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 (00:00):
Ever, due for Celan gender pay gap has fallen three
percent in the year to journe. This is according to
Stats and Z Data just out. Brad Olsen is Infametrics
principle economist and with us Hello Brad.

Speaker 2 (00:10):
Good evening.

Speaker 3 (00:11):
What's caused the fall?

Speaker 2 (00:13):
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.

(00:38):
We've also seen continued larger pay 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 statistically 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

(00:59):
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 3 (01:09):
Can we relax now and stop talking about it? If
it's only five percent?

Speaker 2 (01:13):
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 is a difference, and

(01:35):
certainly when you look at some of the types of
work that's done, it does seem like we need to.

Speaker 1 (01:38):
Continueing there will always be a difference as long as
women are the ones popping out the babies and staying
home to breastfeed.

Speaker 3 (01:44):
There will always be a difference, won't.

Speaker 2 (01:46):
There 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 that. 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

(02:07):
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 3 (02:15):
Okay, Brad, Thank you so much. Brad Olson, Infametrics Principal economist.

Speaker 2 (02:19):
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