Opinions // Economics
February 2022
Of 3’s, and Other Important Labour Market Numbers
Will an unemployment rate with a 3 in front it, ensure that we also get wage growth with a 3 in front of it? Don’t count on it.
CPI Numbers Don’t Tell the Whole Story
With the rise in inflation as Australia’s economy struggles with re-opening and supply chain problems, each release of the Consumer Price Index (CPI) generates headlines and political debate. But the CPI doesn’t necessarily provide a full reading of price pressures: depending on who you are, and what you buy. In this column published in the Guardian Australia, Greg Jericho (new policy director for the Centre for Future Work) dissects several measurement issues related to this most-watched economic statistic.
January 2022
Healthy humans drive the economy: we’re now witnessing one of the worst public policy failures in Australia’s history
Australians are getting a stark reminder about how value is actually created in an economy, and how supply chains truly work.
November 2021
The great (gendered) resignation is not what you think. It’s worse
The great resignation is apparently upon us — workers are walking away from bad jobs. But in Australia, the exodus of women from the workforce says more about structural barriers than worker empowerment.
July 2021
If You Thought Employers Were Exploiting Workers With Too Many Insecure Jobs Before The Pandemic, Wait Till You See The Figures Now
Australia paid a big price for the over reliance on insecure jobs prior to the pandemic. But as our economy recovers, insecure jobs account for about two out of every three new positions. In this commentary, originally published on New Matilda, Economist Dan Nahum explains why that’s a very bad thing – especially in front-line, human services roles. In the context of COVID-19, the effects of insecure work in these sectors, in particular, reverberate across the whole community with dangerous and tragic consequences.
June 2021
Why is Job Quality Worsening?
Over time, insecure work has become more prevalent in the Australian economy. Key drivers of worsening job quality include: decades of economic policies which constructed unemployment “buffers”; insufficient paid work available for all who need it; reductions in the level of unemployment benefits to below-poverty levels, collapse in collective bargaining coverage, and failure to regulate insecure work.
April 2021
Rage & Optimism as an Activist Economist
Crikey is reclaiming the “angry woman” trope in a new column about what women achieve through rage, passion and determination. In this inspiring and poetic feature with our Senior Economist Alison Pennington, Alison explains how rage about how the economy works (or doesn’t work) powers her forceful work as an activist economist.
Expansion of Employer Power to Use Casual Work Hurts Women Most
As women lead mobilisations against workplace gendered violence, the federal government passed legislation expanding employer power to use insecure, casual labour in its IR bill – laws that will disproportionately impact the pay and security of women’s jobs.
March 2021
Wrecking superannuation, not protecting women, is the government’s priority
It doesn’t matter what the crisis, when it comes to the Morrison government the message is clear: you’re on your own.
January 2021
Migrant Workers Abandoned in the COVID Recovery
COVID continues to sweep Europe and the US, while Australia celebrates near-elimination of community transmission. But Australia’s public health success has not come without significant economic and social hardship for large sections of our community – especially migrant workers. Thousands of migrant workers were pulled off the job to stop the spread of COVID-19, and excluded from key government income support programs including JobSeeker and JobKeeper. Temporary migrant workers are still left without access to Medicare.
Yes, lockdowns mean lost jobs. But data shows that not locking down causes much more economic damage
With new stay-at-home orders covering many parts of the province, Ontarians are settling in for a month (at least) of daunting isolation. Restrictions are also being tightened in other provinces to slow the spread of COVID-19, until vaccines can turn the tide of the pandemic. Despite accelerating infection and overflowing hospitals, many oppose the new restrictions on
December 2020
IR Bill Will Cut Wages & Accelerate Precarity
The Morrison government has proposed sweeping changes to labour laws that will expand unilateral employer power to cut wages and freely deploy casual labour. Together, the Coalition’s proposed changes will accelerate the incidence of insecure work, undermine genuine collective bargaining, and suppress wages growth. Impacts will be felt across the entire workforce – casual and permanent workers alike.
Porter IR Bill a Wish List for Business
Industrial Relations Minister Christian Porter tabled an omnibus bill on 9 December containing multiple amendments to Australia’s labour laws, including the Fair Work Act. In theory, the bill is the outcome of a series of IR reform discussions the government launched during the early months of the COVID-19 pandemic. At the time it heralded a new spirt of cooperation between business, unions, and the government — but that spirit didn’t last long. The bill accepts numerous business demands that will further liberalise casual work, undermine genuine collective bargaining, and generally suppress wages even more than they already are.
November 2020
The Pandemic is Our Clarion Call to Rebuild Good Jobs
Victorians emerging from lockdowns now confront Australia’s harsh COVID-era work reality marked by more insecure jobs, mass unemployment, and long-term work at the kitchen table.
July 2020
Victorian Inquiry Offers Novel Routes to Regulating Gig Work
Findings from a landmark inquiry commissioned by the Andrews Victorian government into the work conditions in the “on demand” (gig) economy have been released. The report’s findings are timely with COVID-era unemployment surging and an expanding pool of vulnerable workers relying on “gig” work to meet living costs.
June 2020
Austerity Threatens Women’s Access to Paid Work
Women have suffered the worst labour market impacts since the shutdowns. Gender-unequal impacts have been due to women’s greater exposure to customer-facing industries shut down first by public health orders, higher employment intensity in insecure and part-time positions, and an increased caring burden unmet by the state. But instead of providing countervailing support, the federal government is accelerating women’s work crisis.
