Financial gender equality progress weakens in March quarter

The Financy Women’s Index (FWX) has slipped for the second quarter in a row as cost-of-living pressures continue to bite.  

The index slipped 0.1 point in the March quarter, standing at 76.1 points out of 100. In the December 2022 quarter, the index stood at 76.2, and the annual score finished the calendar year in negative territory for the first time in a decade.

An increasing female underemployment rate relative to males “took the shine off” quarterly improvements in female monthly hours worked and greater gender diversity on ASX 200 boards in March, Financy noted.

There is now a 20-year wait for equality in underemployment. Meanwhile, there was a 5.8-year wait for equality in board leadership, which was the best-performing area of the index, and equality was expected on ASX 200 boards by 2030. 

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The gap in superannuation balances also showed improvement, falling to 19 years. 

However, the gap in education (and expected earnings) had a worrying time frame for equality of 139 years. Also, the 24-year wait for the gender pay gap to close remained unchanged since the December 2022 quarter.

Financy’s founder, Bianca Hartge-Hazelman, said: “The growing underemployment comes despite an all-time high in the number of monthly hours worked by women, helped by growth in female-dominated service industries such as retail trade, education and training, and other services.

“We appear to be seeing a growing desire, or perhaps financial need, among women to work more hours, but they are not able to fully achieve their employment requirements.

“Given that the gender gap in underemployment rate has widened in an environment of higher interest rates for the past two quarters, the risk is that this is not an aberration and that this may continue, resulting in higher female unemployment and a greater financial strain on women, particularly those on low incomes or single-parent families.”

She called the downward trend in the index “a blow to the financial progress of Australian women” as “shock absorbers” of high cost-of-living pressures, more than men. 

“This could weigh on the annual pace of progress towards gender equality beyond the next June quarter,” Hartge-Hazelman said. 

Additionally, Financy noted missed opportunities in the 2023–24 federal budget, such as no superannuation payments on paid parental leave, and time targets on gender equality.

“Paying super on paid parental leave or — even better — measures to encourage more women into courses that lead to higher pay would be considered fundamental,” Dr Shane Oliver, chief economist at AMP Capital, said. 

Natalie Previtera, acting chief executive at NGS Super, added that while Australia has made some big strides on the journey towards financial equity for women, there’s still a long way to go.

“Super on paid parental leave, access to affordable childcare, more flexible working arrangements for all genders, a greater emphasis on workplace cultures that support both parents taking on caring responsibilities, as well as greater transparency in wages, are some of the barriers we still need to crack,” she said.