Brotherhood Comment November 2007

Brotherhood Of St Laurence

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ISSN 320 8632A regul Ar upd Ate from the r ese Arch And policy centreNovember 2007Employment assistanceTime for a fresh approachThe Job Network has played a • misunderstanding of the Dole (WfD) participants (93 000 significant role over the past decade aspirations and barriers faced commencements annually) have in assisting those who are job ready by disadvantaged job seekers been on income support for over to re-enter the workforce. However, two years, and one in five have less • inefficient fragmentation and its model of assistance was designed than Year 10 education (DEWR complexity of programs with for labour market conditions that 2007b). Yet only 13% of WfD separate accountabilitiesexisted in the mid 1990s, with participants achieve full-time • reliance on sequential forms double the unemployment level of employment (measured three of assistancetoday. Despite an unprecedented months after exit), while the 59% period of economic growth, there remain unemployed and 10% drop • inadequate and skewed are still over one million Australians out of the labour force altogether.allocation of resourcesof working age who are either • relatively weak outcomes for the unemployed or are seeking more Spending prioritiesmost disadvantaged job seekers. work than they have. In June, there Australia has underspent on were over 760 000 income support active labour market assistance To illustrate these weak outcomes, beneficiaries being assisted by the compared ...

Informations

• Publié par: Mephar
• Nombre de lectures: 33
• Langue: English

Extrait

A r e gul A r u p d Ate f rom the r ese A rch A nd p olicy centre

ISSN 1320 8632 November 2007

Employment assistance Time for a fresh approach The Job Network has played a • misunderstanding of the Dole (WfD) participants (93 000 significant role over the past decade aspirations and barriers faced commencements annually) have in assisting those who are job ready by disadvantaged job seekers been on income support for over to re-enter the workforce. However, its model of assistance was designed  •i c n o e m ffi p c l i e e x n it t  y f   r o a f  g p m ro en g t r a a ti m o s n     w a i n th d     t t 2 h w 0 a o 0 n   7   ye Y b) a e .  r a s r Y ,   e   1 t a   0 n o   d e n   d l o y u   n c 1 e a 3   t i i % n o     fi n o   v f (   e D   W h E f av W D e  R le   ss  for labour market conditions that existed in the mid 1990s, with  separate accountabilities  participants achieve full-time double the unemployment level of  • reliance on sequential forms  employment (measured three today. Despite an unprecedented  of assistance  months after exit), while the 59% period of economic growth, there are still over one million Australians  • inadequate and skewed  remain unemployed and 10% drop allocation of resources  out of the labour force altogether. of working age who are either unemployed or are seeking more  • relatively weak outcomes for the Spending priorities work than they have. In June, there  most disadvantaged job seekers.  Australia has underspent on were over 760 000 income support  outcomes beneficiaries being assisted by the  To illustrate these weak k    for the   , active labour market assistance  Job Network, over half (51%) of  over half (55%) of Wor  compared with the OECD. We rank whom had been on benefits for over Direct diture by OECD nations on active labour market 12 months, and 22% unemployed Figure 1: expen for over 3 years (DEWR 2007a). assistance as % of national GDP (2005–06) Training, rehabilitation, supported employment, work & startup incentives, direct job creation 1.6 It is now time to reconfigure 1.4 employment assistance to invest in better integrated approaches 1.2 that will be more effective for 1.0 the longer term unemployed who 0.8 invariably have multiple barriers 0.6 to work. The current ‘work first’ 0.4 philosophy is inadequate to assist 0.2 those most distant from paid work. 0.0 Overseas research indicates that a mixed model with emphasis Source: OECD 2007 on investment in joined-up assistance and support to build Contents the skills and capacities of job seekers, resolve their barriers to participation (including health and Spotlight on working age Australians: the Brotherhood’s third Social Barometer housing) and provide paid work Forging new directions: research and policy development in retirement and ageing   experience is more effective. Equity in response to climate change: an issue of critical importance Limitations of the current system n   The current employment assistance Social policy: the new mai game system is characterised by:  Going nowhere fast: transport as a cause of social exclusion Ethical threads: examining corporate social responsibility in Australia’s garment industry   • high and increasing levels Human righ and social inclusio   of regulatory burden and ts n contractual obligations Playgroups in Greater Dandenong: benefits and barriers  

