Labour market policies

Question 1

eg

Answer 1

• MENTION how it was increase protectionism since WorkChoices
• centralised wages (BOOT, NES, Awards) = not tied to things like productivity which may limit LT e/g
• • 123 awards, 11 NES. BOOT i.e. no disadvantages test = enforced by FWC, national mininmum wage (Jul: 2023 = 23.23)
• HOWEVER for low Y earners having good safety net means, protecting them could boost e/g in ST
• Can talk about Keynesian vs Classical view!!!!
• three tiered wage determination system = improvements in productivity = improvement in LT e/g
  Enterprise bargaining plays into incentive effect (unemployment fell 11% 1993 -> 6% 2009)
  NOTE: centralisations still saw an overall decrease in productivity (1990-2000 = 2.1%, 2000-2010 = 1.3%)

Question 2

u/e

Answer 2

• JobMaker -> 4bn JobMaker Hiring Credit = incentive to take on additional employees 16-35, 450 000 young Australians will be supported
• JobTrainer -> 1bn JobTrainer Fund = 307 000 additional fee or low fee training places for Australian to access new skills by retraining an up skilling them into sectors with job opps (PRE COVID NAIRU (4.5%) -> 3.7%), can also talk about hidden unemployment because its fee free
• Migration Planning -> 190 000 migrants taken in, 70% of which are highly skilled
• change LT structure of LM
• E.g. unemployment fell during Work Choices 4.59% -> 4.3%. Currently, unemployment sits as record low of 3.5%
• They exist to amend: skill shortages, structural unemployment, youth unemployment, hidden unemployment, labour productivity
• Jobs and Small Business Package (2015/16) -> 6.8bn to establish JobActive (job seeking services) = fall frictional u/e |. 1.2bn put into wage subsidies & job opps = fall hidden unemployment
• YouthPath (2016/17) = subsiding internships + apprenticeship for under 25 yrs -> 80 000 new apprentices made. ^ employability by ^ human capital. 2016 = youth u/e of 13.4%, 2018 = 12.3%
• VET (2019/20) -> Pre-COVID NAIRU 4.5% -> 3.7%

Question 3

under u/e

Answer 3

• 11 NES which cover lead, termination & redundancy, 38 hours minimum for full time
• Ensures casual workers get more house if they so wish: “offers and requests to convert from casual to permanent worker”
• April 2020: underemployment = 13.7% -> April 2023 underemployment = 6%

Question 4

price stability

Answer 4

• Centralisation = ^ safety net. = ^ labour costs = ^ C-push inflation
• Fair Work Act (2009) = ^ safety nets through NES, BOOT test (covering these expenses such as leave increases the cost of labour) -> to maintain profit margins they will increase prices
• Australia has one of the highest labour costs in the world -> general increase in underlying inflation from ~4% (2009) to ~6% (2023), RBA
• CPI 2009 = 1.2% -> 3.5% (2011)