Females in the labour force

IBISWorld forecasts the number of females in the labour force to climb by 2.1% in 2025-26, to average 7.38 million people. Increases in the female population aged between 15 and 45, driven by natural population growth and net migration, are expected to be key drivers of this trend. Growth in the number of women aged between 15 and 45 is anticipated to outpace that of the overall population during the year, resulting in the proportion of the labour force that is females climbing during 2025-26.

The number of females in the labour force has expanded over the past years as the government and businesses have continued to address gender equality in the workforce. According to the Federal Government's 2025 Status of Women Report Card, the gender pay gap has fallen to 11.9% in November 2024, marking the lowest level on record. This is down from 18.6% in November 2014. The increasing trend of employers providing paid parental leave, which supports workers with economic stability and career continuity, has contributed to the retention of female employees. Concerns about the rising cost of living represent another factor that is expanding the female labour force. The recent cost-of-living crisis prompts mothers with young children to re-enter the labour force quickly, hoping that a second income stream will help alleviate financial pressures. Two incomes per household are now considered necessary, especially when trying to purchase a house in Australia's larger capital cities.

Government policies supported female participation. In 2024, the Federal Government announced an expansion of Paid Parental Leave to 26 weeks by 2026 and introduced superannuation contributions on government-funded parental leave from July 2025, helping to address a key barrier to women's workforce participation.

Growth in the female population aged between 15 and 45 has expanded the pool of women entering the workforce, with the number of females in the labour force climbing every year from 2020-21 to 2025-26. The long-term trend of women making up a larger share of the labour force has continued, with their share rising from 47.3% in 2020–21 to a record 47.9% in 2025–26. IBISWorld forecasts the number of females in the labour force to hike by a compound annual rate of 1.6% through the end of 2025-26.