Shared from the 6/15/2020 Financial Review eEdition

Recovery ‘once in a generation’ chance to fix gender equity

The economic recovery from the coronavirus pandemic is a once-ina-generation opportunity to fix key structural obstacles to women’s participation in the workforce, including those posed by the childcare and industrial relations systems, a research paper says.

The research, led by eSafety Commissioner Julie Inman Grant and other leading women, has been presented to the government. It says the economic recovery will be ‘‘fastest and most successful if it leverages the labour potential of the whole population’’.

The McKinsey Global Institute recently estimated Australia could increase the size of its economy by 12 per cent (or $225 billion) by 2025 by accelerating progress towards gender parity.

‘‘The current period provides a oncein-a-generation opportunity to remove structural barriers to women’s full participation in the workforce, including the high effective marginal tax rate created by childcare costs and undervaluing of feminised industries,’’ the research paper says.

It also advocates tackling the ‘‘societal constraints’’ and ‘‘social scourges including the epidemic of genderbased violence and the concerning trend of poverty and homelessness among older women’’.

The paper makes 10 recommendations to help achieve change, including keeping in place the emergency measure of free childcare until September, pending an urgent review to make the system more affordable and more accessible.

‘‘Increasing the affordability of early childhood education and care boosts economic output by directly increasing women’s participation and productivity in the paid workforce,’’ it says.

‘‘The global pandemic has highlighted that early childhood education is an essential service. It has also exposed multiple vulnerabilities in Australia’s early childhood education and care arrangements, including over-reliance on unwaged labour to support the functioning of the economy, and poor remuneration of early childhood education staff.’’

The government has already unwound the free childcare, saying it will cease in mid-July and the industry given a $708 million transition package as it moves back to the original system of mean-tested subsidies for families.

The Better Decisions Better Futures report also urges the current review of the industrial relations system to examine gender imbalances in pay and participation.

‘‘In particular, reforms could clarify and improve opportunities for parttime, casual, temporary and flexible work, address conditions which impede women’s and parents’ full participation in work, and provide better mechanisms to support gender-equal pay,’’ it says.

The report urges the government, as it seeks to reduce unemployment, to ensure support and stimulus packages take into account female participation.

Due to the nature of the industries worst affected by the lockdown, a higher proportion of women (8.1 per cent) than men (6.2 per cent) lost their jobs between mid-March and mid-April. Women also suffered a greater reduction in working hours.

‘‘Recovery investment announcements have so far focused heavily on male-dominated industries, including construction,’’ the paper says, in a reference to the $688 million residential housing package.

‘‘Investment in industry recovery and job creation should include incentives and supports to recruit women, especially in traditionally maledominated sectors like mining, construction and trades.’’

‘‘Recovery in female-dominated industries most affected by COVID-19 should be prioritised, including retail trades, hospitality and the arts.’’

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