Barriers and Incentives to Labour Force Participation

 

The ABS has released a terrific data set – Barriers and Incentives to Labour Force Participation. The link is here:  http://www.abs.gov.au/ausstats/abs@.nsf/mf/6239.0?OpenDocument

There is a stack of interesting information in the release, but something that caught my eye was the overview of those of working age who were not in the labour force and the number of those who were actively looking for work.

Here is what the ABS found:

• Of the 5,459,600 people not in the labour force, only 1,212,800 (22%) wanted a paid job. In other words, there are 4,246,800 with no interest, intention or ability to enter the paid workforce.

• Of the 1,212,800 who wanted a paid job, some 847,900 were available to start work, yet only 30,300 actively looked for work.

This means that only 5.5% of those people not in the labour force were actually looking for a job.

This means that next time you hear about a drop in the participation rate being linked to disillusioned job seekers leaving the labour market, turn away, close that email, delete that thought because it is not supported by the facts.

As a final note, of the 4,246,800 of working age not on the labour force:

• 965,200 said they had no need to work;

• 1,396,900 were permanently retired;

• 17,200 said their welfare/pension may be affected;

• 783,600 had a long-term sickness or disability;

• 215,000 were studying;

• 367,900 were caring for children;

• 215,800 were caring for ill, disabled elderly person;

• 46,100 were pregnant; and 58,700 said they were undertaking home duties.

There you go.