Cutting gender inequality can generate billions of dollars annually, says report

Australia could generate about $111 billion annually if only it prioritises cutting gender inequality at work by half, a new report, Delivering Respect for Women at Work, showed.

Recently, HRD reported on the latest Australian Bureau of Statistics, which showed that the national gender pay gap stands at 14.1%, an increase over the past six months.

HRD further reported that due to the worsening pay gap, the government calls on employers to take immediate action to alleviate women workers’ struggles, especially amidst rising inflation.

However, not only will women workers benefit from reducing the gender pay gap, as the new report released by the Australian Council of Trade Unions (ACTU) ahead of the Jobs and Skills Summit revealed it could also boost the nation’s income.

Women’s economic security and nation’s increased income

The report explained that if women could participate at the same rate as men, another 893,000 women could join the workforce.

“Even if just half that number were supported to get into work, they would earn an extra $26 billion each year,” ACTU said in a media release.

The peak union body also noted that if the gender pay gap was halved, women workers would take home an additional $85bil.

Thus, combining the supposed increase in women’s participation and the halved pay gap, a total of $111bil would be generated for women’s financial security and at the same time for Australia’s economic income, ACTU said.

“We can fix the skills shortage if we take action to support women to win well-paid and rewarding jobs and careers,” ACTU President Michele O’Neil said.

“There may be no greater measure to boost national productivity and economic growth than delivering respect and equity for women at work,” she added.

However, despite the union’s call for closing the gender pay gap and increasing women’s participation, the union said women workers still face several barriers, such as unequal care burden, undervaluation of their work, and workplace discrimination and harassment.

Proposals to suppress barriers for women

In line with the challenges women workers face, the report recommended increasing paid parental leave from 18 to 26 weeks and setting a path to raising it to 52 weeks by 2030.

“Australia has the second worst government-funded paid parental leave scheme in the developed world,” O’Neil said.

“In 2022, women shouldn’t have to give up on having a family, and men shouldn’t miss out on being involved in raising their kids because paid parental leave is insufficient,” the ACTU president said.

The report also proposed that the government prioritise making early childhood education and care free and accessible, as well as establishing a National Care Compact to help resolve the skills crisis in the care economy.

“Right now, women are leaving the industry in droves, but this sector could be a biggest source of secure, well-paid jobs in the future,” O’Neil said.

“A National Care Compact can address the crisis of overwork, low pay, job insecurity, lack of training and unsafe workplaces that these workers face,” she added.

Lastly, the report suggested that the government introduce multi-employer bargaining, which will also improve access to bargaining, especially in several feminised industries such as childcare, aged care, and cleaning.

Following the recommendations, the ACTU president emphasized that a significant step towards boosting Australia’s productivity and economic growth involves providing respect and equity for women workers.