Women’s financial progress stalls in 2022

Oksana Patron

7 March 2023

The Financy Women’s Index (FWX) slipped -0.1 points in the 2022 calendar year bringing women’s financial progress to a halt and marking the first time in a decade for the index to finish a year in negative territory.

The data shows that the FWX slipped to 76.2 points out of 100 in the December quarter, which was shy of 76.3 points for the same period a year before.

What is more, a drop also set back progress in closing the gender gaps in employment and underemployement and was helped by the recent weakness in the jobs market under higher interest rates.

Following this, the employment sub-index fell to 71.5 points compared to 71.9 points in the September quarter and 71.7 points in December 2021, as the gender gap in monthly hours worked widened on slower female employment growth (0.3%) compared to that of males (0.9%).

The FWX underemployment sub-index also fell to 67.1 points compared to 69.2 points in September and 70.3 points in December 2021, as male underemployment improved, while female underemployment worsened.

According to independent economist, Nicki Hutley, even a marginal decline of the index was  a backward step and a “large policy failure”.

“The fact that women didn’t benefit as much as men during 2022 from the economic stimulus from COVID, is an indictment of those specific policies as well as broader policies aimed at gender equality,” she said.

However, 2022 did also produce some good news in the long-term divers of gender equality.

According to AMP Capital chief economist Shane Oliver, last year saw a progress towards gender financial equality continues to be made in areas like board representation.

“The pandemic appears to have accelerated behavioural change on the part of men in terms of contributing to family and home related unpaid work, which is critical to freeing up women to pursue career related endeavours,” he said.

Financy chief executive, Bianca Hartge-Hazelman, said there was still more to be done to challenge gender biases that acted as barriers to economic gender equality.

Therefore, Financy said it would also like to see the following actions considered in the upcoming May Federal Budget to improve financial outcomes for women and help to achieve gender equality in Australia.

1. A gender equality timeframe target as part of the Federal Government’s pledge to develop a National Strategy to Achieve Gender Equality.
   FWX Target area: Gender Equality Timeframes.
2. Superannuation payments to be included as part of Commonwealth Paid Parental Leave and unpaid leave portions.
   FWX Target area: Superannuation & Employment.
3. Investment in schools and university-led programs that educate students on the financial implications of gender stereotypes, and to ensure that women, have more choices that stereotypes often suggest.
   FWX Target area: Employment, Education and Gender Pay Gap.
4. Ongoing investment in media campaigns that seek to educate people on the benefits of breaking down gender stereotypes in unpaid work.
   FWX Target area: Unpaid work.
5. Mandatory gender-balanced targets of 40% minimum for female board directors across all listed companies by 2030 or within two years of list date. Plus, government incentivised programs that build the actual number of board ready women in Australia.
   FWX Target area: Board Leadership and Gender Pay Gap.
6. Government introduction of a procurement target on businesses to engage with genuine and authenticated female owned and led businesses.
   FWX Target area: Employment.