Bianca Hartge-Hazelman

Key Results

• 73.3 points – The FWX rose 0.4 points in the Sept qtr, signalling gender equality progress helped by narrowing of the gender gaps in education, underemployment and board leadership.
• 139 years to gender equality in education. Now the worst performing area.
• 59 years wait for equality in unpaid work. Second worst performing area.
• 26 year wait for equality in employment and 17-years in underemployment. More Australian women are working to their desired potential.
• 6.1 year wait for equality in board leadership. Women account for 35 per cent of ASX 200 board directors.
• 23 year wait for equality in gender pay gap. This is the median timeframe to gender equality across all seven FWX areas.

The Financy Women’s Index (FWX) for the 2022 September quarter shows women’s financial progress is back on track despite being rocked by Covid disruptions; however the time frames to achieving economic gender equality remain daunting.

The FWX measures women’s financial progress with a higher score indicating advancement. The Index also measures time frames to economic gender equality and covers seven critical areas which include education (also described as education and expected earnings), employment, underemployment, the gender pay gap, unpaid work, board leadership (ASX 200) and superannuation.

The FWX in the September quarter increased to 73.3 points out of 100, up 0.4 points from 72.9 in June.

The gain was helped by gender gap improvements in underemployment (up 1.9 points), board leadership (up 0.8 points) and education (up 0.5 points).

At the current pace of annual progress, it will take 23 years to achieve gender financial equality (based on the median of all sub-index time-frames).

Author of the FWX, Bianca Hartge-Hazelman says: “There is still a lot of work to be done to ensure that Australian women fully recover financially from the pandemic and aren’t economically penalised for the choices they make in areas such as education and employment.

“While it is encouraging that the FWX is tracking stronger in 2022, up 0.2 points, it is still concerning that, in annual terms, the FWX remains 1.6 points lower than the record 75-points achieved in September 2021 and September 2020,” says Hartge-Hazelman.

The FWX report for the September quarter includes noteworthy progress for women in the sub-index area of education and expected earnings.

The FWX education sub-index rose to 93.02 points out of 100 in the quarter, up 0.45 points from June’s 92.57 point reading. This was helped by more women switching to fields of study (information technology up 68 per cent) that have higher expected earnings outcomes relative to men.

Chart 1: Timeframes to Economic Gender Equality

Despite the improvement in education, the area remains the worst performing relative to the time frame to equality, which stands at 139 years, says Dr Lili Sussman, chief strategy officer of non-bank lender Wisr.

“We will not see the gender equality gap closed until we challenge existing norms, processes and institutions,” says Dr Sussman.

Unpaid work has the second worst time frame to gender equality at 59 years, compared to 76 years in 2020.

The FWX area with the smallest time frame to gender equality is board leadership which improved to 6.1 years in the September quarter from 6.2 in June. The result has been driven by slow but steady gains in the number of females holding ASX 200 board director positions.

Superannuation has a 19-year estimated time frame to gender equality, which is an improvement on the 33 years reported at the start of this year.

“Despite the numbers improving, here we are in 2022 having the same discussions,” says Annick Donat chief executive officer at Clime Investment Management.

“This leads me to believe there’s still a wide gap between knowing and understanding or acceptance,” says Donat.

“Financy is hopeful that the Federal Government’s commitment to achieve gender equality and support women’s workforce participation will help reduce concerning time frames to economic gender equality in Australia,” say Hartge-Hazelman

Financy has stated that the following actions need to take place to accelerate financial outcomes for women and help to achieve gender equality in the near term.

1. A time frame target needs to be set as part of the Federal Government’s pledge to develop a national strategy to achieve gender equality. This time frame target would parallel the climate change approach by reducing a distant target to meaningful interim goals. FWX target area: gender equality time frames.
2. Superannuation payments to be included as part of Commonwealth Paid Parental Leave changes. FWX target area: superannuation.
3. Investment in schools and university-led programs that educate students on the financial implications of gender stereotypes, to ensure that women in particular, are able to make fully informed choices. FWX target area: employment, education and gender pay gap.
4. Ongoing investment in media campaigns that seek to educate society on the benefits of diversity in the home and breaking down the gender stereotypes around unpaid work. FWX target area: unpaid work.
5. Mandatory gender-balanced targets of 40 per cent minimum for female board directors across all listed companies by 2030 or within 2 years of list date. FWX target area: board leadership and gender pay gap.
6. Government incentives for organisations that have a target of 5 per cent procurement spend with genuine and authenticated female owned and led businesses. FWX target area: employment.

