Children and the changing labour market: joblessness in families with dependent children

Abstract

For many Australians the labour market has become a less friendly place over the last two decades. One source of tension is the loss of full-time jobs. Since August 1975 the full-time employment-population ratio has fallen by 26 per cent among men and increased only one per cent among women. There has, however, been considerable part-time employment growth but not sufficient to offset full-time job losses. <P> The young have been particularly affected by this job loss and there are numerous studies of teenage unemployment. It is noticeable, however, that less attention has been directed to the impact of inadequate employment growth on families with dependent children. <p> Our objective in this essay is to move the focus away from measuring child poverty and direct it towards the fundamental labour market and social changes that are generating the rapid growth of government income support for children. The first question is to what extent has inadequate job growth over the last two decades found its way into families with dependent children? This is not a difficult question to answer and we provide the basic facts. Other subsequent questions that might be posed are more difficult. Why has so much joblessness located in families with dependent children, rather than elsewhere in the economy? What is the effect, on a child, of living for a substantial period in a family without work? To a large extent we can only conjecture as to the answers. <P> There is no doubt that the changing labour market has brought increasing disadvantage to many individuals, families and children (Miller 1997, Gregory 1993). But it has also brought a new and exciting range of opportunities to others. For example, there has been substantial growth in employment and relative wages of women and many children have shared in these advantages. They have access to economic resources well above that of their parents when they were children. But just as employment and income inequalities are growing in the adult labour market so it is likely that there are growing inequalities of life chances among children. The difference in economic resources brought to children living in two income families and those living in jobless families is considerable.