A jump in women’s part-time employment and more women enrolling in courses linked to higher expected career earnings has helped to propel economic equality forward in recent months.
The latest Financy Women’s Index rose by two per cent to 78.1 points in the September quarter, the best gain in two years. The rise cements a correction in women’s financial progress following the decline experienced during the pandemic.
The rate of women’s underemployment improved by 7.36 per cent in the September quarter as more women worked part-time. At the same time, the rate of men’s underemployment worsened by 5.59 per cent.
Meanwhile, female enrolment in Information Technology education courses has continued to grow, outpacing men’s enrolment. Information Technology is the highest-paying educational area for women to pursue. However, despite more women enrolling in these courses, female enrolments are still a third less than male enrolments.
Founder of Financy, Bianca Hartge-Hazelman, says the changes are good news for women’s equality amid a slowing economic environment.
“During the peak of the pandemic, the underlying data captured in the Index was volatile and if we compare where we are today to September 2020, the Index is less than 1 point (0.84) higher – a poor result.
“That said, if we look at economic equality prior to the pandemic in December 2019, the Index is nearly 5 points higher today than it was then. This suggests a correction in the Index to a more reliable pattern of progress, but the economic environment remains concerning for both female and male employment.”
Hartge-Hazelman said collective action and policy is needed to see the continued progress of women’s economic equality.
“Domestically, we’ve seen the Women’s Economic Equality Taskforce Final report handed to the Australian government and, offshore, the awarding of the Nobel Prize in economics to Professor Claudia Goldin for her research that has raised the profile of the gender pay gap and what is behind it – so it’s been a busy period of gender equity headlines and impact,” said Hartge-Hazelman
“What’s needed now is for the tide to turn from all this awareness raising on economic inequality to an environment of collective action by government, companies, and individuals to accelerate progress to equality.”
Dr Tracey West, financial education manager at Ecstra Foundation, says that boosting financial education in schools can help use close the financial knowledge gap between men and women.
“The call to action from the Women’s Economic Equality Taskforce Final report, which was released in October, to recommend immediate action on financial literacy in the classroom recognises the important role schools play in developing this critical life skill,” she said.
According to Financy, women’s representation on baords contines to be the best performing area of the Women’s Index, and there is confidence that we will see equality in representation on ASX 200 boards by 2030. Meanwhile, the Women’s Index predicts there are 19 years to go until there is equality in superannuation savings between men and women, based on the median lifetime balance. This figure has dropped substanitally since 2017, when it was predicted the superannuation gap would take 33 years to close.
Chief Economist at AMP, Dr Shane Oliver said the Women’s Index shows there is a still long road to achieving economic equality, but noted there are bright spots.
“This is particularly so in areas like the expected earnings flowing from the education choices women make and in unpaid work,” Dr Oliver said.
“But the good news is that the Index has improved significantly this year with strong progress in women’s board representation.”