Sorting out responsibilities for training the work force / Ralph E. Smith.

Abstract

This paper considers the circumstances in which it is appropriate for a government to subsidize training and examines the current mix of programs administered by the Australian Commonwealth's Department of Employment and Industrial Relations (DEIR). Three reasons why a government might decide to subsidize training are offered: (1) to promote economic growth, (2) to redistribute income and employment opportunities, and (3) to facilitate economic adjustments. In financial year 1981-82, approximately $200 million was spent by the DEIR for employment and training programs. Most of the funds were spent on programs to subsidize apprenticeship training and to provide work experience, training, and other assistance for long-term unemployed youth, Aboriginals, and the disabled. These activities address the first two goals. Few of the programs are oriented towards helping adult displaced workers prepare for other jobs. The major type of assistance provided by the Commonwealth for retrenched workers is the payment of unemployment benefits. The issue of whether subsidization of retraining opportunities would improve the operation of the Australian economy is examined. A key problem raised is the difficulty of identifying unemployed workers for whom retraining would be the most effective route to becoming reemployed. Show more