Hourly gender pay gap narrows to 8.9%

The hourly gender pay gap in Australia narrowed to 8.9% in May 2023, according to data revealed by the country's statistics bureau on Monday.

ABS data showed that Australian men are earning $46.10 an hour on average, while women are only earning $42.

"This gap has narrowed from 9.7% in May 2021," said Bjorn Jarvis, ABS head of labour statistics, in a statement.

According to Jarvis, analysing the difference between male and female earnings is "complex" as no single measure can provide the complete picture.

"Hourly earnings comparisons are particularly useful in understanding gender pay differences beyond weekly earnings measures, given women are more likely to work part-time than men," he noted.

According to ABS data, 69% of all part-time employees are women with higher average weekly earnings than part-time men ($817 compared to $759).

"This reflects the greater use of part-time working arrangements by women in higher paying jobs, compared to men," Jarvis said.

Pay gap widest for managers

By occupation, the hourly gender pay gap in Australia is widest for managers with 19%, where male managers on average are earning $73.80 an hour, while women earn a lower $59.70.

"In dollar terms, the difference between average hourly earnings for men and women was greatest for Managers ($14.10 per hour) and Technicians and trades workers ($8.20)," Jarvis said.

"In percentage terms, the difference was greatest for Managers (19%) and lowest for Sales workers (7%) and Professionals (10%)."

The Survey of Employee Earnings and Hours is carried out every two years with a May reference period, providing insights into hourly and weekly earnings for men and women.

Australia's national gender pay gap has dropped to the lowest-ever 13.3%, based on the weekly earnings data released by the ABS.

A separate analysis from the Workplace Gender Equality Agency (WGEA), however, showed that the gender pay gap is at 21.7% - but still a record-low in terms of the agency's findings.

These findings come as WGEA is set to publish next month the gender pay gap data for businesses with more than 100 employees following legislation passed last year.