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New South Wales Public Employment Services 1887-1942

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New South Wales Public Employment Services 1887-1942 New South Wales Public Employment Services 1887-1942 Melissa Kerr A thesis submitted in partial fulfilment of the requirements for the degree of Doctor of Philosophy, Work and Organisational Studies, University of Sydney Business School, Submitted in March 2012. 1 Declaration Statement of Originality This is to certify that to the best of my knowledge, the content of this thesis is my own work. This thesis has not been submitted for any degree or other purposes. I certify that the intellectual content of this thesis is the product of my own work and that all the assistance received in preparing this thesis and sources have been acknowledged. Melissa Kerr 2 Abstract Australian historical scholarship has traditionally neglected public employment services as an area of research. However, in recent years as the State has repositioned itself in the labour market the role of public employment services has become a popular area of debate. While contemporary scholars have contributed to these debates, their historical counterparts have been slower to follow suit. In overcoming this neglect, this thesis provides an historical examination of one of the earliest forms of state intervention into the Australian labour market: public employment services. This study examined the establishment and operations of public employment services in NSW from 1887 until 1942, when they were transferred across to the Federal Department of Labour and National Service, to comply with Commonwealth Wartime legislation. Within the Australian contemporary scholarship, public employment services have been conceptualised according to three dominant economic traditions: neo-classical economics, Keynesian economics and the writings of W.H. Beveridge. However, these traditions are predicated on inherent assumptions and predetermined outcomes, all of which fail to identify the origins and development of public employment services in Australia. Neo-classical economists have been the most critical arguing that the public provision of employments services is both inefficient and ineffective. Within the historical literature, Institutional economists in the United States have been influential in identifying the socio-economic factors that led to the development of the public employment services: asymmetrical labour market information and fraudulent acts perpetrated by private employment registries, all of which distorted the functioning of the labour market. By adopting the institutional economic approach, this thesis found that it was these socio-economic concerns that led to the introduction of the public employment service in NSW. This thesis disputes the claims of the neo-classical economists that the public employment services were both inefficient and ineffective, instead it argues that the public employment service played a pivotal role in the development of the NSW economy performing the role of labour market intermediary: channelling information and bringing together those wishing to buy and sell labour; while safeguarding those vulnerable in the labour market: the unemployed. 3 Acknowledgements This thesis is dedicated to my beautiful children Phoebe and Oscar. You are both amazing and truly inspire me. While I know that you are both as relieved as I am that I have finally completed this work, I hope my dedication will inspire you in your own lives. I would like to take to this opportunity to express my gratitude to a great many people who assisted me in completing this thesis. Firstly and most importantly, I would like to thank my supervisor, Greg Patmore, for all his patience, help, enthusiasm and encouragement. Greg has always shown incredible enthusiasm for my research and I cannot thank him enough for all his help and support. I would also like to thank my assistant supervisor Harry Knowles for his encouragement and help. Like Greg, Harry has always more than willing to listen and provide advice and guidance for which I am very grateful. I would also like to thank all the staff from Work and Organisational Studies, many whom also assisted me in my research. There have been many others who have assisted me in my research. I would like to thank the Staff of the State Library of NSW, the British Library and in particular, the staff in the Social Science reading rooms. I would also like to thank the staff from both the National Library and National Archives in Canberra. I would also like to thank Merilyn Bryce and Margaret Walters for their assistance. I have also been very fortunate to have received financial support from the Faculty of Economics at the University of Sydney and the Julian Small Foundation. I am most grateful for this financial support as it has enabled me to undertake my research. Finally, I would like to thank my husband Gary and my Mum for their support and encouragement throughout the process. Gary you have been amazing in taking our children out every weekend while I worked and I want you to know that I do appreciate it very much. 4 Contents Declaration ................................................................ 2 Abstract ..................................................................... 3 Acknowledgements ................................................... 4 Contents .................................................................... 5 Index of Tables ......................................................... 7 Chapter 1 Introduction .............................................. 9 Aims of this Thesis ................................................................................................................ 9 Research Plan and Methodology: ........................................................................................ 15 Thesis Structure ................................................................................................................... 18 Chapter 2 Literature Review ................................... 21 Introduction .......................................................................................................................... 21 Concepts and Definitions ..................................................................................................... 23 Economics Perspectives on Public Employment Services .................................................. 28 Against State Intervention: Neoclassical Economics ...................................................... 29 State Interventionists: Beveridge, Keynesian Economics and Institutional Economics .. 38 Historical Literature on the Origins of Public Employment Services ................................. 46 International Literature .................................................................................................... 46 Australian Literature ........................................................................................................ 53 Conclusion ........................................................................................................................... 58 Chapter 3 Casual Labour Board .............................. 61 Introduction .......................................................................................................................... 61 Economic and Industrial Conditions .................................................................................... 62 Late Nineteenth Century Political Landscape...................................................................... 66 Origins and Members of the Casual Labour Board ............................................................. 68 Operations of the Casual Labour Board ............................................................................... 71 Government Relief Work ................................................................................................. 73 Private Employment......................................................................................................... 76 Registrations ........................................................................................................................ 77 Expenditure of the Casual Labour Board............................................................................. 78 Criticisms of the Casual Labour Board ................................................................................ 80 The Termination of the Casual Labour Board ..................................................................... 86 Conclusion ........................................................................................................................... 87 Chapter 4 Government Labour Bureau ................... 89 Introduction .......................................................................................................................... 89 Economic and Industrial Context......................................................................................... 91 Political Landscape .............................................................................................................. 98 Origins and Influences of the Government Labour Bureau ............................................... 101 Operations .......................................................................................................................... 107 1893 Select Committee of the Legislative Assembly into the Workings of the Government Labour Bureau ................................................................................................................... 110 5 Gold Fossicking ................................................................................................................
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