Measured by official employment statistics, Australia's labour market has improved in recent months: full-time employment has grown, and the official unemployment rate has fallen. But dig a little deeper, and the continuing structural weakness of the job market is more apparent. In particular, labour incomes remain unusually stagnant. In this commentary, Centre for Future Work Associate Dr. Anis Chowdhry reflects on the factors explaining slow wage growth -- and what's required to get wages growing.Read more
Our Director Jim Stanford was requested to testify before the Senate's Education and Employment References Committee on August 24, 2017 regarding the Fair Work Commission's decision to cut penalty rates for work on Sundays and public holidays in four major sectors of the economy: retail, hospitality, pharmacy, and fast food.Read more
Progressives everywhere are grappling with developing policy proposals to improve the quantity and quality of work in our economy, as part of their broader vision for building more successful and inclusive societies. To this end, the Fabians Society in NSW recently published an interesting booklet of policy proposals, to inject into debate within the Labor Party and other fora. One chapter written by Sarah Kaine (Associate Professor at UTS and a member of the Centre for Future Work's Advisory Committee) and Jim Stanford (Economist and Director of the Centre) deals head-on with the challenges facing work, and what can be done to make it better; it is reprinted below.Read more
Paradoxically, underemployment and number of hours actually worked are both on the rise in Australia.
Dr. Anis Chowdhury, Associate of the Centre for Future Work, explains how these seemingly contradictory trends can coexist:Read more
The Fair Work Commission has ruled that penalty rates for Sunday and public holiday work in the retail and hospitality sectors should be reduced, which would reduce hourly wages on those days by up to $10 per hour. Business lobbyists predict this will spark a hiring surge in stores and restaurants, as employers take advantage of lower wages to extend hours and ramp up operations. The economic logic of this claim is highly suspect, however -- especially in light of the fundamental factors which truly limit employment in these sectors (namely, the sluggish growth of personal incomes). 78 Australian economists have signed a public letter debunking these job-creation claims, arguing that the FWC's decision will lead to more inequality, not more employment.Read more
On April 1, Australia will surpass the Netherland's old record to mark the longest unbroken expansion of real GDP in modern history. While this result permits much chest-thumping on the part of some politicians, we should never assume that there is an automatic correlation between GDP growth and the well-being of people, society, and the environment.
In this guest commentary, Prof. Anis Chowdhury -- a new Associate of the Centre for Future Work, and a distinguished global economist -- provides some important perspective on this longest expansion in history.Read more
The Fair Work Commission's decision to cut wages for Sunday and holiday work in the retail and hospitality industries will exacerbate the stagnation of wage incomes in Australia, and undermine the standard of living of hundreds of thousands of workers who are already among the most underpaid and precarious in the whole economy.
Here is a full-length commentary on the decision by the Centre's Director, Jim Stanford, that appeared February 25 in The Age, The Sydney Morning Herald, and the Canberra Times.
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Economic elites around the world are rightly alarmed by the rise of right-wing populism, many streams of which (like the Brexit movement and Donald Trump) have directly challenged previous policies of free trade and capital mobility. Here in Australia, the One Nation party exemplifies some similar isolationist and xenophobic tendencies.
However, the main response of these elites to the challenge has been to simply double down on their standard argument that globalization as currently practiced is universally and self-evidently beneficial. Apart from temporary "transition difficulties" (that could easily be addressed with assistance for training and relocation), everyone is a winner. To counter the rise of populism, they urge governments to step up their efforts to "educate" concerned citizens about the virtues of free trade. Commonwealth Treasurer Scott Morrison made a strong statement in this vein recently to a business audience in Sydney.
Unfortunately, the real world economy doesn't actually work like the theoretical models predict, and denying that anyone is permanently hurt by globalization both flies in the face of empirical evidence, and will be ineffective in countering populist arguments. Instead, politicians should acknowledge that globalization is producing both loses and winners, and implement policies to reduce the costs and share the benefits. Here is Director Jim Stanford's commentary on Mr. Morrison's speech, published in the Huffington Post.