Unexplained ethnic pay gap raises concern
There is a big pay gap along ethnic lines in New Zealand and most of it can’t be explained by qualifications and other factors, according to research out today.
For every $1 a Pākehā man earns, a Pā kehā woman earns 89c; an Asian man and a Māori man earn 86c; an Asian woman earns 83c; a Pacific man and a Mā ori woman earn 81c; and a Pacific woman earns 75c, according to non-profit organisation MindtheGap.
The new report for the Pacific Pay Gap Inquiry showed that 73% of the pay gap for Pacific males and 61% of the pay gap for Pacific females could not be explained even after accounting for differences in occupation and educational achievement.
Equal Employment Opportunities commissioner Saunoamaali’i Karanina Sumeo said the research was the first time the pay gap had been looked at closely in terms of ethnicity, and the findings were stark.
‘‘It’s a sad finding for New Zealand . . . it makes it really urgent that we address it.’’
Sumeo was surprised at how much of the gap was unexplained. The research showed most of the pay gap was at least partly due to invisible barriers such as racism, unconscious bias and workplace discriminatory practices.
Along with racial discrimination, sexism was also a factor, as was a lack of recognition for overseas experience and qualifications.
A lack of opportunity to upskill at work for higher pay was part of the problem, as was a lack of access to social networks, she said.
‘‘If you’ve got to rush home from one job so the next parent can go to work you’re not really having that ability to socialise, and network, so you miss out on that other informal avenue to get opportunities for employment.’’
Lack of pay transparency, and businesses breaking the law by not offering employment contracts also contributed.
The research showed that only 7% of Pacific were in manager roles, compared with 20% of Pākehā men, and 15% of Asian men and Pā kehā women. For Mā ori, 12% of men and 11% of women were in manager roles, and for Asian women it was 9%.
The full report based on the inquiry’s findings will be released later this year.