As part of Global Women’s commitment to closing the gender pay gap, our chair Dame Theresa Gattung is shining a light on the economic impacts of Aotearoa New Zealand’s pay inequity.
“Women in Aotearoa are being short-changed. They are missing out, and actually Aotearoa is missing out too,” Dame Theresa shares with the New Zealand Herald.
“Far from just being a gender issue, this is an economic advancement issue. And one we should all start taking more notice of as we look for ways to reinvigorate our economy.”
Looking at the average gender pay gap of 8.2% (according to Stats NZ’s June 2024 data) across the weeks of the year, Dame Theresa points out that women effectively began working for free on December 2 – being paid the equivalent of 21.5 days less than men. Using Stats NZ’s median weekly earnings of $1343, and 8.2% gap is the equivalent of a $110.13 weekly difference – or a gap of $229,062 over the course of 40 working years.
“Far from just being a gender issue, this is an economic advancement issue. And one we should all start taking more notice of as we look for ways to reinvigorate our economy.”
Differences in occupation, education, and working hours only explain around 20% of the gender pay gap. Systemic factors, such as conscious and unconscious bias, are harder to measure, but account for 80% of the pay gap.
“The reality is that 8.2% is also actually a somewhat crude indicator as an average of the more striking inequity that exists across different sectors and occupational groups within New Zealand – some far more pronounced than others,” says Dame Theresa.
“Ethnic pay gaps are far more pronounced as well. The gender pay gap for Māori, Pasifika, ethnic, and disabled women is significantly higher than the national average.”
The latest data shows that the pay gaps for Māori and Pasifika women have increased compared to 2023, while the overall pay gap has marginally decreased. Unemployment rates for Māori and Pasifika women now nearly double the overall rate.
“The gender pay gap for Māori, Pasifika, ethnic, and disabled women is significantly higher than the national average.”
Dame Theresa emphasises the importance of raising awareness of the gender pay gap, and calls for organisations to commit to pay transparency. With Manatū Wāhine Ministry for Women having launched the government’s Gender Pay Gap Toolkit last month, businesses throughout Aotearoa New Zealand have the opportunity to measure and understand their pay gaps.
“Measurement and understanding of the pay gaps of organisations and industries is critical if we are going to make progress,” says Dame Theresa.
“Transparency is also key, because what gets measured and shared gets actioned and stays in our focus. We need to be able to hold ourselves and each other accountable.”
Read the full story over on NZHerald.co.nz.