Working women key to future economic growth: bank boss

Michele Bullock says more young women are honing skills and experience for future leadership roles. (Dean Lewins/AAP PHOTOS)

Women's participation in the Australian economy has been remarkably transformed in the past 40 years but more progress is needed, the head of the central bank says.

Michele Bullock made history in 2023 when she became the first woman appointed governor of the Reserve Bank of Australia.

She joined the Reserve Bank in the mid-1980s, when barely any women were at section-head level.

Michele Bullock is the first woman to serve as governor of the Reserve Bank of Australia. (Mick Tsikas/AAP PHOTOS)

But representation at the bank has improved significantly in the past decade, with women filling 40 per cent of management roles as of June 2024.

In a speech on Thursday night at the Chief Executive Women group dinner in Melbourne, Ms Bullock said the gender pay gap remained an issue in workplaces across Australia.

However, she noted there were positive signs - particularly for younger workers.

"Participation rates for those aged 25 and under are now equal for men and women, allowing young women to build skills and experience for future leadership roles," she said.

"Given our ageing population in Australia, boosting the labour force participation of working-age women is not only desirable, but essential, for economic growth."

The gender pay gap remains an issue in workplaces across Australia, Michele Bullock says. (Julian Smith/AAP PHOTOS)

Men still outnumber women by two to one in high school and university economics, with Reserve Bank research suggesting a confidence gap is to blame.

"Female students tend to underestimate their proficiency when it comes to economics," Ms Bullock said.

She suggested developing tailored advocacy to emphasise the connections between economics and other preferred fields of study.

"Increasing the representation of female role models amongst economists, female economics teachers and female advocates for economics in the public domain could also help," she said.

Reflecting on her career trajectory and leadership journey, Ms Bullock said she had learned four key things: don't undersell yourself, don't be afraid to do something different, find trusted people to guide you, and know the teams around you are your most valued resource.

"Women have to be prepared to promote themselves even if we don't feel 100 per cent confident," she said.