The gender pay gap between men and women continues to increase despite more women finishing school and completing university degrees than men, a NSW government report shows.

Men earn about 20 per cent more on average and women working full-time earn $320 a week less than men.

Men earn about 20 per cent more than women on average and women working full-time earn $320 less than men, the NSW government report found. Credit:Erin Jonasson

The starting salary for a woman who has just finished university is also $4000 less than a man.

And while women's participation in the paid workforce is at its highest point since 1978, unemployment rates for women have overtaken those for men and are rising.