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Australian women are leaving the workforce earlier than their global peers due to a “complex web of systemic issues”, a research report has found.
Almost a third (31 per cent) of Australian women expect to retire early, compared to the global average of 21 per cent, a report by business improvement and standards company BSI has found.
The report argued that this trend has been driven by a “complex web of systemic issues” rather than personal preferences.
“Too many women are still hitting the Second Glass Ceiling and leaving the workforce prematurely, not by choice but due to persistent structural barriers,” Charlene Loo, ANZ managing director at BSI, said.
“Policymakers and employers can fast-track change by proactively removing barriers to the retention of experienced women, such as financial inequalities and support for those seeking to balance health issues and family life with work.”
Caregiving responsibilities, pay parity concerns, and menopause are among the top issues causing Australian women to exit the workforce early at comparatively high rates, the report found.
Over two-thirds (69 per cent) of women said that pay parity with male colleagues would help them remain in the workforce for longer, while 14 per cent said that pay imbalances had prompted them to leave work earlier than they otherwise would have.
A majority of respondents (81 per cent) said that flexibility was essential to keeping women in the workforce, but only 41 per cent were optimistic that the next generation of women would receive adequate flexibility to stay in the workforce as long as men.
Furthermore, almost a quarter (23 per cent) of Australian women said that caregiving responsibilities had been a barrier to remaining in the workforce, compared to 21 per cent globally, BSI found.
The gender gap in unpaid care work remains high in Australia compared to other OECD countries, and childcare responsibilities are also a significant factor causing women to work part time.
Only 36 per cent of BSI’s respondents believed that unpaid care would be shared equally between men and women in the future.
Women were also “unequivocal” that improved support for working mothers and fathers could help them stay in the workforce for longer, the report found.
A majority (80 per cent) of Australian women believed that improved maternity support would help them stay in the workforce for longer, while 78 per cent advocated for better paternity leave.
Health and wellbeing issues such as menopause were another barrier for women, but flexible work policies could enable them to avoid taking time off, minimising workplace disruption.
“Women who reported experiencing menopause, difficult pregnancies or mental health challenges said that working flexibly enabled them to remain productive,” the report read.
The report found that 12 per cent of Australian women who experienced menopause had taken time off for it, while 16 per cent worked flexibly or made other adjustments to enable them to continue working.
Kate Field, global health lead at BSI, said that businesses that provided women with solid formal and informal support would see dividends in terms of productivity and worker retention.
“Adaptable arrangements that support wellbeing through pregnancy, fertility, menopause, and beyond are critical at a time when concerns about productivity and absenteeism are significant,” she said.
“Our research shows that a compassionate culture isn’t just good for people, it’s good for business.”