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4–5 6–7 8–9 10 11 12 13 14

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Continued from page 1 10th from the bottom in terms of regional and local disadvantage. direct expenditure on vocational This requires targeted strategies training, work incentives, supported to resolve infrastructure barriers employment and other investment to to employment (such as public assist those who are not ‘job ready’ transport and child-care) and to (Figure 1). Within this, Australia support individual job pathways. spends only 0.04% of GDP in the area of vocational training to help The current labour market the unemployed, compared with environment offers a unique Denmark which spends 13 times opportunity for partnership between more and New Zealand which governments, employers and spends 4 times more (OECD 2007). community support agencies to invest in innovative approaches to address In this time of economic local needs. As leading economist prosperity and growing Saul Eslake (2007) concluded in his wealth, we are significantly recent Sambell Oration, underinvesting in training and skills development, despite the Perhaps now, with an economic growing industry shortages and imperative as well as out of a sense of continuing underutilisation of fi m n o a r l a ly l    a b n e d g   i s n o  t c o i   al m  o a b k l e i   g i a n t r i o o a n d ,    w i e n   t m o  ay  those in the labour market. s entrenched disadvantage and poverty. New approach The Brotherhood is therefore calling  a A s n s   i e st m an er c g e i  a n i g  m f e o d r   m at     o d f i   s e a m d p v l a o n y t m ag e e n d t  for a fresh approach to employment assistance, to be introduced on expiry  job seekers is the Intermediate of the current contracts in 2009, that:  Labour Market (ILM) model of up to 12 months paid work •simplifies the current system I in L  a M  s s  u t p y p p o ic r a ti l v l e y    o en p v e i r r a o te n   ment m .  all as s • strengthens the initial  businesses run by not-for-profit assessment and engagement  organisations and compete with process to consider fully  private businesses in the open job seeker barriers and  market. Overseas evidence, initial capacities for work  findings from the Brotherhood’s • invests more resources in  latest research and cost–benefit integrated approaches that  modelling point to substantial gains build skills and capabilities of  from investment in ILMs (Mestan the long-term unemployed  & Scutella 2007). The Brotherhood urges expansion of ILMs through • offers concurrent assistance  capital seed funding and social which includes meaningful  procurement commitments by paid work, skills development  governments in Australia. and personal support. In addition to the above reform of  Increased investment now will the universal system for employment  t p h a r y o  o u f g f  h i   n a     t b h e e t   t l e o r n  s g k e i r l   l t e e d r   m an — d  assistance, it is essential to address

Brotherhood Comment is published three times a year by the Research and Policy Centre of the Brotherhood of St Laurence. The Brotherhood of St Laurence works for the well-being of Australians on low incomes to improve their economic, social and personal circumstances. It does this by providing a wide range of services and activities for families, the unemployed and the aged. It also researches the causes of poverty, undertakes community education and lobbies government for a better deal for people on low incomes.

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more productive workforce to meet the dynamic changes in the economy over the next decade. No matter what the outcome of the federal election, a new vision for employment assistance is urgently required, placing greater emphasis on human capital development as a key element of a social inclusion framework. The Brotherhood will continue to focus on turning this vision into program reform based on our service delivery experience and research evidence. Michael Horn [phone] [e-mail] References Department of Employment and Workplace Relations (DEWR) 2007a, Labour Market Information Portal, employment service area data, Job Network , viewed 21 September, <http://www.workplace.gov.au/lmip/ EmploymentData/> —— 2007b, Labour market assistance outcomes, year ending March 2007 , Issue 25, DEWR, Canberra. Eslake, S 2007, Social policy in a fully ‘ employed’ economy , 2007 Sambell Oration presented at the Brotherhood of St Laurence Conference ‘The economic  and social imperative: tapping the potential of disadvantaged Australians’, Melbourne, 27 September. Mestan K & Scutella, R with the Allen Consulting Group 2007, Investing in people: Intermediate Labour Markets as pathways to employment , Brotherhood of St Laurence, Fitzroy, Vic. OECD 2007, Employment outlook 2007 , OECD, Paris.

Published in November 2007 by Brotherhood of St Laurence 67 Brunswick Street Fitzroy, Victoria, 3065 Australia ABN 24 603 467 024 Telephone: [phone] Facsimile: [phone] E-mail: [e-mail]

