Research // Economics
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Economics
- Banking & Finance
- Employment & Unemployment
- Future of Work
- Gender at Work
- Gig Economy
- Industry & Sector Policies
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- Labour Standards & Workers' Rights
- Macroeconomics
- Population & Migration
- Public Sector, Procurement & Privatisation
- Retirement
- Science & Technology
- Social Security & Welfare
- Tax, Spending & the Budget
- Unions & Collective Bargaining
- Wages & Entitlements
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November 2020
Work and Life in a Pandemic
2020 marks the twelfth annual Go Home on Time Day, an initiative of the Centre for Future Work at the Australia Institute that shines a spotlight on overwork among Australians, including excessive overtime that is often unpaid.
Rebooting Australian Aluminium
A new report from the Centre for Future Work highlights the continuing economic importance of Alcan’s aluminium smelter in Portland, VIC, and discusses the potential of new renewable energy technologies to underpin the facility’s rejuvenation and long-term viability.
The Choices We Make
New research by the Australia Institute’s Centre for Future Work analyses the economic effects of COVID-19 on Tasmania, and suggests how Tasmania can ‘build back better’ out of the COVID-19 crisis, making key recommendations to help Tasmania avoid the mistakes made at the Federal level. Ahead of Tasmania’s State Budget, set to be delivered on 12 November 2020, in this new report the Centre for Future Work has explored what the shape of Tasmania’s economy could look like, and how it can recover and reconstruct after this pandemic.
October 2020
Public Service in Challenging Times
In times of crisis, governments have a responsibility to their citizens to maintain and expand their role in the economy – for both economic and social reasons. This responsibility has never been clearer than during the current COVID-19 pandemic, and its associated economic downturn. Australians are counting on their governments to protect them from the pandemic, support them through the resulting recession, and play a leading role in rebuilding a stronger, healthy society in the aftermath of this unprecedented catastrophe.
September 2020
Pay Equity in Community Services
The failure of the Commonwealth to confirm that it will maintain funding for community service organisations could threaten up to 12,000 jobs in that sector, at a moment when those services are critical to Australia’s pandemic-damaged economy. That’s the conclusion of new research on the economic importance of Commonwealth pay equity funding, conducted by the
August 2020
Technology, Standards and Democracy
Workers in most industries and occupations worry about the effects of accelerating technological change on their employment security and prospects. New digital technologies are being applied to an increasingly diverse and complex array of tasks and jobs – including artificial intelligence and machine learning technologies which can exercise judgment and decision-making powers. Some studies suggest that as many as half of all jobs may be highly vulnerable to automation and computerisation in coming decades. The NSW Legislative Council has established a Select Committee to examine the impact of technological and other change on the future of work in NSW. The Centre for Future Work has lodged a submission.
The Robots are NOT Coming
Startling new research from the Centre for Future Work has shown that Australia’s economy is now regressing in its use of new technology, with negative implications for productivity, incomes, and job quality.
An Investment in Productivity and Inclusion
The COVID-19 pandemic has ushered in an era of unprecedented disruption and transition. Increased public investment in the skills and earning capabilities of Australians will be critical to our post-pandemic recovery.
July 2020
A Fair Share for Australian Manufacturing
New research from the Centre for Future Work reveals that Australia ranks last among all OECD countries for manufacturing self-sufficiency. The COVID-19 pandemic has reminded Australians of the importance of being able to manufacture a full range of essential equipment and supplies; and the COVID recession has created a large economic void that a revitalised manufacturing sector could help to fill in coming years.
June 2020
Participating in growth: Free childcare and increased participation
The provision of free childcare provides the rarest of economic policy opportunities – it’s both an effective form of fiscal stimulus in the short term and has the capacity to boost the long-term participation rate and, in turn, the long run rate of economic growth.
