Report on Gender Pay Disparity and Occupational Segregation in Australia: An Analysis Through the Lens of Sustainable Development Goals

A comprehensive new report from Jobs and Skills Australia (JSA) reveals persistent and widespread gender-based economic inequality, indicating significant challenges in meeting key United Nations Sustainable Development Goals (SDGs). The findings underscore a systemic failure to achieve gender equality (SDG 5), promote decent work and economic growth (SDG 8), and reduce overall inequalities (SDG 10).

1.0 Key Findings on the Gender Pay Gap and SDG 5 (Gender Equality)

The research highlights a stark reality of gender inequality in the Australian workforce. The data directly contravenes the principles of SDG 5, which calls for an end to all forms of discrimination against women and girls and ensuring women’s full and effective participation and equal opportunities in economic life.

• In 98% of the 688 occupations analysed, men are paid more than women on average.
• Across all workplaces, women face an average pay gap of 30%, earning just 70 cents for every dollar earned by a male colleague after a decade in the workforce.
• This disparity is a clear violation of the principles of equal rights to economic resources as outlined in SDG Target 5.a.

2.0 Occupational Segregation as a Barrier to SDG 8 (Decent Work and Economic Growth)

The report identifies deep-rooted gender segregation in the labour market as a primary driver of pay inequality and a significant impediment to national productivity. This situation directly undermines SDG 8, particularly Target 8.5, which aims for full and productive employment and decent work for all, including equal pay for work of equal value.

2.1 The Extent of Segregation

1. Only one in five Australian workers is employed in an occupation with a relatively balanced gender mix.
2. Approximately 70% of occupations have shown no meaningful progress towards gender balance in the last 15 years.
3. Segregation is most acute in lower-skilled occupations and in sectors experiencing critical labour shortages, such as construction and aged care.

2.2 Economic Consequences

The JSA report frames gender segregation as a “handbrake on our economy.” By effectively excluding half the population from certain occupations, this dynamic exacerbates skill shortages and limits productive potential, hindering progress towards sustainable economic growth as envisioned in SDG 8.

3.0 Systemic Inequalities and the Impact on SDG 10 (Reduced Inequalities)

The findings reveal that the pay gap is not uniform but is amplified for specific demographics and by systemic barriers, highlighting a failure to address SDG 10, which focuses on reducing inequality within and among countries.

3.1 The “Motherhood Penalty”

A primary cause identified for the pay gap is the “motherhood penalty,” where women’s earnings drop by an average of 55% in the five years following the birth of their first child. This systemic barrier prevents equal economic participation and perpetuates inequality.

3.2 Intersectional Disadvantage

• The pay gap widens to nearly 40% for First Nations women, demonstrating a critical intersection of gender and racial inequality that SDG 10 aims to eliminate.
• Even in female-dominated professions, a pay gap persists. For example, male childcare workers (a 98% female workforce) earn 14% more than their female counterparts. Male registered nurses (a 90% female workforce) earn 21% more on average.

4.0 Conclusion and Policy Imperatives for the 2030 Agenda

The JSA report provides conclusive evidence that significant structural barriers prevent Australia from achieving its commitments under the 2030 Agenda for Sustainable Development. The persistent gender pay gap and occupational segregation are direct affronts to the goals of Gender Equality (SDG 5), Decent Work and Economic Growth (SDG 8), and Reduced Inequalities (SDG 10). Addressing gender segregation is not only a matter of fairness but a critical strategy for resolving labour shortages, closing the pay gap, and fostering a more inclusive and productive society in line with global sustainability targets.

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article primarily addresses issues related to gender inequality in the workplace, which directly connects to several Sustainable Development Goals (SDGs). The main SDGs identified are:

• SDG 5: Gender Equality – This is the most prominent SDG, as the article’s central theme is the gender pay gap, occupational segregation, and the “motherhood penalty,” all of which are core issues of gender inequality.
• SDG 8: Decent Work and Economic Growth – The discussion on unequal pay for equal work, labor shortages exacerbated by gender segregation, and the overall impact on economic productivity directly relates to the goal of achieving decent work and sustainable economic growth for all.
• SDG 10: Reduced Inequalities – The article highlights economic inequality not just between men and women but also within the female population, specifically mentioning the larger pay gap for First Nations women. This aligns with the goal of reducing inequalities within and among countries.

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the issues discussed, several specific targets under the identified SDGs are relevant:

1. SDG 5: Gender Equality

   • Target 5.1: End all forms of discrimination against all women and girls everywhere. The article’s finding that “men are paid more than women in 98% of occupations” is a clear example of economic discrimination against women, which this target aims to eliminate.
   • Target 5.4: Recognize and value unpaid care and domestic work…and the promotion of shared responsibility. The article directly points to the “motherhood penalty,” where “Australian women’s earnings drop by 55% in the five years after having their first child,” highlighting the disproportionate economic impact of caregiving on women.
   • Target 5.5: Ensure women’s full and effective participation and equal opportunities…in economic…life. The persistence of “gender segregation in Australian workplaces,” where “in about seven in 10 occupations there had been no progress on gender balance in 15 years,” demonstrates a lack of equal opportunity for women in the economic sphere.

2. SDG 8: Decent Work and Economic Growth

   • Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men…and equal pay for work of equal value. This target is explicitly addressed. The article’s core finding that female workers are “typically paid 70 cents for every $1 earned by their male colleague” is a direct contradiction of the principle of “equal pay for work of equal value.” The article also notes how gender segregation is a “handbrake on our economy” and exacerbates “skill shortages,” linking inequality to lower productivity.

3. SDG 10: Reduced Inequalities

   • Target 10.2: By 2030, empower and promote the social, economic and political inclusion of all, irrespective of…sex…race, ethnicity…or other status. The article highlights intersectional inequality by stating the average pay gap “stretches to nearly 40% for First Nations women,” demonstrating how gender and ethnicity combine to create greater economic exclusion.
   • Target 10.4: Adopt policies, especially…wage…policies, and progressively achieve greater equality. The call for “politicians and policymakers to grapple with these findings and find strategies and policies to deal with economic inequality” directly supports the implementation of this target.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Yes, the article provides several specific quantitative indicators that can be used to measure progress:

• Average gender pay gap: The article states that women are “typically paid 70 cents for every $1 earned by their male colleague,” which translates to a 30% average pay gap. This is a direct indicator for Target 8.5.
• Gender pay gap by ethnicity: The specific mention that the pay gap for “First Nations women” is “nearly 40%” serves as an indicator for Target 10.2, measuring inequality for a specific demographic group.
• Prevalence of pay inequality across occupations: The finding that “men are paid more than women in 98% of occupations” is a powerful indicator of the systemic nature of the problem, relevant to Target 5.1.
• Economic impact of motherhood: The statistic that “Australian women’s earnings drop by 55% in the five years after having their first child” is a quantifiable indicator of the “motherhood penalty,” relevant to Target 5.4.
• Occupational gender segregation: The data point that “only one in five Australian workers were in occupations with a relatively equal mix of men and women” and that “in about seven in 10 occupations there had been no progress on gender balance in 15 years” are clear indicators for Target 5.5.
• Pay gap in female-dominated professions: The example of female registered nurses being paid “21% less than their male peers” and male childcare workers being paid “14% more” than their female colleagues provides specific, occupation-level indicators of unequal pay for work of equal value (Target 8.5).

4. Table of SDGs, Targets, and Indicators

Source: theguardian.com