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From the General Manager

The closing months of 2007 have been good times at the Research and Policy Centre. We have had additions to staff, and the new Senior Management structure reported in the last issue has given the Centre a lift. But most of all a more favourable climate for social policy development in Australia, reported in previous issues, does seem to have taken hold. In the recent organisational review of strategy, it has been widely reported that our framing of policy around the themes of social investment, inclusion, and governance, with a focus on the four transitions, is resonating with a new political will to tackle social disadvantage. The policy context Three factors in particular are said to be shaping this more expansive policy horizon; and in each area the Brotherhood of St Laurence is already well and truly engaged. The first has been the consolidation of the consensus that governments, industry and welfare organisations must act to boost economic participation and productivity under the pressure of skill shortages and the ageing population. In this issue, Michael Horn reports on the BSL’s innovative work on new models of employment assistance which can engage effectively with the long-term unemployed; and Paul Smyth reflects on recent key developments in the light of his Foenander Public Lecture at the University of Melbourne. In partnership with the Centre for Public Policy at the University of Melbourne, the BSL held a seminar on ‘Low Paid Work in Australia: Realities and Responses’. Daniel Perkins and Rosanna Scutella spoke about their Australia Research Council funded project looking at how to strengthen upward mobility through policies to secure

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retention and advancement once people are in employment. A highlight of the day was the launch of the third issue of the Brotherhood’s Social Barometer, dealing with the ‘working years’. We were delighted to have it introduced by Professor Stephen Sedgwick, the new Director of the Melbourne Institute for Applied Economic and Social and Research. In his response, Tony Nicholson referred to the Institute and the BSL as ‘two great Melbourne institutions’ together in a most welcome partnership. A second key factor has been the growing impact of climate change, with the pressing need for an active government role in addressing both economic and social implications. The BSL has been a leader in addressing the equity implications; and ‘flagship’ research and policy projects have been put in place to address these over the next three years. Two new staff have recently joined Janet Stanley who is driving the work in this area. In this issue, Janet outlines this work and reports on early findings about the regressive nature of a carbon tax. Janet is also working with Victoria Johnson and Paul Smyth on a project dealing with transport and social inclusion. Victoria reports on related publications and ongoing research arising from this ARC- funded project in partnership with Monash University Institute of Transport Studies and the Victorian Department of Infrastructure. A third factor has been the new convergence of interest between welfare groups and business interests. Our sense a year ago that ‘good social policy can be good for business’ has since matured enormously. We are encouraged by the heartening sentiments

expressed recently by the Business Council of Australia, reported in this issue; and the BSL is engaged in serious partnership initiatives with peak business organisations such as the Victorian Employers’ Chamber of Commerce and Industry. Emer Diviney and Serena Lillywhite have completed their research report on corporate social responsibility (particularly relating to labour rights) in the garment Our framing of industry, generating considerable p h oli   c t y h   e ar m o e u s n  o d f     interest from the sector. t e social investment, Also in this issue, Gerry Naughtin incl e u r si n o a n, and  reports on the findings of a series g a  o f v ocuso n n c   e t , h   e with     of workshops on ageing and social four transitions, is exclusion which he conducted with resonating with a Sandra Hills, the BSL’s General new political will Manager of Aged and Community to tackle social Care, in order to establish clear disadvantage. directions for the new research and policy program focusing on retirement and ageing. Kemran Mestan comments on the intersection between human rights and social inclusion and Lucy Nelms introduces work in progress on an evaluation of the innovative Neighbourhood Justice Centre. Finally, Nicole Oke reports on research about playgroups, one of several projects relating to the well- being of families and young children which are nearing completion. Paul Smyth [phone] [e-mail]

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Spotlight on working age Australians The Brotherhood’s third Social Barometer Australia’s working age population and housing, good physical and widespread. A divide is emerging is the engine room of the nation’s mental health, physical safety and within the working age population: economy. These workers produce participation in the community. while a growing number of the goods and services that generate Australians have a bachelor degree, national wealth, and their taxes People’s working lives, defined a significant number of others lack fund government spending on health in this report as the span from any non-school qualification. This and aged care, social security and 18 to 64 years, are now less is of particular concern given that education. Many have prospered linear and involve many more a larger percentage (up to 37%) of in the last 15 years. However changes and shifts in direction. It those with limited education are closer examination shows that too is important that all Australians unemployed or not in the labour many people are missing out on are well equipped to negotiate force than of those with higher sharing our national prosperity. these transitions successfully. qualifications (see Figure 1) Low education is . correlated with The working years Findings The extent of relative poverty poor health, and   The Brotherhood of St Laurence This third Social Barometer has has increased over th last two both are causes is particularly concerned that confirmed that Australia is a decades in Australi e a   s income  of unemployment a and low income. Australia lacks agreed standards for very prosperous nation. In each distribution has become more understanding the extent of social dimension of life we have examined, unequal (Wilkins 2007). Wealth disadvantage. For this reason we the vast majority of the working is distributed much more unevenly have established the Brotherhood’s age population is doing well. In than income, with the net worth of Social Barometer.   The third report many areas, the outcomes and the wealthiest Australians averaging in the series has just been produced, capabilities of working age people 54 times the net worth of the following Monitoring children’s are improving, and the level of poorest Australians (see Figure 2). chances (Scutella & Smyth 2005) disadvantage is receding. Most and Challenges facing Australian working age people are living More working age people are youth (Boese & Scutella 2006). longer, they are more highly skilled, overweight or obese, and this It examines disadvantage among and they are earning substantially is contributing to a rise in the Australia’s working age population higher incomes than in the past. prevalence of chronic health in eight key dimensions of life. Each conditions such as diabetes. dimension reflects basic capabilities However, not all working age Various long-term physical health and opportunities that every person people are better off. Some people problems, as well as mental should enjoy, including employment, continue to experience deep illness, are restricting the ability of education and training, access disadvantage, and some problems some people to participate in the to adequate economic resources are actually becoming more