May 2020
Powering Onwards
With disruptions in international supply chains for essential products (like medical equipment and supplies) disrupted in the current COVID pandemic, Australians have a new appreciation for the importance of retaining a flexible, high-quality, domestic manufacturing capacity. And the ongoing transformation of Australia’s energy industry, with rapid expansion of renewable energy sources, would add momentum to the renaissance of Australian manufacturing.
April 2020
Log of Extraordinary IR Measures During COVID-19 Shutdowns
COVID-19 containment measures have suspended large sections of the economy. Governments have committed over $220 billion in income supports to workers and firms. The $130 billion JobKeeper wage subsidy scheme is the most extensive “shock absorber” (with worrying exclusions of many casual and migrant workers). With the scheme now in place, assessment of the government’s COVID-19 measures is now shifting to implementation. This includes effects on the laws and regulations governing wages and how businesses and employees (and their unions) interact to determine the terms and conditions of employment.
Working From Home: Opportunities and Risks
With many regular workplaces shut down to ‘flatten the curve’ of COVID-19, millions of Australians are now shifting their work to home. Home work has great potential to cushion the economic blow of the pandemic: allowing many to keep working and earning an income, and many firms and industries to continue at least partial production. But there are also many challenges and risks associated with this major shift in work patterns. Much of the increase in home work will likely become permanent, even after the immediate health emergency passes. That makes it crucial to ‘get home work right’: providing home workers with appropriate support and protections, and preventing abuse and exploitation as home work becomes more common.
Polling – Casual workers and the wage subsidy
The Commonwealth government’s proposed JobKeeper wage subsidy scheme represents an important and promising response to the COVID-19 shutdown of several key sectors of Australia’s economy. The scheme would support an estimated $130 billion worth of wage payments over the coming 6 months, keeping millions of Australians in jobs even if their employers experience major revenue losses from the restrictions that have been imposed on activity, mobility, and work during the pandemic.
March 2020
Submission to the 2020 annual wage review
The Centre for Future Work has made a submission to the 2020 annual wage review conducted by the Fair Work Commission. The submission compiles evidence showing that the annual minimum wage adjustments (which flow through into wages specified in the Modern Awards, as well as some enterprise agreements and individual contracts) have played a more important role in recent years in supporting the overall level of wage growth in Australia’s labour market. Without relatively strong minimum wage increases since 2017 (of 3% or higher for three consecutive years), Australian wage growth would still be languishing at all-time record lows of under 2% per year.
In this context, the Centre argued it is vital the Commission proceed with a normal, healthy minimum wage increase for 1 July, 2020, with full flow-through into Award wages. Otherwise wage growth will slump significantly (to an estimated 0.7%, or even lower), heightening the risk of economy-wide deflation.
The Same Mistake Twice
New research from the Australia Institute’s Centre for Future Work reveals the consequences of freezing public service pay, both for public sector workers and for the broader economy.
Catalogue of International Initiatives to Support Workers through COVID-19
The Australian government has pushed back against introducing needed measures to support workers in casual, self-employed, or gig positions during the unprecedented labour market turmoil resulting from the COVID-19 pandemic. Other countries, however, are moving quickly with unprecedented measures to support jobs and incomes for all workers – including those in non-standard employment – to ensure they can take necessary time away from work, and do not lose their livelihoods as a result of the virus. We have assembled a catalogue of international initiatives aimed at achieving these dual outcomes.
Gender Inequality in Australia’s Labour Market: A Factbook
While women have made some progress in closing the wage gap and other dimensions of gender inequality in Australia, they still face daunting and persistent barriers to their full participation and compensation in Australia’s economy.
That’s the conclusion from a new factbook on gender economic inequality in Australia, released by the Centre for Future Work to coincide with International Women’s Day on 8 March.
February 2020
The Long-Term Consequences of Wage Freezes for Real Wages, Lifetime Earnings, and Superannuation
New research from the Centre for Future Work has dramatised the lasting consequences for workers’ lifetime incomes – even after they retire – of wage freezes.
