Gender Pay Gap Narrows (but women are still behind)

Recent data from Stats NZ reveals that women experienced a significant increase in median hourly earnings over the year to the March 2024 quarter. However, they still lag behind men in current earnings.

According to Stats NZ, the median hourly wage for women in ordinary jobs surged by 6.9%, or $2.51, reaching $38.87 over the year to the March 2024 quarter. In contrast, men saw a 3.8% increase to $42.79, marking a $1.57 rise.

"While women have seen larger increases in average hourly earnings over the past year, as measured by the Quarterly Employment Survey (QES), men's average hourly earnings remained nearly $4 higher than women's in the March 2024 quarter," stated Sue Chapman, manager of business employment insights, in a press release.

The gender pay gap is a high-level indicator of the difference between women's and men's earnings. It compares the hourly earnings of women and men working full-time and part-time. It refers to an organisation-wide, industry-wide or economy-wide gender pay problem.

We are talking about a multifaceted issue, influenced by various factors. Historically, disparities in education, occupational choices, and industry preferences have contributed significantly to this gap, alongside the prevalence of part-time work among women. However, recent insights reveal that these factors can only account for approximately 20% of the existing gender pay gap.

The fact is that the bulk of the gender pay gap, a staggering 80%, is now attributed to what researchers term as 'unexplained' factors. These elusive elements encompass conscious and unconscious biases, as well as disparities in the choices and behaviors of men and women. Behavior, attitudes, and biases; occupational segregation, unpaid and caring work are among the subjective, unmeasured, and "unexplained" factors that leave women behind in the fair wage scale.

According to Stats NZ, in New Zealand, the official gender pay gap is calculated annually using the median hourly earnings from the Household Labor Force Survey (HLFS). This tool is a survey conducted acoss European households or individuals, in three categories: employed, unemployed and people outside the labour force.

Stats NZ emphasized that the HLFS provides a "better measure of 'typical' earnings than averages," highlighting the different survey coverages between the QES and the HLFS.

Thus, according to these measurement, the mean hourly earnings rose by 5.2% over the year to the March 2024 quarter, as annual wage cost inflation stood at 4.1%. Total mean hourly earnings in the sector surged by 8.1%, while wage cost inflation was at 6.3%.

Despite 50 Years of Equal Pay Act, gender gap is still there

Half a century since the implementation of the Equal Pay Act, women in New Zealand continue to grapple with economic discrimination. Despite strides towards gender equality, the persistent gender pay gap casts a shadow over workplace fairness and parity.

In a bid to shed light on this issue, the philanthropic Clare Foundation has backed a groundbreaking initiative – the "Mind the Gap" registry – aimed at unveiling wage disparities between men and women in New Zealand. Launched on International Women's Day in 2022, this registry encourages New Zealand businesses to publicly disclose their gender pay gaps. Already, it has garnered support from several major corporations in the country, who assert that transparency is the linchpin for attracting talent in an increasingly competitive job market.

The disparity is global

On a global scale, the disclosure of gender pay disparities is not a novel concept. Countries like Australia and the United Kingdom have already mandated reporting on gender pay gaps and are taking actionable steps based on the collected data. "Overseas experience tells us that when we acknowledge our gender pay gaps, we are more likely to work towards eliminating them," affirms Dellwyn Stuart, spokesperson for "Mind the Gaps," in an interview with Scoop.

In New Zealand, some companies compile data and report on gender pay gaps, alongside insights into their efforts to diminish them. However, having a standardized means of communicating this data will bring it to the forefront and enable meaningful comparisons.

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Article: Why gender equality laws aren't working — People Matters Global