Australian women have reason to feel more optimistic about their economic progress but work still needs to be done.
The Financy Women’s Index, powered by Data Digger, improved 0.7 percentage points to 109.9 points in the three months to June 30, 2017.
The result builds on the inaugural December Index as the number of women working full time surpassed 3 million for the first time on record, whilst the number of men in full-time work has flatlined at 5.2 million.
At the end of June, the female participation rate on a seasonally adjusted basis was 59.7%, a record.
“This is a really good sign,” said AMP Capital chief economist Dr Shane Oliver. “Women are continuing to make progress relative to men thereby helping to reduce the gender gap at a time of somewhat mixed economic conditions and subdued wages growth.”
Among the key findings of the Financy Women’s Index are:
- The Financy Women’s Index improved in the June quarter to 109.9 points, building on the inaugural December report of 109.1 points.
- Job gains in full-time work participation boosted the Index as the number of women in full-time employment exceeded three million.
- The gender pay gap narrowed to 15.3% as female wages rose.
- The pace of progress in female board appointments in the top 20 companies remains steady at 31%.
The current level of females represented in top 20 ASX boards remains unchanged at 31% in the June quarter, with women occupying 61 board positions out of 197.
Some of Australia’s biggest listed companies, the Commonwealth Bank of Australia, Telstra and Wesfarmers continue to meet or exceed gender diversity targets set by the Australian Institute of Company Directors.
Speaking to ABC Lateline about the Financy Women’s Index, Jennifer Westacott chief executive of the Business Council of Australia said not enough progress is being made to improve female board representation.
“I understand why people say well maybe we need to go to a quota system. The difficulty I have got with that is we are not doing the work on the pipeline.
“We are not bringing women through into senior management positions so their natural next step is onto a board or chief executive position.”
One of Australia’s most prominent female executives, OneVue chief executive Connie McKeage welcomed the findings, but said more needed to be done to encourage women into senior management roles.
“What we find most heartening is the reduction of the gender pay gap being the lowest in 11 years and the number of young women enrolling in tertiary education albeit still in the most popular areas of study are not the most paying,” she said.
“Until we get more women running businesses or being responsible for profit and loss (P&L) outcomes we will continue to see the minimum amount done to bring balance to boards.”
The national gender pay gap based on average weekly ordinary full-time earnings narrowed to 15.3%, which is the best result since 2006.
The Index also reaffirmed that the average superannuation balance of women, as measured across all life stages, continues to lag that of men and represents 70% of the average male balance.
A record number of women are also undertaking tertiary education with 52% of female student enrolments compared to 48% males. Women are also choosing to study courses that lead to careers in higher paying and trending sectors like IT and management, at a faster pace than men.
“The relatively strong growth of female enrolments in tertiary education points to an ongoing increase in the number of females looking for full time jobs suggesting that this demand will be met. So the rising trend of full time female workforce participation is likely to be met,” said Dr Oliver.
Dr Oliver said it was possible that a 10% lift in female full-time work participation rates in line with male participation rates, could lift Gross Domestic Product (GDP) by as much as 8%. This equates to an estimated $147 billion boost to the economy.
Gail Pemberton, chair of technology company Melbourne IT, added that
fund managers could be doing more to directly advocate for gender diversity on boards.
“The largest shareholders of most Australian listed companies are usually fund managers and super funds and as such they have real power to directly influence diversity on boards,” she said.
About the Financy Women’s Index
The Financy Women’s Index analyses data from Australia’s major statistical agencies and is designed to highlight trends among women; from the courses they study once they leave high school, what industries they work in, earnings and savings in superannuation, through to those occupying top company board positions.
The Index helps to cut through much of the noise often reported around gender equality and pay in the workforce.
“For economic progress to continue, we need to see female board participation continue to rise, more women supported in full-time work, a further narrowing of super and wage gaps, plus a focus on the selection of higher paying careers while at high school,” said Financy Women’s Index author and founder Bianca Hartge-Hazelman.
Additional comments about the Index
“What Financy has created is long overdue and will hopefully move the debate away from subjective opinions to help drive fundamental shifts in behaviours in areas where the statistics are irrefutable,” said OneVue chief executive Connie McKeage.
“Policy makers pay attention to facts. The Financy Index produces statistics that can be leveraged to create a burning platform for change.
“Contributing to positive change is the opportunity that is right here right now and politicians and policy makers can bring visibility to issues that need to be addressed to give Australia the best chance of developing a sustainable economic future and that can only be contemplated if we can tap into the full talent pool available to us,” said Ms McKeage.
“The Financy Index brings together an important collection of statistics which, when examined together, are crucial to understanding women’s financial position and the nature of economic gender inequality in society,” said Dr Leonora Risse representative of the Women in Economics Network said.
“The report makes a valuable contribution to the economic discussion of gender equality in Australia. Our key government agencies should be analysing and paying attention to statistics such as these.”
“It’s fantastic to have an objective data based measure,” said Gail Pemberton, chair of Melbourne IT.
“I think when you are trying to drive change it is easier to talk about facts. They take the conversation forward and the debate becomes about solutions not the degree or extent of the problem.”
Bianca Hartge-Hazelman
Founder and Editor
Financy Women’s Index
m: 0403 656 399
biancahh@financy.com.au
Daniel Petrie
Founder and chief analyst
Data Digger
m: 0408 919 767
e: Dan.petrie@datadigger.com.au