A wage freeze is often described as a “temporary sacrifice,” that supposedly ends once normal annual wage increments are restored. However, this report confirms that the legacy of even a temporary pay freeze is a permanent reduction in lifetime incomes and superannuation, which can easily ultimately result in hundreds of thousands of dollars of lost income. These long-term effects are illustrated with reference to a real-world example: an 18-month pay freeze imposed on workers at Jetstar in 2014-2016.
December 2019
Needle in a Haystack
The latest economic statistics have confirmed that Australia’s economy is barely limping along – with quarterly GDP growth of just 0.4%. One of the weakest spots in the report was consumer spending, which recorded its weakest performance since December 2008 (amidst the worst days of the Global Financial Crisis). This was despite the supposed benefit of recent Commonwealth government tax cuts in boosting disposable income and stimulating more spending.
Analysis from Dr. Jim Stanford shows that the tax cut is in fact completely invisible in the macroeconomic data.
November 2019
Precarity and Job Instability on the Frontlines of NDIS Support Work
The national roll-out of the NDIS holds the prospect of a significant enhancement in both the resources allocated to disability services in Australia, and the autonomy and flexibility of service delivery for people with disability. But it also constitutes an enormous logistical and organisational challenge. And the market-based service delivery model built into the NDIS is exacerbating those challenges, by unleashing a widespread fragmentation and casualisation of work in disability services.
Excessive Hours and Unpaid Overtime: 2019 Update
New research from The Australia Institute’s Centre for Future Work estimates that Australian workers are currently working an average of 4.6 hours of unpaid overtime each week, which translates to 6 weeks of full time work without pay, per employee, per year – with an annual worth of $81.5 billion for Australian employers.
The Relationship Between Superannuation Contributions and Wages in Australia
New research from the Centre for Future Work shows that scheduled increases in employers’ minimum statutory superannuation contributions would have no negative effects on future wage growth, and that Australia’s economy can afford both higher wages and higher employer contributions to superannuation.
Tolerate Unemployment, but Blame the Unemployed
For the last generation macroeconomic policy in Australia has been based on the assumption that unemployment must be maintained at a certain minimum level in order to restrain wages and prevent an outbreak of accelerating inflation. Now, after six years of record-low wage growth – which weakened even further in the latest ABS wage statistics – it is time for that policy to be abandoned.
Vital Signs
The Centre for Future Work has partnered with HESTA, the industry super fund for workers in health care and community services, to prepare a comprehensive report on the economic and social status of women in Australia today. The report shows that while progress has been made in some key areas, women continue to confront systematic barriers to their full participation in paid work, fair pay, retirement security, safety, and recognition.
October 2019
Collective Bargaining “Reform”
Coalition leaders hardly mentioned industrial relations topics during the recent federal election campaign, but now that the party is back in power, an aggressive and wide-ranging agenda for changing Australia’s labour laws has been quickly assembled—with the enthusiastic backing of business lobbyists.
The Future of Work for Australian Graduates
The Centre for Future Work has released a major new report documenting the new challenges faced by Australian university graduates in finding jobs that are stable, rewarding, and utilise their newly-developed skills. The report was prepared in conjunction with Graduate Careers Australia.
Messing With Success
The Centre for Future Work has released new research estimating the negative impacts on wages and spending power of the Victoria government’s proposed 2% cap on wage increases for the state’s large public sector workforce.
September 2019
Submission to the Senate Standing Committee on Education and Employment
Despite its deafening silence on industrial relations issues during the recent election, the re-elected Coalition government is charging ahead with an aggressive plan to change Australia’s labour laws. And business lobbyists are lining up to endorse its direction. First out of the gate is a plan to amend the Fair Work Act, in the cynically mis-named “Ensuring Integrity” bill, to introduce harsh new sanctions on unions and union officials.
August 2019
Unemployment and the Newstart Allowance
Australia’s Newstart benefit hasn’t been increased in real terms in a generation, and pressure is growing on the Commonwealth government to address this inequity and raise the rate. Even RBA Governor Philip Lowe has indicated that better Newstart benefits would stimulate consumer spending and support the economy.