2. Gender equality: economic snapshot

Data snapshot

Gender pay gap

Workforce participation rate

References: ⁶, ⁷, ⁸, ⁹, ¹⁰

Income is more unequally distributed among women than it is among men

The distribution of income in society is an important dimension of equality and wellbeing. The Gini coefficient is the most widely recognised measure of income inequality. A Gini coefficient of zero indicates perfect equality, where everyone has the same income. A value of one indicates perfect inequality, where one person receives all income, and everyone else receives nothing.

Using this measure, not only do women in NSW earn less than men, but there is also a greater degree of income inequality across the population of working age women than is the case for working age men.

In 2021-22 in NSW, the Gini coefficient for women of working age was 0.411, compared to 0.385 for men,¹¹ indicating a more uneven distribution of income among women.

NSW Treasury estimates that in 2021-22, 17 per cent of women in NSW were living below the poverty line compared to 14 per cent of men.¹² The poverty line is defined as 50 per cent of the median income of the total population.¹³

Income inequality and poverty rates are important indicators of women’s economic security. Monitoring these indicators is important to support the development of pathways for individuals to exit poverty and ensure that economic and social opportunities are available to everyone in NSW.

Employment outcomes for women are improving but are not at parity with men

The NSW labour force participation rate for females aged 15 years and over was 62.1 per cent as at May 2024.¹⁴ This was 7.8 percentage points below the male participation rate.¹⁵ Progress on narrowing the gap is evident, decreasing from 11.3 percentage points in May 2019, the largest gap in the past five years. An increase in employers providing flexible working arrangements post-pandemic¹⁶ has likely enabled more women, particularly those with caring responsibilities, to enter and stay in the labour market.

Different cohorts of women still experience unequal participation in the workforce. As at April 2024, in NSW the participation rate for:

• migrant women who have arrived within the past five years was 58.0 per cent¹⁷
• women living in regional NSW was 59.9 per cent, 3.2 percentage points below that of women in Greater Sydney¹⁸
• women aged 50 years and over was 39.9 per cent compared to 48.9 per cent for men of the same age.¹⁹

Although not comparable to the current 2024 data, according to the 2021 Census (when the female participation rate was lower), the workforce participation rate for Aboriginal and Torres Strait Islander women in NSW was 56.0 per cent, compared to 59.1 per cent for non-Indigenous women.²⁰

Gendered disparity in full-time and part-time work remains. In May 2024, 59.3 per cent of employed women worked full-time compared to 80.1 per cent of men.²¹ Meanwhile 40.7 per cent of women worked part-time compared to 19.9 per cent of employed men.²²

The gender gap in underemployment also persists. In May 2024, the underemployment rate (employed people who want and are available for more hours of work, as a share of the labour force) for females was 7.4 per cent compared to 5.3 per cent of men.²³ Women aged between 25-44 years are underemployed for three times longer than men of the same age.²⁴

Industry and occupation gender segregation remains entrenched in the workforce

Promoting a more gender balanced workforce has the potential to improve equity and the allocation of talent, as well as reduce the gender pay gap.

As at February 2024, the industries with the largest female workforces in NSW were health care and social assistance (76.2 per cent female) and education and training (71.2 per cent female).²⁵ The most male dominated industries were mining (88.3 per cent male) and construction (86.2 per cent male).²⁶

In the past year, the gap between female and male representation has widened in some industries, with mining becoming more male dominated as male representation increased by 7.7 percentage points, while female representation in health care increased by 0.7 percentage points.²⁷

While the gendered distribution of occupations follows similar patterns, some improvements are emerging. In February 2024, females made up 71.5 per cent of clerical and administrative workers, 67.0 per cent of community and personal service workers and 56.5 per cent of sales workers.²⁸ These occupations have experienced the largest decrease in gender segregation over the past year, revealing gradual progress towards equitable representation. However, 86.2 per cent of machinery operators and drivers and 83.1 per cent of technicians and trades workers are male.²⁹ The gendered make up of these male dominated occupations has not changed significantly in the past year.

The drivers and impact of this entrenched workforce gender segregation is outlined in section 4 – Economic opportunity and advancement.

Progress towards closing the gender pay gap in NSW

The gender pay gap refers to the difference between women’s and men’s full-time average earnings and is an important indicator of inequality within our economy. In NSW, women are paid on average 11.0 per cent less than men, or $217.30 less per week.³⁰ This has narrowed from 11.8 per cent in May 2023. The gender pay gap in NSW is slightly below the national average of 12.0 per cent.³¹

Addressing the drivers of the gender pay gap is central to reducing it. Workforce gender segregation accounts for 24 per cent of Australia’s gender pay gap.³²

Gender norms and stereotypes form in the early years at school and shape career choices. Gender segregation can also be addressed by making male dominated workplaces safer for women and valuing feminised workforces.

‘Greedy jobs’ are jobs that demand long hours and have limited flexibility.³³ These jobs require overtime, weekend or evening work. They attract higher earnings and contribute to the gender pay gap as more men work in these roles than women.³⁴ Women are less likely to enter these ‘greedy jobs’ as social norms lead to women taking on disproportionately more child care, household and other caring responsibilities and unpaid labour.³⁵

These drivers are discussed in section 4 – Economic opportunity and advancement.

The NSW Government is the largest employer of women in Australia

As at June 2023, 66.5 per cent of the 453,310 public sector employees were women.³⁷ The occupations with the highest number of female employees were nurses (86.7 per cent), school support staff (83.7 per cent), and social and welfare professionals (84.0 per cent).³⁸

As at June 2023, the NSW public sector gender pay gap, based on the median remuneration of non-casual employees, was 6.2 per cent.³⁶ This reflects the public sector gender pay gap prior to the NSW Government’s abolishment of the public sector wages cap which improved wages in female dominated sectors.

The NSW Government is committed to being a model employer by paying female dominated workforces in the public sector fairly and providing economic security. 

Abolishment of the public sector wages cap, the 4.5 per cent pay increase in 2023-24 (including a 0.5 per cent increase to superannuation), and the record pay increase for teachers, school psychologists and counsellors, was the Government’s first step to supporting higher wages and rebuilding essential services.

Nurses received the largest pay rise in over a decade in July 2023. In October 2023, all of NSW’s 95,000 teachers received an historic pay rise making NSW teachers the best paid in the country. 

The NSW Government also made 16,589 temporary teachers and support staff permanent, 85 per cent of whom are women. This significant change will improve job stability and economic security for this female dominated workforce.

The take up of paid parental leave by men in the public sector is increasing

The public sector paid parental leave reforms has seen an increase in the average number of days of paid parental leave taken by men. 

From 2019 to 2023, the average days taken by male employees in the public sector has risen from five to 28 days. 

The number of men taking parental leave in the public sector has also increased since the reforms were introduced. This is a positive trend as more men share in caring responsibilities.

Reference:³⁹