Brad Olsen: Infometrics Principal Economist on NZ's gender pay gap narrowing to record low

A build-up of industry income changes could have driven the pay gap between men and women to a historic low. 

The pay gap for the June quarter is sitting at 5.2 percent, down from the 8.2 percent seen a year ago.

It's the smallest margin seen since Stats NZ began collecting the data in 1998. 

Infometrics Principal Economist Brad Olsen says sectors like transport, IT and finance have been pushing through higher incomes for female workers. 

"We've also seen continued larger pay increases for a number of quite large female-dominated industries alike - of education and health."

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Episode Transcript

Speaker 1 (00:09):
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du for see Alan.

Speaker 2 (00:18):
Tender paygap has fallen three percent in the year to June.
This is according to Stats and z Data just out.
Brad Olsen is Informetrics principle economist and with us.

Speaker 3 (00:26):
Hello Brad, good evening.

Speaker 2 (00:28):
What's caused the fall?

Speaker 3 (00:30):
Well, I think we're seeing a few things coming through.
In general, There's been quite a number of industries that
have seen a number of higher pay numbers for female employees,
so that's been a big change. You've seen some quite
large increases across the likes of the transport sector, information
technology finances, so there have been some genuine changes there.

(00:54):
We've also seen continued larger pain increases for a number
of quite large female dominated industries, the likes of education
and health as well. Those have helped to contribute to
the fall. This is one of the most stick significant
fools we've seen in the gender pay gap, down to
five point two percent previously it was eight point two.
That is a big shift and I think that's really

(01:16):
coming through as you've seen a number of these changes
in pay over time, so it's not all of a
sudden things have changed. You've had a build up of
changes that have now started to hit the numbers.

Speaker 2 (01:25):
Can we relax now and stop talking about it if
it's only five percent?

Speaker 3 (01:29):
I don't know. I don't think anyone will be comfortable
with that now. To be fair, there's a lot of
various measures that come into the gender pay gap that
can be a bit of a blunt instrument because we
know that there are, of course differences in the type
of women are, type of work that different women are
involved with, and men as well. But at five point
two percent, it still doesn't feel comfortable given that there

(01:50):
is a difference, and certainly when you look at some
of the types of work that's done, it does seem
like we need to continue.

Speaker 2 (01:55):
Telling there will always be a difference. As long as
women are the ones popping out the babies and staying
home to breastfeed, there will always be a difference, won't.

Speaker 3 (02:02):
They well, especially because that one isn't even really considered
as well in the gender pay gap. But yes, I
don't think just because there might always be a challenge though,
that we should not address it. We've got to continue
to work on it, and given we've got some momentum here,
clearly it should be the sort of thing that we
continue to work on. One area where we haven't made
as much progress is the ethnic breakdowns of the gender

(02:23):
pay gap, and I think that's an area that we
continue to need to look at, only because clearly, if
we're doing work, everyone should be paid similarly for that
work that's done.

Speaker 2 (02:32):
Okay, Brad, thank you so much. Brad Olson, Infametrix Principle Economist.

Speaker 1 (02:36):
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