April 2019
Budget 2019-20: Ooops, They Did It Again!
You would think that after 5 consecutive years of wage forecasts that wildly overestimated actual experience, the government might have learned from its past errors – and published a wage forecast more in line with reality. But not this government. They are still trying to convince Australian workers, who haven’t seen real average wages rise in over 5 years, that better times are just around the corner. And rosy wage forecasts are helpful in justifying their equally optimistic revenue forecasts: since if Australians are earning more money, they will be paying more taxes!
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.
March 2019
124 Labour Policy Experts Call for Measures to Promote Stronger Wage Growth
124 labour policy experts have today published an open letter calling for proactive measures to help accelerate the rate of wages growth in Australia’s economy. The legal experts, economists, and other policy analysts agreed that “stronger wages in the future would contribute to a stronger, more balanced and fairer Australian economy,” and they proposed several broad strategies to boost wages.
A Historic Opportunity to Change Direction
A unique conjuncture of economic and political factors has created an opportunity for a historic change in the direction of Australia’s workplace and industrial policies. That’s the conclusion of Dr. Jim Stanford, Economist and Director of the Centre for Future Work, in a major review article published in Economic and Labour Relations Review, an Australian academic journal.
8 Things to Know About the Living Wage
There has been a lot of discussion about “living wages” in recent years – in Australia, and internationally. And now the idea has become a hot election topic. The ACTU wants the government to boost the federal minimum wage so it’s a true living wage. Opposition leader Bill Shorten has hinted he’s open to the idea. Business leaders predict economic catastrophe if the minimum wage is increased.
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.
Australia’s Upside-Down Labour Market
Workers produce more, but get paid less. Business invests less in real capital, but their profits grow. Technology advances at breakneck pace, but so many jobs are degraded and menial (not to mention horribly paid). What gives? Australia’s labour market truly seems “upside down.”
Rebuilding Vocational Training in Australia
Australia’s manufacturing sector has been experiencing an important and welcome rebound during the last two years. The turnaround has been documented and analysed in previous Centre for Future Work research (including studies published in 2017 and 2018 as part of the National Manufacturing Summit, co-sponsored by the Centre).
December 2018
New Video: Australia Needs a Pay Rise!
Jim Stanford, Director of the Centre for Future Work, was recently featured in a new video produced in collaboration with United Voice and the Flip production company.
The Year Past, and the Year to Come
Workforce (a labour relations bulletin published by Thomson-Reuters) recently surveyed major IR figures in Australia on what they saw as the big issues in 2018, and what they expect as the major talking points for 2019. Jim Stanford, economist and Centre for Future Work director, was one of those surveyed, and here are his remarks. What
Industry-Wide Bargaining Good for Efficiency, as Well as Equity
In this commentary, Centre for Future Work Associate Dr. Anis Chowdhury discusses the economic benefits of industry-wide collective bargaining. In addition to supporting wage growth, industry-wide wage agreements generate significant efficiency benefits, by pressuring lagging firms to improve their innovation and productivity performance. The experience of other countries (such as Germany and Singapore) suggests that
Are States Filling the Democratic Void?
The recent Victorian election results showed Australian voters want governments to play a pro-active role delivering public services, infrastructure, improved labour standards, and sustainability. They showed that in a time of deep cynicism with federal politics, States (and Territories) can play an important role filling the democratic void left by dysfunction and policy paralysis at
November 2018
New Book: The Wages Crisis in Australia
Australian wage growth has decelerated in recent years to the slowest sustained pace since the 1930s. Nominal wages have grown very slowly since 2012; average real wages (after adjusting for inflation) have not grown at all. The resulting slowdown in personal incomes has contributed to weak consumer spending, more precarious household finances, and even larger government deficits.
Go Home on Time Day 2018
Wednesday 21 November is Australia’s official “Go Home On Time Day,” sponsored by the Centre for Future Work and the Australia Institute. This represents the 10th year of our initiative, to provide light-hearted encouragement to Australian workers to actually leave their jobs when they are supposed to. Instead of working late once again – and allowing your employer to “steal” even more of your time, without even paying for it – why not leave the job promptly. Spend a full evening with your family or friends, visit the gym, see a movie – do anything other than work.
October 2018
“Permanent Casuals,” and Other Oxymorons
Recent legal decisions are starting to challenge the right of employers to deploy workers in “casual” positions on an essentially permanent basis. For example, the Federal Court recently ruled that a labour-hire mine driver who worked regular shifts for years was still entitled to annual leave, even though he was supposedly hired as a “casual.” This decision has alarmed business lobbyists who reject any limit on their ability to deploy casual labour, while avoiding traditional entitlements (like sick pay, annual leave, severance rights, and more). For them, a “casual worker” is anyone who they deem to be casual; but that open door obviously violates the intent of Australia’s rules regarding casual loading.
