Unemployment: Promises, Policies and Progress

Abstract

Unemployment remains anchored above eight percent while average unemploxment duration is around 51 weeks and the youth unemployment rate is above 20 per cent. The Coalition's policy manifesto for the 1996 federal election emphasised the seriousness of the unemployment problem; indeed, it gave priority to reducing the unemployment rate, especially the relatively high youth rate, and to the generation of ‘real’ jobs. Over the past two and a half years the Coalition Government has put in place a series of supply-side reforms that are justified on the basis of their contribution towards reducing unemployment. Industrial relations reforms, fiscal consolidation, the privatisation of the Commonwealth Employment Service, the abolition and consolidation of labour market programs and the privatisation of public sector business enterprises are all part of the unemployment reduction program. To date, the success of this program has been limited, job creation remains low, and ‘real’ jobs remain scarce since net job growth is largely located in part-time and/or casual employment arrangements.