Unleashing a National Reconstruction Plan Fit for Our Era
Our nation is confronting the most significant economic challenge in nearly a century. Australia’s own experience of long-term, sustained public investment during post-war reconstruction shows direct tools of government planning and investment will be essential to our recovery today. Yet Scott Morrison continues to pretend his hands are tied: “if there’s no business, there’s no jobs, there’s no income, there’s nothing.”
May 2020
Australia Needs Universal Paid Sick Leave To Get Through the Pandemic
Chief Medical Officer Brendan Murphy recently issued a directive that going to work with the ‘sniffles’ is ‘off the agenda for every Australian in the foreseeable future.’ But with millions of workers without access to paid sick leave, government plans to lift restrictions on economic activity could risk dangerous and costly outbreaks.
April 2020
Pandemic Shows Australia Needs Domestic Manufacturing
Disruptions in global supplies of essential medical equipment have served as a wake-up call to Australians that it is always vital for a country to retain the capacity to domestically produce manufactured products that may be crucial to national security and well-being.
March 2020
Responding to the Economic Emergency
The scale and scope of the economic downturn caused by COVID-19 will be unprecedented in our lifetimes. Mainstream economists have belatedly realised the pandemic will cause an economic downturn, but they are not yet appreciating the size of that downturn, nor the unconventional responses that will be required. Simply calling for government “stimulus” is sadly inadequate, given the complete shut-down of work and production that is occurring in many sectors of the economy. The task is no longer supporting markets with incremental “pump-priming.” What’s needed is a war-like effort, led by government, to mobilise every possible resource to protect Australians’ health and livelihoods. Money is not an object – and this epic effort should not be held back by normal acquiescence to private-sector priorities and decisions.
Financialisation and the Productivity Slowdown
There has been much discussion in recent months about the apparent slowdown in Australian productivity growth. Rather than dredging up the usual wish-list of the business community (more deregulation, more privatisation, and more deunionisation), it’s time to look at the deeper, structural factors behind stagnant productivity. In this commentary, Dr. Anis Chowdhury, Associate of the Centre for Future Work, looks to the perverse role of our overdeveloped financial sector in slowing down productivity-enhancing investment and innovation.
February 2020
Meet the New Boss, Same as the Old Boss
In a new guest commentary for the journal Canadian Dimension, Centre for Future Work Director Jim Stanford argues that existing power relationships in the labour market are being reinforced, more than disrupted, by the process of technological change.
September 2019
Paid Parental Leave for Fathers Advances Parental Equality
Rising pressure on individuals and families to meet their caring needs is the “human face” of decline in workplace protections and bargaining power that has gathered pace since 2013. Meanwhile, the need for fathers and male spouses to take on more caring and household labour is routinely discussed in the public domain. But how have Australia’s work/care policies worked to support a redistribution of caring and household labour to males and fathers?
August 2019
Stuck-in-the-Mud’ Workers Not to Blame for Wage Stagnation
The Commonwealth Treasury raised eyebrows recently with a new research report that seemed to pin the blame for record-weak wage increases on workers’ reluctance to quit their jobs in search of better-paying alternatives. The report was presented to the recent conference of the Economic Society of Australia, and elicited gleeful headlines in conservative newspapers blaming “stubborn” workers for their own poor wage results.
May 2019
Where To Now for Union Campaign? Workplace Express
The unexpected results of the 2019 Commonwealth election have sparked many commentaries regarding what happened, and why. This article, reprinted with permission from Workplace Express, considers the role of the major #ChangeTheRules campaign mobilised by Australian unions in the lead-up to the election – and ponders the movement’s next steps in the continuing debate over labour market policies and industrial relations. It cites both our Economist Alison Pennington, and our Director Jim Stanford, as well as our previous research on the erosion of collective bargaining in Australia.
Minimum Wage to Rise 3% for 2019-20
The Fair Work Commission has announced a 3% hike in Australia’s national Minimum Wage, effective July 1, taking it to $19.49 per hour. That increase is lower than the 3.5% increase implemented last year.
Denying Wages Crisis Won’t Make It Go Away
As the great novelist Isaac Asimov wrote, “The easiest way to solve a problem is to deny it exists.” Business leaders and sympathetic commentators have adopted that advice with gusto, during current public debates over the unprecedented weakness of Australian wages.
April 2019
Jobs and a Living Wage
Australians tend to bring a fair bit of swagger to international comparisons of economic performance. After all, Australia has experienced twenty-eight consecutive years of economic growth without a recession—a record for industrial countries. We are the ‘lucky country’, with one of the highest material living standards in the world, a wealth of natural resources, and a ‘no worries’ ability to withstand global economic shocks.
January 2019
Job Creation Record Contradicts Tax-Cut Ideology
The Australian Bureau of Statistics released its detailed biennial survey of employment arrangements this week (Catalogue 6306.0, “Employee Earnings and Hours“). Once every two years, it takes a deeper dive into various aspects of work life. Buried deep in the dozens of statistical tables was a very surprising breakdown of employment by size of workplace.
The REAL Diary of an Uber Driver
ABC recently announced plans for a new 6-part television drama called “Diary of an Uber Driver.” The Centre for Future Work’s Director Jim Stanford wonders if this drama will truly constitute insightful drama – or whether it will serve to whitewash the labour practices of a controversial, exploitive industry.
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