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Unemployment rate twice what Government says

13 November 2003

Unemployment and underemployment stands at around 1.3 million -- just over twice the official rate according to major new research by ACOSS.


Releasing the surprise findings at the peak welfare body's national congress in Canberra, ACOSS President Andrew McCallum said:

"The standard unemployment rate has dropped to 5.6% but our research shows that the real extent of enforced joblessness is over 12% -- around twice the standard figure."
"This confirms what many have suspected. The standard unemployment measure the Government relies on grossly understates the extent of joblessness and underemployment in Australia."
"The standard unemployment measure leaves out people who want to work but have given up looking, or who are not ready to start immediately, or already have some part-time work -- even as little as one hour a week -- but who want more."
"ACOSS conservatively estimates that 716,000 'hidden unemployed' people are excluded from this standard measure. Most of these people would be on social security payments. They include:
· Mothers who want to work but can't afford or find enough child care
· People with disabilities who need more accessible transport and workplaces
· Mature-age people who want to work but have given up looking because they face employer discrimination or need more skills and training
· Young people with tiny amounts of part-time or casual work
"Our research shows that there is a strong gender imbalance in the unemployment data with women comprising two thirds of hidden unemployed people."
"It also found that hidden unemployment is a big problem in regional Australia and States such as Tasmania and South Australia where many jobseekers have given up looking -- a serious problem not picked up in the standard unemployment figures."
"The standard unemployment measure is a useful economic indicator, but it has failed to capture major changes in Australia's job market and is now masking the real extent of joblessness & hardship that exists. ACOSS calls on the Government to supplement it with a new expanded measure that exposes hidden unemployment and helps develop new policy responses to deal with the problem."
Unemployed(standard measure) Hidden unemployed Total unemployed plus hidden unemployed
Underemployed(less than 16 hrs/wk) Wanting work but not currently looking* or unable to start immediately
Males 354,000 86,000 153,000 593,000
Females 273,000 160,000 317,000 750,000
All 627,000 246,000 470,000 1,343,000
Source: ABS Sept 2002 -- this is the most recent data on 'excluded joblessness' and underemployment.
  • Excluding full time students and parents preferring to care for children at home.
Further information: Hidden unemployment in Australia -- www.acoss.org.au


Contact Details

WWW : http://www.acoss.org.au

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