Current Research on Unemployment: Introduction

Abstract

Unemployment has been a significant problem for Australian economy since early 1970s. Despite this (or perhaps because of it?) problem of unemployment has largely been ignored in recent policy debate. It is unclear whether this is because unemployed have become disenfranchised, or because, having lived with problem for so long, general population has become immune. Whatever reason, goalposts have shifted. What would have been considered a high rate of unemployment for most of Twentieth Century is now regarded as indicating very successful macro economic policy. A Reserve Bank of Australia Conference reviewing Australian economic policy in 1990s was very congratulatory about success of policy over that decade. In summing up conclusions reached at conference, Gruen (2000: 7) talked about notable successes and stated that the Australian economy performed well in 1990s, both compared to its past and to experiences of other countries. Yet even towards end of long boom of 1990s unemployment was higher than its average level, over boom and slump, for whole of Twentieth Century. (1) The extent and cost of unemployment need constant emphasis. Previous symposia in this Journal have focused on costs of unemployment, and health implications, (2) and we have had two special issues dedicated to question of unemployment and its cures. (3) Now three recent books have brought together much of what we know about unemployment and taken discussion an important step forward, namely: The Price of Prosperity, edited by Saunders and Taylor [UNSW Press: 2002 ISBN 0 086840 541 8], Unemployment: The Tip of Iceberg edited by Mitchell and Carlson [Centre for Applied Economic Research: 2001 ISBN 0 7334 1860 0] and Work Rich, Work Poor edited by Borland, Gregory and Sheehan [Centre for Strategic Economic Studies: 2001 ISBN 1 86272 583 7]. These three books each focus on different aspects of total picture of work and unemployment. The Price of Prosperity argues that, in a time of significant economic growth and prosperity for a large number of Australians unemployed have been left behind, and are paying price for that prosperity. It aims to identify multifacets effects of unemployment on those directly effected as well as their families and community in general. In other words, book attempts to examine not only economic but all social implications of unemployment in order to identify costs involved. As its title indicates, Unemployment: The Tip of Iceberg is mainly concerned with measurement of unemployment, arguing that measured unemployment represents tip of iceberg with respect to actual number of people who are jobless or who would want to work more or who want greater job security. …