Women have made important gains in the Australian labour market, but the gender pay gap persists. The puzzle is not only why women’s progress has stalled but also whether new inequalities are emerging since the global financial crisis. This research considers these puzzles within the public sector. Contrary to expectations, the gender pay gap appeared to narrow since the onset of the GFC. By moving beyond simple analysis, the research demonstrates that the narrowing of the gender pay gap was due to some worsening in the position of executives and men, rather than progress towards gender equality for women. The findings are a caution against using gender pay gap trends in a sector without reference to the broader sectoral context.