August 2018
Infographic: The Shrinking Labour Share of GDP and Average Wages
The Centre for Future Work recently published a symposium of research investigating the long-term decline in the share of Australian GDP paid to workers (including wages, salaries, and superannuation contributions). The four articles, published in a special issue of the Journal of Australian Political Economy, documented the erosion of workers’ share of national income, its causes, and consequences.
July 2018
Possibly Surprising Insights on the Future of Work
Trade unionists are gathering this week at the ACTU’s triennial Congress in Brisbane. Jim Stanford, Director of the Centre for Future Work, participated in a panel on the Future of Work (an apt title!) at the Congress.
Centre for Future Work at #ACTUCongress18
Trade unionists from across Australia are gathering in Brisbane this week for the 2018 Congress of the Australian Council of Trade Unions. And the Centre for Future Work will be there!
June 2018
The Dimensions of Insecure Work in Australia
Less than half of employed Australians now hold a “standard” job: that is, a permanent full-time paid job with leave entitlements. That’s the startling finding of a new report on the growing insecurity of work published by the Centre for Future Work.
Insecure work: The New Normal
Most Australians know in their guts that it’s pretty hard to find a traditional permanent job these days. And now the statistics confirm it: less than half of employed Australians have one of those “standard” jobs. And more than half experience one or more dimensions of insecurity: including part-time, irregular, casual, contractor, and marginally self-employed jobs.
May 2018
A Comprehensive and Realistic Strategy for More and Better Jobs
The Australian Council of Trade Unions has released a major policy paper outlining an ambitious, multi-faceted program to address the chronic shortage of work, and the steady erosion of job quality, in Australia. The full paper, Jobs You Can Count On, is available on the ACTU’s website. It contains specific proposals to stimulate much stronger job-creation, reduce unemployment and underemployment, improve job quality (including through repairs to Australia’s industrial relations system), and ensure that all communities (including traditionally marginalised populations like indigenous peoples, women, youth, and people with disability) have full access to the decent work opportunities that the plan would generate.
April 2018
Wages Crisis Has Obvious Solutions
Mainstream economists and conservative political leaders profess “surprise” at the historically slow pace of wage growth in Australia’s labour market. They claim that wages will start growing faster soon, in response to the normal “laws of supply and demand.” This view ignores the importance of institutional and regulatory factors in determining wages and income distribution. In fact, given the systematic efforts in recent decades to weaken wage-setting institutions (including minimum wages, the awards system, and collective bargaining), it is no surprise at all that wages have slowed to a crawl. And the solutions to the problem are equally obvious: rebuild the power of those institutions, to support workers in winning a better share of the economic pie they produce.
March 2018
The Difference Between Trade and ‘Free Trade’
U.S. President Donald Trump’s recent trade policies (including tariffs on steel and aluminium that could affect Australian exports) have raised fears of a worldwide slide into protectionism and trade conflict. Trump’s approach has been widely and legitimately criticised. But his argument that many U.S. workers have been hurt by the operation of current free trade
January 2018
Scare Tactics for Corporate Tax Cuts Do Not Stand Fact Checks
In the wake of the Trump Administration’s success in pushing a major company tax cut through the U.S. Congress, the Australian Treasurer has stepped up his calls for reduced company taxes here. He claims Australia will bypass the growth-inducing benefits of these tax cuts, but Dr. Anis Chowdhury, Associate of the Centre for Future Work, has compiled the economic evidence. The U.S. experience shows no statistical evidence of any “trickle-down” growth dividend from company tax cuts.
December 2017
Job Opportunity – Research Economist
The Centre for Future Work invites applications for an economist to join our research team in labour market research and policy analysis, working from our offices in Sydney or Canberra.
November 2017
Job Growth No Guarantee of Wage Growth
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.
July 2017
The Future of Work is What We Make It
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.
The Paradox of Rising Underemployment and Growing Hours
Paradoxically, underemployment and number of hours actually worked are both on the rise in Australia.
May 2017
Budget Wrap-Up
Commonwealth Treasurer Scott Morrison tabled his 2017-18 budget in Parliament House on May 9, and the Centre for Future Work’s Director Jim Stanford was there in the lock-up to analyse its likely impacts. Here are some of our main impressions and comments:
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