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Australia's workforce is almost evenly split between men and women. Yet fewer than one in four Australians work in a gender-balanced occupation.

This has improved over time, but at a glacial rate. In 1990, more than half of men (52%) worked in occupations that were more than 80% male. Thirty-five years on, that figure has only declined to 41% of men.

Meanwhile, the share of women in female-dominated occupations (which are more than 60% female) has largely hovered between 60% to 65% since the mid-1990s.

This also holds true within industries. Fewer than half of all employees are in gender-balanced industries, and three of the five industries with the largest workforces - health care and social assistance, construction, and education and training - have become even more segregated since 1990.

Between 2006 and 2021, just one in five occupations became less segregated.

Why does it matter? Turns out, it's bad for workers, businesses and the economy.

As this graph shows, while most Australian industries have improved their gender balance between 1990 and 2025, one-third remain male-dominated.

Productivity and income are lower when men and women are channelled into different jobs.

Income per person is lower when women are under-represented in entrepreneurial positions and in highly-skilled occupations.

From scientific teams to company boards, international research shows innovation is higher in gender-diverse teams.

Segregation also contributes to the gender pay gap and inequality.

Nearly one-quarter of the pay gap in Australia is attributable to segregation within occupations and industries. Pay gaps are largest in the most segregated jobs. And there is some international evidence that suggests pay and prestige fall as the share of women in a role rises.

Businesses suffer when they are not drawing from the full talent pool when hiring workers. They have fewer applicants per job vacancy, which can lead to lower-quality hires or difficulty filling jobs. This makes the labour market less efficient and unemployment structurally higher.

Individuals pay a price too. People face social stigma and increased risk of harassment when working in non-traditional roles. And their ability to move between jobs as the economy changes and new opportunities emerge is restricted.

Gender segregation in Australia has proven resistant to the rapid rise in female educational attainment and the near-convergence in labour force participation rates between men and women.

That's probably because gender segregation is driven by several linked and self-reinforcing factors: education pathways and gender norms, the unequal distribution of unpaid work, workplace cultures, and low pay in feminised industries.

Read more: New study finds the gender earnings gap could be halved if we reined in the long hours often worked by men

If we are to really shift the dial on this deep-seated problem, a mix of targeted and broader economic policies will be needed, alongside buy-in from businesses, workers, and society at large.

In female-dominated industries and occupations, which tend to be low-paid, the most direct lever available to governments is pay.

Higher wages should attract more workers - male and female. The federal government has committed significant funding to wage increases for aged care and childcare workers. But it should also focus on improving their working conditions.

In male-dominated industries and occupations, improving workplace cultures should be a priority. Here, most levers are in the hands of businesses.

Improving culture requires firms to have appropriate recruitment, conduct, family, and performance-evaluation policies. Plus commitments from senior leadership to model and enforce those policies.

Australia is making progress in these areas. But there's still more work to do on reshaping gender norms.

Gender norms are not static: they change over time and can be influenced by policy settings.

There is strong evidence that more gender-equal uptake of parental leave leads to more gender-equal attitudes among adults and their children, and a more equal distribution of unpaid work over time.

Too many men do not take the leave on offer, both from the government and, increasingly, from their employer. Changing that will require changing societal attitudes, to normalise men providing care.

The government should consider extending the use-it-or-lose-it component of paid parental leave from four weeks to six, to encourage more men to take it.

The gender imbalance of occupations and industries is slow to change, but it is not immutable.

International variation in which gender dominates a particular job suggests that existing patterns need not be permanent. Indeed, occupations can reach a tipping point, after which improvement in the gender balance rapidly accelerates.

Progress leads to more progress, as people respond to policies and cultures change.

The job aspirations of teenage boys and girls reflect the current gender balance of the labour market. But over time, and with concerted effort, we can shift what future generations think is possible.