Turnover analysis of unemployment in Australia

Abstract

Turnover analysis is concerned with flows in the labour market. This study involves analysis of the inflow and duration (outflow) aspects of unemployment in Australia. Very little work has been done on this for Australia, and much of the overseas work is severely restricted by data limitations and/or conceptual errors. In this study many of the problems previously encountered are avoided through the use of a suitable data base and appropriate methodology. Turnover analysis methodology are developed and applied to a subset of total unemployment, those in receipt of Unemployment Benefit payments. The turnover information obtained is used to consider why unemployment rates vary over time and between labour force groups, and on a broader scale the nature and determinants of structural change in the Australian labour market. The study finishes with some preliminary work on the interesting issue of the take-up of Benefits by the unemployed. From, carrying out turnover analysis of unemployment, many important insights into the nature and behaviour of unemployment and the labour market in general are obtained. It is apparent that this study is only a beginning, there is much work yet to be done in the area.