research has proven this isn’t true: women are asking, but they are less likely to receive pay rises than men.

“Practical actions like using free online tools to check job advertisements for gender-neutral language, having gender-balanced interviewing panels, or even clearly advertising roles as being able to be performed flexibly, can all be first steps employers can take to move beyond words and into action to address stereotypes and biases in their workplace.”

/Public Release. View in full here.