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Figure 1 Labour force status of those aged 15 to 64 by highest qualification, Australia, May 2005 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Postgraduate degree/ Bachelor degree Advanced diploma/ Certificate III / IV Certificate I / II Without a graduate diploma/ diploma non–school qualification graduate certificate Source: ABS 2006, ea a wk , Australia 2006, Table 11.

    oNevbmre  0270 ww

Not in the labour force Unemployed Employed

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workforce, at considerable cost to them personally and to the nation. Figure 2 Net worth of households by wealth quintile, 2003–04 1600 I p t  r i o s  s e p v e i r dent  h th at at, despite s   t t r h a e l   ians  1400 ity t most Au have enjoyed, too many people 1200 remain entrenched in disadvantage 1000 rin dug  T th h eir e     p g r r i o m u e p   s w  e o x r p ki e n ri g e   nce  800 years. es poor outcomes across several 600 dimensions of life. Low education 400 is correlated with poor health, and both are causes of unemployment 200   and low income. This has a 0 compounding impact on their well-being and on their ability to move out of disadvantage. Wealth quintile What we must do Source: ABS 2006, h wa a wa b , Table 6. State and federal governments in investment in education and of Australia have recognised specific  It is critical to maximise the The lack areas of concern, but further  training over the life course, economic and social participation affordable, secure- investment is needed to ensure  to ensure that the skills and of all Australians if we are to tenure housing is a e of wor  productivity of workers marginally substantial barrier that all peopl o k   i e n n g age  attached to work are kept up  further strengthen the nation’s  to participation in p h r a o v d e  u t c h t e i   v c e a l p y  a i b n i   l t i h ti e e   s w  t orkfo g r a c g e e     and  to date with employer needs. o w v e e l r l- a b ll e   i p n r g o   s o p v e e r r i   t t y h   e a   n n d e   x c t o  d m ec m a u d n e i . ty  training and work. to lead healthy and rewarding lives. One of the fundamental policy Note Better integrated models of  reforms required is to address The full report, The Brotherhood’s assistance are needed to address  the growing housing crisis, since Social Barometer: the working the multiple barriers faced by  the lack of affordable, secure-years , launched by Professor disadvantaged working age  tenure housing is a substantial Stephen Sedgwick of the Melbourne Australians, so they can gain  barrier to participation in training Institute on 17 October, is available the skills and confidence to  and work. The Brotherhood of on the Brotherhood’s website. participate fully in the labour  St Laurence supports proposals market. Particular groups requiring  for a national affordable housing Rosanna Scutella assistance include Indigenous  plan as a matter of urgency. [phone] Australians, people with disabilities  [e-mail] and long-term health conditions  A new approach is needed to (physical and mental), and people  assessing the capacity for economic References with low levels of education  and social participation of people Australian Bureau of Statistics (ABS) 2006, and inadequate work skills.  with d   i p ti h o y n si s c .  a I l n  a cr n e d a   s m e e d  n e ta m l  p h h e a a s l i t s h     must  A H u o s u tr s a e l h i o a l , d C w at e . a n lt o h . a 6 n 55 d 4 w .0 e , a   l C t a h n d b is e t r r r i a b . ution , con Australia must improve on its  urin e —— 2006, Education and work, Australia low levels of spending on active  f b a e c   i p n l g a   c e e x d t   r o a n     b e a n r s riers  g o   r t   h w a i t t   h p   e c o a p r l ing  2006 , Cat. no. 6227.0, ABS, Canberra. labour market assistance for the  responsibilities are able to develop Wilkins, R 2007, The changing socio- unemployed relative to other OECD demographic composition of poverty countries. Additional investment  their full potential in the workforce. i P n a   p A e u r st N r o a . l   i 1 a 2 1 / 9 0 8 7, 2   – M 2 e 0 lb 0 o 4 u ,  rn W e o  I r n k s i t n i g t   ute  is required to build on joined-up  It is also important to ensure Working Paper Series, Melbourne models of employment assistance  that the well-being of those who Institute, University of Melbourne. that provide pathways to sustainable  remain unable to participate careers through individualised  in the workforce is protected training, meaningful work  through an adequate safety net. experience and job opportunities. There also needs to be increased

