Gender Segregation Is Hurting Australia’s Economy

Australia’s workforce remains heavily divided along gender lines, which limits productivity and drags down economic potential. A lack of gender diversity in key industries, like too few men in care and education or too few women in tech and mining prevents Australia from fully using its available talent.

Right now, Australia has one of the highest levels of gender job segregation among developed economies. This means men and women are still channeled into traditionally "male" and "female" sectors, despite no evidence that aptitude or interest naturally falls along gender lines. This pattern is especially clear in areas like child care and health, which are mostly staffed by women, compared to sectors like construction and mining, where men dominate.

Only a small share of the workforce operates in gender-balanced environments. Most Australians work in industries skewed towards one gender. This reflects deep-rooted social and financial factors, not individual skills. Earnings tend to be lower in jobs seen as “female” work, which partly dissuades men from entering those sectors - despite their talent potentially making a big impact there.

There are signs of change. The rise of remote work has helped many women stay connected to their fields while balancing caring responsibilities. This flexibility may be nudging more people to pursue careers based on interest and ability, rather than traditional gender expectations. Long-term, better talent allocation could help lift Australia’s flatlining productivity, especially in underperforming sectors like education and health.

Source: Australian Financial Review, ACCC, WTO