The Workplace Gender Equality Agency (WGEA) recently announced that Australia's national gender pay gap has risen to 14.2 per cent, up from 13.4 per cent six months ago.
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This sharp rise in pay disparity between men and women is alarming. However the political response has been mute.
According to the WGEA, the growing gap was driven by a rapid rise in men's pay in the early months of 2021, when the economy was recovering from lockdowns. In dollar terms, men, employed full-time, are now earning, on average, just over $260 a week more than women.
This widening gap is tangible evidence that women continue to carry much of the social and economic cost of the pandemic.
Average full-time wages for women are now lower than for men in every industry and occupation in Australia. On current trends, this gap will take 26 years to close.
This must be a wake-up call for employers and employees all over the country. If leaders don't take action to address the pay divide, it will only get worse as the pandemic continues, especially in the absence of adequate safety nets.
According to one report, the most significant driver of the gender pay gap is gender-based harassment and discrimination. However, there are many contributing factors that have been exacerbated during the pandemic.
These include discrimination and bias in hiring and pay decisions, female-dominated industries attracting lower wages, women's disproportionate share of unpaid caring and domestic work, and the lack of flexibility to accommodate caring and other responsibilities, especially in senior roles. Women also take greater time out of the workforce, which affects career progression and opportunities.
Addressing these barriers to gender discrimination will require sustained effort and commitment. No sector is free from issues of pay discrimination. Policymakers, legislators, businesses, and industry will need to work together to make the changes needed to drive it back down again.
The Equal Pay Day Alliance says government agencies can do more to promote and implement equal pay and employment opportunities in workplaces. The public service, for instance, is not immune to the problem, with women still dominating its lower ranks.
Young people, in particular, have an opportunity. As they enter the workforce, they can challenge the stereotypes and workplace culture that underpin the gender pay gap and urge employers to take action that will effect change. However, everyone can play a role in closing the gap.
There are many practical steps people can take.
They can start a conversation in their workplace about the gender pay gap, what it means to them, and how it can be closed, or they can urge their employer or union to conduct regular pay audits to identify and address discriminatory pay. When applying for jobs, employees can do some research and find out what others are getting paid.
Businesses and employers can help too, by encouraging employees to adopt flexible working arrangements, or by implementing a broader policy or strategy.
For those who can afford it, get professional financial advice and plan for your future.
This year, August 31 is Equal Pay Day. It's on this date because women need to work, on average, an extra 61 days to earn what men did last financial year.
The theme for 2021 is #WhatsYourPayGap. This is an opportunity to act to eliminate gender pay discrimination. There are huge potential gains for Australia if change happens, and the work of Australian women deserves to be equally and fairly valued.
This year the pay gap must finally get the attention it deserves. If all Australians are inspired to act, maybe there will be reason to hope for a more equal country.
- Sally-Anne Henfry is executive director of the Sir Roland Wilson Foundation.