In 2024 we saw some welcome developments for working women, led by government reforms.

Benefits from these changes will continue in 2025. However, this year, technological, social and political changes may challenge working women’s economic security and threaten progress
towards gender equality at work Here’s our list of five areas we think will impact on women workers’ economic security in 2025.

1. AI and the digital transformation of workplaces

2024 was the year artificial intelligence really started making its presence felt in Australian workplaces. The take up of AI is likely to accelerate in 2025. Alongside benefits from innovation there are some significant risks for workers, including in sectors dominated by women.

Job displacement is likely. Some new jobs will be created but job loss and casualisation are big risks for workers unless active effort goes into planning, training and support. In numerical terms, the greatest displacements are expected to be in retail trade, administrative and support services, professional, scientific and technical services and health care and social assistance, all female-dominated sectors.

Other risks are to job quality, as algorithmic management spreads from app-driven gig work into traditional workplaces. Assisted by electronic surveillance, AI is being used in selection and recruitment of staff, allocation and direction of work, and evaluation of performance of workers.

We are already seeing negative impacts like discrimination in selection, loss of autonomy for workers, and work intensification from algorithm-driven processes in various industries. 2025 is the year when it will be decided what rules we want around AI and who will benefit from AI innovation. Consultation with workers will be vital to good policy and law making

2. Closing the gender pay gap

The gender pay gap has slowly been closing in Australia. The gender gap in total remuneration in larger workplaces (with over 100 employees) is nearly 22%.

2025 is likely to see further closing of the pay gap as a result of wage increases in some lower paid female-dominated industries. Final pay increases for aged care workers come through in 2025.

Following recent reforms to the Fair Work Act (FWA), a review of wage rates in other female-dominated awards is underway. New cases to address gender undervaluation of work are before the Fair Work Commission (FWC), including for nurses and midwives.

Early childhood education and care workers will also receive pay increases of up to 15% this year, because of a new agreement made through multi-employer bargaining.

In total, hundreds of thousands of women workers and their families will benefit from the pay increases already awarded in care sectors. The Commonwealth Government’s preparedness to fund these pay increases has been critical, and continuing commitment will be essential to further narrowing the gender pay gap.

3. Work, care and flexibility

Some large corporations are winding back working from home arrangements for their employees. In 2025 we may see other employers follow their lead. This week the Opposition Leader Peter Dutton announced a coalition government would stop public servants working from home.

Working from home has supported better work-life balance for many people. This is especially so for workers with parenting and other care responsibilities. These arrangements also have productivity benefits for workplaces.

Despite the recent moves by some employers, we think it unlikely 2025 will see a widespread return to five days in the office. Work being done by the FWC to develop a working from home clause for industrial awards should help employers and employees manage this flexible work practice.

A formal Right to Disconnect – designed to limit contact from work outside work hours – and new strengthened rights to flexible work both came into effect in 2024. In 2025 we should see reductions in overwork and unpaid overtime, and greater access to flexible work, as these provisions are used by workers more frequently. There are already some signs that the Right to Disconnect may be shifting work cultures in a positive direction.

Many part-time hours jobs are made insecure by lack of certainty and predictability of working time (and income). This is particularly problematic for workers with caring responsibilities. In 2025 there are new options for casuals to convert to more stable permanent employment. The FWC will also be looking at ways to tackle the problems of very short hours work and irregular rostering that undermine workers’ economic security in many feminised industries.

Changes to childcare subsidy arrangements made in February (and taking effect in 2026) abolish the parental “activity test” that was a barrier to lower-income families. The changes provide all families with an entitlement to at least three days a week of subsidised early childhood education and care (ECEC), bringing Australia a step closer to having a universal ECEC system.

4. Young women’s economic security

Economic insecurity for young women, whilst not a new problem, is potentially a new frontier for urgent action in 2025.

Stagnation in real wage growth affecting most workers, has been particularly bad for young women. Research shows young women are feeling more stressed and overwhelmed by finances and money than their male counterparts and they are less likely to be able to raise funds in an emergency. They are more likely to have a debt to a ‘buy now pay later’ scheme. In June 2025,
new laws will place greater scrutiny on these deferred payments schemes. However, further action will be needed, including to address the targeting of young women by the schemes.

In 2025 we hope to see more action to limit the negative impacts of increases in university fees, which have outstripped inflation. Debt accrued through tertiary education is a significant burden for many young people and 60% of those with an outstanding HECS debt are women.

Annual indexation of HECS debts impacts disproportionately as the gender gap in hourly, annual, and life-time earnings means women’s debts are paid off slower and grow faster.

A one-off reduction of 20% in all outstanding HECS debt to be applied in July 2025 will be particularly helpful to women. Fee-free tertiary education may not be on the agenda for 2025, but we hope to see further action to limit indexation.

5. Diversity, equality and inclusion in workplaces

President Trump’s campaign to stamp out diversity, equity and inclusion (DEI) policies in the USA may have reverberations in Australia in 2025.

Internationally, some large companies have abandoned their DEI programs following Trump’s move. To date, some large Australian corporates have reaffirmed their ongoing commitment to
diversity and inclusion, but there are signs commitment may be weakening.

Opposition leader Peter Dutton has made it clear he is not supportive of these programs. This is concerning given most of the positive developments for women at work in Australia in the past year – and the promise of further progress in 2025 – depend on commitment and action by the Australian government.