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Forging new directions Research and policy development in retirement and ageing The ageing of Australian society on the Ageing Australia are arguing Mature age employment is resulting in new and changing that the age pension is not keeping A further dimension of our review patterns of disadvantage amongst pace with the actual costs of food, has been consideration of how older people. This article housing, medication, health care we can contribute to preventing discusses the ways in which the and transport, resulting in financial poverty among future older Brotherhood is redeveloping its hardships for a significant number Australians, as well as responding work to respond to the issues of older Australians. Research by to those currently experiencing facing an ageing Australia. Westpac and the Association of disadvantage. Traditionally, the Superannuation Funds of Australia Brotherhood’s focus in ageing has We began this work with a (2007) highlighted a difference in been on people aged over 65 years— series of consultations with June 2007 of around $4000 per that is, those already in retirement. consumers, academics, government, year between what they identify as However, if financial stress in older philanthropic, community and the costs of a modest lifestyle and age is to be avoided, then we need business organisations, and the full age pension for a single to broaden our focus to include service providers, to enable the person. This research identified strategies for improving retirement Brotherhood to listen to a broad single older people as the most savings for people on low incomes, range of views. The workshops vulnerable to financial stress. by exploring avenues such as savings have examined key trends, research plans, continuing employment and priorities and ways in which the Housing affordability re-training for those in the 50 to Brotherhood can contribute to the The cost of housing for older 65 age bracket. The challenge is discussions about emerging patterns people renting is also emerging as to improve opportunities to assist of financial and social disadvantage a significant cause of disadvantage mature-aged employees to remain which will affect older people amongst older Australians. The in the workforce longer, build their over the next decade. KPMG were combination of the increase in retirement savings and increase the commissioned to undertake a review private rental costs and the shortage equity in their home (Encel 2003). of the literature on disadvantage of public housing for seniors is and older people. On the basis created significant housing stress for Reshaping our directions in of this work, three issues have older people on fixed incomes who retirement and ageing been identified as initial priorities do not own their own homes. The In response to these changing for further research and policy number of people aged 65+ living in patterns of disadvantage amongst development. These are financial lower-income rental households is older Australians, the Brotherhood disadvantage, housing affordability projected to increase by 115 per cent has identified the following and mature age employment. from 195 000 in 2001 to 419 000 in strategic directions for our service 2026. The greatest projected change provision and research and Financial disadvantage is in the 85+ age range, where the influencing work in retirement and The indexing of age pensions number of low-income renters is ageing over the next five years: to Male Average Weekly Total estimated to grow by 194 per cent Earnings in 1997 provided a from 17 300 to 51 000. This will • Building an informed and formula that was expected to create a strong and continuing evidence-based understanding guarantee that the age pension demand for rental housing suited of poverty, social exclusion would keep pace with the costs to older, lower-income, sole-person and social isolation amongst of living (The Treasury 2007). households. These households are older people and becoming a Recent research evidence and the projected to more than double in national voice on these issues experiences of the Brotherhood number over the same period, from by investing in our research and suggest that this optimistic scenario 110 800 to 243 600. Approximately policy development capacities does not apply to all older people two-thirds of these households will and in running campaigns. and that there are substantial be single women (Jones et al. 2007).  • Capacity building amongst g a r r o e  u m p i s s   s o i f n  o g l   d o e u r t    o A n u   s a t   r f a a l i i r a  s n h s  a w re h   o  The issue of housing affordability  t 4 o 5     r t e o d  6 u 5 c - e  y l e e a v r e - ls o   l o d f     p r r e e d - u re n t d ir a e n e c s  y  for seniors has not been considered of the increasing wealth of the  as part of the broader housing  and early retirement amongst n W a a ti r o re n  n (   A &  M O P g   u & z   o N gl A u T  2 S 0 E 0 M 7)   . 2   007;  debate. Consequently, the  i o m ld p e r r o   v w e o  s r a k v e i r n s  g o s n     a l n o d w     p i r n o c v o id m e e   s,  C organisations such as  Brotherhood has identified it as  tr ining opportunities. onsumer a further priority of our future  a National Seniors and the Council research and policy work.

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