Labour markets/ Workforce planning

1
Labour markets/Workforce planning

• Unemployment understanding the terms

2
UNEMPLOYMENT

• Def.
• Where some people are willing and able to work,
  but are unable to find paid employment
• Fraser et al p320

3
REPORTING UNEMPLOYMENT

• ABS
• Utilises regular household surveys
• Centrelink
• Counts those registered for unemployment
  benefits
• Fraser et al p320

4
CRITERIA FOR UNEMPLOYMENT

• Aged 15
• Not employed during survey week
• Actively looked for f/t or p/t work
• Plus must fit into one of
• Available for work
• Waiting to start a new job within 4 weeks
• Waiting to be called back from stand down
• Fraser et al p320

5
TYPES OF UNEMPLOYMENT (1/5)

• Cyclical Unemployment
• (Demand-deficient unemployment) caused by a
  deficiency in the level of aggregate demand
• Fraser et al p323-4

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TYPES OF UNEMPLOYMENT (2/5)

• Non-cyclical Unemployment
• Not related to any phase in the business cycle
• Frictional Unemployment
• Results from lags, or frictions in the price
  mechanism, which is a slow down adjustment in the
  labour market
• Fraser et al p323-4

7
TYPES OF UNEMPLOYMENT (3/5)

• Structural Unemployment
• Caused by adjustment in the industrial structure
  of the economy
• Seasonal Unemployment
• Seasonal nature of production in some
  commodities, particularly primary production such
  as sheep fruit picking
• Fraser et al p323-4

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TYPES OF UNEMPLOYMENT (4/5)

• Long-term (Hard-core) Unemployment
• Unemployment of 12 months or more
• Some members of society are essentially
  unemployable because of lack of education, poor
  physical or mental abilities, or negative
  attitude to work, or even age
• Fraser et al p323-4

9
TYPES OF UNEMPLOYMENT (5/5)

• Underemployment
• When people who have p/t jobs would prefer to
  work more hours, or full time.
• Hidden Unemployment
• Official figures tend to exclude large numbers
  of people willing to work but are not actively
  seeking employment
• Fraser et al p323-4

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MEASURING UNEMPLOYMENT (1/2)

• Direct Measure Unemployment rate
• ULF-J
• UR(U/LF)x100
• Where U no. unemployed
• UR unemployment rate
• LF size of labour force
• J no. of people in jobs (employed
  persons)

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MEASURING UNEMPLOYMENT (2/2)

• Indirect Measure
• Labour Force Participation Rate
• LFPR (JPLW)/CV15
• Where LFPR labour force participation rate
• J No. people in jobs (employed)
• PLW No. looking for p/t f/t work
• CV15 civilian pop. aged over 15

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CAUSES OF UNEMPLOYMENT (1/2)

• Structural Unemployment
• Due to fundamental changes in the structure of
  labour demand specifically the kind of jobs
  that an economy offers. Most new industries are
  more capital-intensive and require sophisticated
  technological skills.
• Fraser et al p329/30

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Cyclical unemployment

• Caused by downturns in the economic activity in
  the economy
• Reduction in overseas spending
• Increase in interest rates
• Increased inflation rates
• Reduced government spending

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CAUSES OF UNEMPLOYMENT

• Social Welfare Programs??!!!
• Erosion of incentives to find new jobs quickly
  assistance with health, housing and food make the
  newly-unemployed less enthusiastic in looking for
  a job.
• Tax rates
• Fraser et al p329/30

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Government schemes which support creating jobs or
increasing skills

•       fiscal (company tax changes, investment
  incentives, child care, privatisation, export
  policies, case mgt )NB the Jobs compact was an
  attempt at active employment rather than passive
  approach to pay dole, parenting allowance to
  spouses who keep low paid jobs, incomes test to
  be modified to allow for p/t work, regional
  development

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•       monetary policy( interest rates)
•       incomes and restructuring ( labour market
  reform, enterprise bargaining, skills, promoting
  small business and export industries) Single
  parent payments
•       education and retraining policies ( job
  search, HSC changes giving more skills etc award
  changes-competencies, TAFE and private
  providers-modules, youth training etc

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How do you address Cyclical unemployment?
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How do you address Structural unemployment?
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Unemployment in disadvantaged groups
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Long term unemployed
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Weve gone from unemployment to skills shortage

• Why?

22
(No Transcript)
23
Unemployment in the local market is
extraordinarily high for youth

• Why?
• What can be done about it?

24
The government is offering overseas visas for
fruit pickers

• Comment

25
Discuss the effects of the changing level and
incidence of employment and unemployment.
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What is the effect of

• economic growth
• business cycle
• world trade and growth
• technology