Forms of work in Australia
Staff working paper
This paper by Anthony Shomos, Erin Turner and Lou Will was released on 23 April 2013.
The paper analyses changes in the prevalence of different forms of work in Australia over the decade to 2011, and explores possible explanations for observed changes.
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- While employment in most forms of work (FOWs) grew in absolute terms over the decade to 2011, only permanent employees became more 'prevalent' (increased as a share of employment).
- Owner managers of unincorporated enterprises (OMUEs) fell in prevalence by 2 to 3 percentage points, offsetting the increase for permanent employees.
- Casuals and fixed term employees were no more prevalent at the end of the decade than at the start. Labour hire workers probably became less prevalent, and it is likely that the workforce share of independent contractors also fell.
- Relatively rapid growth of casual and independent contractor employment from the 1980s, and labour hire workers from the 1990s, did not continue through the 2000s.
- In 2011, permanent full-time and part-time employees accounted for about 60 per cent of the workforce. Casual employees and self employment accounted for a little under 20 per cent each. Fixed term employees accounted for the small residual and labour hire workers (who are employed under a mix of FOWs) represented about 1 per cent of employment.
- Over the decade to 2011:
- Increases in the prevalence of permanent employees were particularly strong in the mining states (Queensland, Western Australia and the Northern Territory).
- Structural change at a broad industry level appears to have played little role in prevalence changes.
- An increase in the employment share of higher skilled jobs was associated with the increased prevalence of permanent employees.
- Falls in the numbers of farmers and farm managers explain about half of the decline in the prevalence of OMUEs in the non mining states.
- The increased prevalence of permanent employees occurred disproportionately in part time jobs and among workers aged 50 to 69.
- More pronounced prevalence changes in the mining states could have been related to:
- strong competition for workers encouraging greater job mobility. Hiring of permanent employees can mitigate costly turnover.
- greater confidence in business viability. A fall in the risk of layoffs, and associated redundancy costs, might have encouraged employers to offer more permanent employee roles.
- At a national level, a preference for permanent employee roles rather than self employment among some workers - accommodated by relatively strong labour markets - might have played a role in the fall in the prevalence of OMUEs.
Background information
Lou Will (Research Manager) 03 9653 2224
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