Tackling the Blight of Unemployment and Poverty in Australia

By Peter Brokensha

Beneath the statistics that seem to show Australia as a fast growing economy with relatively low unemployment lie seldom recognised massive levels of unemployment, poverty and deprivation.

In November 2003 there were 13% of the work force who either couldn't get any work or could not get enough work. The youth unemployment rate exceeded 20% and the unemployment rate for males between 45 and 65 is around 50%.

The acceptance of a "natural rate" of unemployment has lead to alarming levels of poverty according to many indicators developed by such organisations as the Brotherhood of St Laurence. 850,000 children live in jobless houses, indigenous life expectancy is 20 years below the average for all Australians, 17.9% of children live in poverty and the prime cause of poverty is unemployment.

The current policy assumptions state that the only way to reduce unemployment ("the natural rate" that is) is to abolish minimum wages, further deregulate industrial tribunals, put the squeeze on benefits and reduce the size of government. These polices have not worked but their advocates say that that is because they are not applied firmly enough.

To solve the unemployment problem means having a new mindset. As Frank Stilwell puts it, "the unemployment issue is labour social organisation and ethical foundations."

Brokensha sketches an approach that works from the following premises:

1. Acceptance the employment is a fundamental human right

2. Acceptance of the social and economic benefits of a full employment policy

3. Promotion of a reduction in overtime and sharing work

4. Put community pressure on corporations

5. Government as an employer of last resort

He argues that a job guarantee would be affordable and in a sense would not cost anything because the goods and services produced would increase GNP, and improve citizens feelings of social worth.

(Draws on the work of Bill Mitchell and John Burgess in the Australian Journal of Human Rights (1998))

Mitchell runs the Centre of Full Employment and Equity (CoFFee) at the Uni of Newcastle were they regularly publish on this issue. They also run a National Conference on Employment each December)

(Australian Options, Autumn 2004)