2009 Women’s Budget Statement
The Place of Women in The Economy
The state of the economy
The global economy is experiencing the worst recession since the Great Depression, which has dragged the Australian economy into recession. This contraction is expected to be milder than almost any other advanced economy and an economic recovery is expected to gather pace from early 2010. The downturn will impact significantly on women’s and men’s jobs, with employment contracting over 2009-10 and gradually growing in late 2010.
This Budget supports jobs now, and invests in the future, to ensure the economy is well placed to make the most of the global recovery and to improve women’s and men’s economic prosperity.
| Women’s labour force participation rate in Apr 2009 | 58.8 |
| Indigenous women’s labour force participation (in 2007) | 47.9 |
| Men’s labour force participation rate in Apr 2009 | 72.2 |
| Women as a proportion of the total labour force in Apr 2009 | 45.6 |
| Men as a proportion of the total labour force in Apr 2009 | 54.4 |
| Women in employment working full-time in Apr 2009 | 55.2 |
| Men in employment working full-time in Apr 2009 | 84.4 |
| Proportion of the part-time workforce that are women in Apr 2009 | 70.7 |
| Gender pay gap in Nov 2008 | 17.0 |
| Small business operators who were women in Jun 2006 | 32 |
| One-parent families headed by women | 85.1 |
| Primary carers who are women | 71.3 |
Women in the economy
On average women who work full-time earn 17 per cent less than men.1 It is estimated that an average 25 year old woman starting work today will earn $900,000 less than an equivalent 25 year old man over her working life.2 This also means that women have lower retirement savings.
Women benefit most from policies that support a balance between employment and family responsibilities. Policies that make it easier to balance paid work and family responsibilities support women’s aspirations for a career, their contribution to overall productivity and participation and the community’s need for informal care.
Employment in Australia is heavily segregated on the basis of sex. Men are more likely to be employed in construction, mining and most areas of manufacturing. Women are more likely to be employed in health, education and segments of manufacturing such as textile, clothing and footwear.3
The global recession will affect specific industries differently. Retail and manufacturing are likely to be more affected than public sector industries such as health and education.4
Supporting jobs across the economy is an important goal of the Government. As an example, the retail sector has been a beneficiary of the Government’s stimulus efforts.
Women are more likely to hold part-time and casual employment than men. Almost 71 per cent of part-time employees are women.5 The global recession may mean that women have access to fewer hours of work.
A sufficient and sustainable social security system is important for many women on low incomes to maintain economic security.
The 2009-10 Budget has been developed in the context of initiatives already announced by the Government to address the effects of the global recession.
The Government has introduced two economic stimulus packages, of which women were significant beneficiaries, including as recipients of approximately 68 per cent of lump sum payments under the first stimulus package. This package provided immediate relief to low and middle income families and down payments on long term pension reform. The second economic stimulus package, announced in February 2009, provided $42 billion for the Nation Building Economic Stimulus Plan. The plan provided a balance between immediate economic stimulus and long term investment in economic and jobs growth.
Notes
1Australian Bureau of Statistics, Average Weekly Earnings Australia November 2008, Cat. no 6302.0, average weekly ordinary time earnings of full-time employees, seasonally adjusted data.
2AMP.NATSEM, ‘She works hard for the money: Australian women and the gender divide’, AMP.NATSEM Income and Wealth Report, Issue 22, April 2009, NATSEM, Canberra, 2009.
3Australian Bureau of Statistics, Labour Force, Australia, Detailed, Quarterly, Feb 2009, Cat. no. 6291.0.55.003, Table 07. Employed persons by Occupation and Sex, ABS, Canberra, 2009.
4L Bloomfield, The effects of the global credit crisis and the Government’s economic stimulus package on women, unpublished, Australian Government Office for Women, 2008.
5
Australian Bureau of Statistics, Labour Force, Australia, Detailed, Quarterly, Feb 2009, Cat. no. 6291.0.55.003. Table 13. Employed persons by Actual hours worked, Status in employment and Sex, ABS, Canberra, 2009.
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