Gender pay gap has dropped to its lowest since 2012

Friday, 1 September 2017

Chief Human Rights Commissioner Jackie Blue welcomes the smaller gap but says there is no excuse for a pay gap in 2017.

The gender pay gap has dropped to a five-year low, according to Statistics New Zealand.

The pay gap between men and women was 9.4 per cent in the June 2017 quarter, almost a three per cent drop from the same time last year.

Median hourly earnings from wages and salaries rose 80 cents (3.4 per cent) to $24.29 in the June quarter compared to a year earlier.

Statistics NZ labour and income statistics manager Sean Broughton said: 'The decrease from a 12 per cent gap last year is the biggest drop in the gender pay gap since the series began in 1998'.

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But for women, income rose by $1.02 (4.6 percent), the biggest annual percentage increase since the June 2007 quarter.

The recent Government deal to lift pay for aged-care workers came into effect on July 1 and was not reflected in the figures.

Median hourly income for women rose in community and personal services (4.4 percent), clerical and administration (4.1 percent), sales (2.9 percent), and machinery operator and drivers (11.1 percent).

Fantastic to see the gap trending down! Still more work to do but we're heading in the right direction. https://t.co/yBYaqvny6C

— Paula Bennett (@paulabennettmp) September 1, 2017

Community and personal services include occupations, such as personal and child carers, health workers, education aides, and hospitality workers.

Labour leader Jacinda Ardern says she wants to scrap the government's pay equity legislation.

'Three out of four of these occupation groups have a higher proportion of women in them,' Broughton said.

Human Resources Institute of New Zealand chief executive Chris Till said the fact wages for men had not increased could explain the smaller gap.

'However it may be more likely that companies are now becoming more aware of their own gender pay gaps as chartered human resources professionals will be actively looking for these during audits and organisational reviews.'

Companies were beginning to realise success wasn't necessarily built off the bottom line but by the people who work for it, he said.

'It is also worth noting that 9.4 per cent inequality is still high, unfair, unacceptable and needs sorting.'

Equal Employment Opportunities Commissioner doctor Jackie Blue said any reduction in New Zealand's gender pay gap should be celebrated.

'It's a positive result,' Blue said.

'However, this doesn't mean we should stop driving for equality through greater organisational pay gap transparency, flexible working conditions for parents, pay equity in historically female dominated industries and unconscious bias training in the workplace.'

Women's Minister Paula Bennett welcomed the smaller pay gap in a statement.

'It's fantastic to see such a significant reduction today,' she said.

'I still believe having any gender pay gap is completely unacceptable but it's moving in the right direction.'

Labour leader Jacinda Ardern said the gap reduction was 'very encouraging'.

'[There's] some explanation there around men's wages not increasing but look it's encouraging to see it moving, of course close to 10 per cent we've still got some way to go, but it's a positive direction.

'We need our mothers, our daughters, our sisters, our aunties, to be valued no matter what workforce they are in.''

In the June quarter, half of workers aged 15 years and over earned more than $959 a week from paid employment, a rise of $35 from the June 2016 quarter.

Paid employment includes both wage and salary earners and self-employed people.