84 cents for every $1: Why indigenous workers earn less in Australia—and what to do about it
Indigenous workers in Australia earn 15.9% less per hour on average than all workers—or 84 cents for every $1 earned by non-Indigenous people—our research found.
Indigenous workers in Australia earn 15.9% less per hour compared to non-Indigenous workers, equivalent to around 84 cents for every dollar earned by their counterparts. This disparity translates to working an additional two months of the year for free or losing out on more than the employer's compulsory superannuation contributions. Aboriginal and Torres Strait Islander workers earn approximately $15,040 less annually than all Australian workers.
An analysis of 227 occupations identified the greatest pay gaps, particularly in higher-skilled roles like professionals and managers. Aboriginal and Torres Strait Islander professionals earn around 80 cents for every dollar earned by all workers, despite working similar hours. This pay gap is influenced by factors such as racial bias in hiring practices, unpaid cultural work, and inflexible workplace policies.
The largest pay gap exists between Aboriginal and Torres Strait Islander women and all men, with a 21% difference. This suggests that Indigenous identity has a more significant impact on the pay gap than gender alone. Aboriginal and Torres Strait Islander women face compounded disadvantages, including lower hourly wages, fewer opportunities in high-paying jobs, and reduced working hours.
To address this issue, the study recommends several structural solutions. Firstly, Australia's racial discrimination laws should include a "positive duty," requiring employers to proactively prevent racism, akin to the existing positive duty to prevent sexism. Secondly, employers should be obligated to regularly review recruitment, pay, and promotion practices.
Thirdly, employers should recognize and compensate cultural responsibilities, similar to how they value other workplace skills. Lastly, flexible workplace policies should account for the unique circumstances of Aboriginal and Torres Strait Islander workers, including responsibilities like kinship care and "Sorry Business." These recommendations aim to create a more equitable work environment for Indigenous workers in Australia.
Written by urgent.news from Phys.org's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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