Pay win - will it be enough to stem the exodus of early childhood workers?

First published by Macquarie University

Last week the Australian Government announced a 15 per cent wage increase for many of the nation’s early childhood educators, with the Prime Minister saying, “Early educators shape lives and change lives. We can never thank them enough for what they do,  but we can make sure they are properly valued and fairly paid."

It was great news for those working in services that are eligible for the wage increase for their staff. Alongside the wage increase, the Prime Minister’s recognition of the importance of the role of educators should not be underestimated. My research, conducted with colleagues at the Macquarie School of Education, indicates that lack of public recognition plays a part in educators leaving the sector, along with unfair pay and poor work conditions.

It is also significant because until very recently, Australian Governments have not accepted a role in directly contributing to wages of educators whom they don’t employ. It is also important to recognise this increase is the result of decades of lobbying and advocacy by unions and their members, along with sector activists, stakeholders and academics, who have argued that low rates of pay in the sector are incommensurate with the skill and complexity of educators’ work.

With weekly median earnings before tax at around $1059 (compared with national average gross weekly earnings for occupations across all industries of $1593), the increase for early childhood workers amounts to around $159 a week. That is  still $300 less per week than the national average.

However, the factor that has really made the case for increased wages impossible to ignore is the widely-reported, persistent shortage of early childhood educators and teachers. In further research, my colleagues and I found thousands of educators left the sector following poor treatment during the COVID-19 pandemic. They cited financial, physical and psychological reasons for their departure. At the same time, demand for places is at record levels, but services have not been able to attract and retain adequate numbers of staff.

Not everyone is a winner

So, will these increases make a difference to the workforce shortages? Most likely yes – but not in all parts of the sector -  and not on their own. The increases only go to those working in services that are eligible to receive the federally-funded child care subsidy, but these make up 14,382 of the 17,705 that are approved to operate under the National Quality Framework.

In practice, it means that the increases will mostly apply to long day care and out-of-school hours service staff, who also make up the majority of the early childhood workforce. Family day care, in-home and some preschool educators are not included.

The increases are also likely to help close the gap between the pay of early childhood workers and school teachers. Significant numbers of early childhood teachers are lost each year to the school sector due to the difference in pay and conditions, even where qualifications are the same. For the lowest paid educators – those with Diploma and Certificate qualifications who make up 70 per cent of the workforce - it’s hard to say whether or not a 15 per cent increase will be enough to make a difference to attrition.

With weekly median earnings before tax at around $1059 (compared to national average gross weekly earnings for occupations across all industries of $1593), the increase amounts to around $159 a week. That is still more than $300 less per week than the national average.

But the wage increases are just part of a wider suite of initiatives addressing early childhood workforce challenges. The National Children’s Education and Care Workforce Strategy resulted from extensive sector and stakeholder consultation, and implementation of projects in its six focus areas are well underway. Together with work environment, these six areas address the challenges research indicates are critical to improving attraction and retention. In combination with sustained commitment to these areas then, the wage increases are likely to help make a difference for educators, and ultimately, the children and families with whom they work.

Dr Tamara Cumming is a member of The Centre for Research in Early Childhood Education (CRECE) and a senior lecturer in the  Macquarie School of Education.