Young men risk being left jobless as number of care economy jobs grows, overtaking male-dominated industries

Career choices in the post-pandemic world are providing a fascinating insight into who’s making money and who’s being left behind. And it seems women hold the balance of power when it comes to job selection and wage growth, with the care economy muscling in on the decades of dominance by the construction industry. Men are still largely employed in fields like mining and manufacturing which have not experienced pay increases to the same level as female-dominated industries, according to new research from the think tank e61 Institute. It’s a sharp turnaround from the 1980s, when men outnumbered women three to one in manufacturing — which employed 15 per cent of Australians. These days women outnumber men three to one in the care economy. While men’s earnings still generally outweigh those of women, with the gender pay gap at 11.5 per cent, e61 research economist Matt Maltman found male-dominated industries like mining and construction had posted below average wage growth since the pandemic. Manufacturing, meanwhile, had posted high wage increases but the workforce had significantly shrunk with little sign of slowing. And now, unemployment rates for men and women aged 15-34 are starting to diverge, whereas until the pandemic they had been roughly similar. For men in that age group, the jobless rate is nearing 8 per cent, compared to nearly 5 per cent for women. The research suggests much of this is attributable to the rise of the care economy, which often attracts people from “high-churn” industries like retail and hospitality, often the “first rungs” on a career ladder. “The rise of the care economy may be helping young women move up to the next rung, while young men, who may not view the care sector as a place for them to work, could be missing out,” Mr Maltman said. “More broadly, traditionally male-dominated industries may be feeling the effects of softening demand and elevated interest rates more acutely.” Since the pandemic, the care economy — which includes roles in health care and social assistance — has enjoyed the highest wage growth of all sectors. But despite the huge expansion in the sector — and expectations of more jobs as the population ages — men are not adapting to the growing availability of jobs. “This may be contributing to a rise in the disengagement of young men from work or education,” Mr Maltman said. But the research also found the proportion of women working in the care economy would drop if they chose their occupations in the same way men do, while maintaining their existing skillsets — from 9.5 per cent to 2.5 per cent — a similar proportion to men in the sector now. “Addressing the gender imbalance may be necessary to expand the potential workforce and help meet this growing demand,” Mr Maltman said. “There may be social reasons why we may want a less gender-biased care economy, and workforce generally. Upcoming wage increases in the care sector may not be sufficient to attract more men into the sector.” Mr Maltman questioned given the rise in job opportunities in the care economy, and fewer available in manufacturing, if government policy should start to focus on getting “more men to take on traditionally female-dominated roles”.