The gender pay gap is closing three times faster under the Albanese Government, than under the previous Coalition Government according to ABS wage data released today.
The pay gap is now 11.5 per cent, a record low, down from 14.1 per cent when the Albanese Government came to power. The gap is now closing at an annual rate of 1.3 per cent, more than three time faster than the far slower annual rate of 0.4 per cent on average achieved under the previous Coalition Government.
The gender pay gap has closed faster recently for a range of reasons, including strong growth in full time jobs for women over the past two years; strong increases in award wages; and the union won pay increase for aged care workers.
There are now a record 3.9 million women employed full-time in Australia and 308,000 full-time jobs for women have been created since the Government changed in May 2022. Full-time employment has grown faster on average under the ALP (5.1 per cent annual growth) compared to the LNP (2.4 per cent).
The Government has also funded aged care pay rises of up to 23 per cent, supported three good increases in minimum and award wages that predominantly help women in lower paid jobs, and has toughened company reporting on the gender pay gap.
The official measure of the Gender Pay Gap is the difference in average ordinary time earnings between men and women working on a full-time basis. Women in full time work now earn on average $1,782 per week, compared to men earning $2,014.
The gender pay gap is caused by the undervaluation of work in occupations that are dominated by women, particularly in care, as well as discrimination in recruitment, hiring and the setting of pay.
Women are also far more likely to be in part time and insecure work and have significant career breaks because of the disproportionate and unpaid caring work they perform.
The Government’s recent strengthening of flexible working rights and paid parental leave are also expected to help women better secure the hours and pay they need.
The gender pay gap is expected to shrink further given the Government’s commitment to fund a 15 per cent pay increase for early childhood education and care workers phased in from December, and stronger protections for workers misclassified as casuals, who are mostly women, coming into effect at the end of August.
Quotes attributable to ACTU Assistant Secretary, Liam O’Brien:
“Today’s record low gender pay gap is great news for Australian working women.
“There is real reason to celebrate this result because it means that working women have moved much closer to achieving income parity with men.
“The gender pay gap is closing three times faster under the Albanese Government, than the previous Coalition Government because the government has lifted wages for aged care workers, minimum and award workers and pushed through the secure jobs better pay laws.
“Working women deserve equal pay and Australia’s economy can’t afford to lose the skills, talent, and experience of working women.
“Australian unions won’t stop until we smash the gender pay gap altogether because Australia needs the full and equal participation of women in the workforce.”