“The latest FWX index highlights that we are making progress to gender equality from an economic perspective in Australia but we have a long way to go,” says Dr Shane Oliver head of investment strategy and chief economist at AMP.

“Some areas like women on boards have made great strides thanks to a proactive approach and it’s amazing that corporate Australia is leading the way here with benefits for all Australians.

“Others where we are more reliant on attitudinal change – such as in unpaid work and the education men and women undertake – are lagging badly behind and at the current rate will take lifetimes to correct,” says Dr Oliver.

Read the report.

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Bianca Hartge-Hazelman

Regression in the gender pay gap and a stronger pickup in male employment growth over female in the June quarter has stifled a rebound in Australia’s progress to gender equality, the latest Financy Women’s Index (FWX) shows.

The FWX is a quarterly measurement of the economic progress of women and timeframes to gender equality in Australia. The FWX provides a snapshot on gender equality across seven critical areas: education, employment, underemployment, wages, unpaid work, ASX 200 board gender diversity and superannuation.

Overall, the Financy Women’s Index (FWX) rose by 0.5 points to 72.9 points in the June quarter from 72.5 points in March, helped by a small increase in the number of women joining ASX 200 boards and a narrowing of the gap between males and females in the underemployment rate.

But the FWX is yet to recover to where it was at the end of 2021 (73.2 points in December 2021) and in annual terms, the FWX is 0.3 points lower than where it was in June 2021 (73.3 points).

“It’s great that we are seeing an overall pick up in women’s financial progress and gender equality outcomes, but we need momentum and not regression in the gender gaps in employment and wages, if we are to claw our way back from the disruptions of the pandemic,” said Bianca Hartge-Hazelman, founder of the Financy Women’s Index.

The Coronavirus pandemic is largely to blame for disrupting a decade of positive momentum in gender equality progress in Australia, particularly when it comes to employment and wages.

Since March 2012, the FWX headline score had been increasing with each passing year and progress started to hit its stride from December 2017, when the FWX recorded quarter-on-quarter sustained growth helped by improved gender gaps in employment, wages, leadership, unpaid work and superannuation.

But in December 2020 the impact of the pandemic became most apparent with the Women’s Index suffering its first quarterly drop in sometime and most significant fall of 3 points on record. The FWX fell to 72 points in December 2020, from 75 points in September 2020.

Holding back economic gender equality in the June quarter has been a worsening gender pay gap which widened to 14.1 per cent in May, based on the latest Average Weekly Wages data released by the Australian Bureau of Statistics on Thursday.

The gender divide also widened in employment with the number of monthly hours worked by men up by 2.8 per cent in June compared to 1.3 per cent for women.

“The Financy Women’s Index has shown welcome progress in the June quarter but is still down from its 2020 high and there remains a long way to go before women achieve economic equality with men,” said Dr Shane Oliver, chief economist, AMP Capital.

“The pandemic showed a path forward in enabling more flexible working, but it also had a darker side in seeing many women take on more of the tasks around the family and home. The key is to build on the positives and keep the momentum to improvement going.”

In terms of timeframes to economic gender equality, women are now closer to achieving gender equality in ASX 200 board leadership than for any other FWX indicator.

Chart 1: Timeframes to Economic Gender Equality

The FWX ASX Leadership sub-index improved to 6.2 years from 6.4 years based on the rate of annual growth over the past decade.

“But the pace of progress towards gender equality in leadership continues to slow and because of this, it is questionable if we will even achieve equality

before 2030 in this area,” said Ms Hartge-Hazelman.

A widening Gender Pay Gap in May resulted in the timeframe to equality in this area increasing to 23.4 years from 22.7 last quarter.

The worst performing area of the FWX remains Unpaid Work, which stands at 59 years before equality is achieved, based on the most recent data update in the March quarter.

This timeframe is about double that seen in Employment, where the years to equality fell to 26 years in June, from 26.3 in the previous quarter.

Superannuation has an unchanged timeframe to equality at 19 years, which is an improvement on the revised 31 years as recorded in the December 2021 quarter.

The time to equality in Underemployment worsened to 16.3 years from 15 years in the March quarter and has been affected by recent volatility during the past two years relating to the pandemic.

“We’re decades away from equality and that makes me frustrated and fired up! For others feeling this same way, let these statistics be a catalyst behind driving action,” said Dr. Lili Sussman, chief strategy officer, Wisr.

“Employers should be re-evaluating how equal their processes really are. From recruitment onwards, Wisr’s processes encourage systemic change, eradicating the traditional aspects of the recruitment, promotional and remuneration processes that have kept marginalised people from excelling.”

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