Financial gender equality sees strongest growth in three years

Financial gender equality in Australia has experienced its strongest annual growth since December 2021, with the 2024 figure helped ahead by progress in three sub-indexes.

A record number of women on
ASX 200 boards, a bridging of the gender gap in Unpaid Work, and growth in female employment to reach its highest since June 2023 saw the Financy Women’s Index (FWX) score jump to 77.59 points in December 2024 from 76.83 points in December 2023.

“The Financy Women’s Index showed further progress towards financial equality for women in Australia, but we have a lot further to go – particularly in areas like education and unpaid work,” Dr Shane Oliver, chief economist at AMP and FWX Advisory Committee member, said.

“It’s critical that the outcome of the upcoming Federal election maintains this progress and doesn’t see a backsliding in flexible working arrangements which risks making it harder for women to participate fully in the workforce.

“Making it harder for women to participate in the workforce would likely mean less female labour market participation which could mean lower economic activity than would otherwise be the case and a risk of higher inflation flowing from the smaller labour force. It could also threaten the economy’s ability to respond to the pressures of an aging population which will mean more consumers for each worker.”

Bianca Hartge-Hazelman, author of the Financy Women’s Index, said the cause for gender equality really gained momentum after the Workplace Gender Equality Act came into effect in 2012 and the Me Too movement kicked off in 2018.

“The current pace of progress in gender equality depends on consistent policy support and corporate commitment,” she said.

“We’ve seen over the past two decades how political shifts can influence outcomes, and the upcoming election will be critical in determining the trajectory for years to come.

“However challenges remain, with persistent cost of living pressures, a looming Federal Election, proposals to unwind flexible work in the public sector, and the re-election of US President Donald Trump. These factors – particularly Trump’s attack on Diversity, Equity and Inclusion – mean there is greater uncertainty and concern about the outlook for gender equality.”

The FWX Employment sub-index increased by one point to 73.6 points in December 2024; the FWX Unpaid Work sub-index grew by two points to 69.8 points after the latest Household, Income and Labour Dynamics in Australia (HILDA) Survey release indicated some progress; and the FWX Gender Pay Gap sub-index registered only 0.1 point growth to 88.1 points, after the national gender pay gap broadened to 11.9 per cent due to men’s wages growth at the end of the year.