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7KLV SXEOLFDWLRQ LV FRS\ULJKW 2WKHU WKDQ IRU WKH SXUSRVHV RI DQG VXEMHFW WR WKH FRQGLWLRQV SUHVFULEHG XQGHU WKH &RS\ULJKW $FW QR SDUW RI LW PD\ LQ DQ\ IRUP RU E\ DQ\ PHDQV HOHFWURQLF PHFKDQLFDO PLFURFRS\LQJ SKRWRFRS\LQJ UHFRUGLQJ RU RWKHUZLVH EH UHSURGXFHG VWRUHG LQ D UHWULHYDO V\VWHP RU WUDQVPLWWHG ZLWKRXW SULRU SHUPLVVLRQ (QTXLULHV VKRXOG EH DGGUHVV WR WKH SXEOLVKHUV Uhiyr‚s8‚‡r‡† Preface...... 7 Acknowledgments...... 8 Executive Summary...... 9 1.Introduction...... 1 2.Literature Review...... 6 Introduction...... 6 Unemployment...... 6 Immigrants and the Australian labour market...... 10 Unemployment and immigrants...... 11 The Human Capital Perspective...... 12 The Segmentation Perspective...... 12 Retrenchments...... 13 Life-History Method...... 15 Conclusion...... 16 3.Unemployment is a Dilemma...... 17 Juan...... 18 Gül...... 19 Zimin...... 22 Redesh...... 24 Maria...... 26 Binh...... 28 Conclusion...... 30 4.Unemployment and the Overseas Born...... 31 An overview...... 31 A comparison between the employed and unemployed populations...... 35 A comparison amongst birthplace groups...... 35 Educational background...... 37 Occupational background...... 39 Factors associated with unemployment...... 41 Individual countries of birth...... 42 Demographic factors...... 43

/R\DOW\LVD2QH:D\6WUHHW L Educational qualifications...... 43 English proficiency...... 45 Length of residence in ...... 46 Conclusion...... 46 5.The Emergence of Long-term Unemployment...... 49 The Australian labour market in the 1980s...... 49 Changes in unemployment over time14...... 53 The emergence of long-term unemployment...... 55 Employer behaviour and the LTU...... 58 Survey evidence...... 58 Case study evidence...... 60 Conclusion...... 67 6.Long-term Unemployment Amongst NESB Immigrants...... 69 The NESB long-term unemployed...... 69 The incidence of long-term unemployment...... 70 Other characteristics of the long-term unemployed...... 71 Labour market characteristics...... 77 Multivariate analysis...... 78 A gender dimension...... 80 The hidden unemployed...... 83 Conclusion...... 85 7.Rational Labour Market Behaviour ...... 87 Introduction...... 87 The Irreducible Social Dimension of Life in the Labour Market...... 87 Constructing the Characteristics of the NESB Long-term Unemployed...... 89 Education...... 94 The Decision to Migrate...... 98 Job Search Strategies of the Long-Term Unemployed...... 99 Identity, Work and Unemployment...... 99 (Local) Experience...... 102 Training and Skill Formation...... 103 Networks...... 104 Conclusion...... 105

/R\DOW\LVD2QH:D\6WUHHW LL 8.Policy Discussion...... 106 The OECD approach to unemployment...... 106 Background...... 106 The OECD Jobs Strategy...... 107 A Critique...... 108 The Australian neo-classical analysis...... 110 An Australian Keynesian approach...... 112 Public sector expansion...... 112 Manufacturing...... 113 Labour Market Programs - an assessment...... 114 Appendix 1...... 116 Bibliography...... 125

/R\DOW\LVD2QH:D\6WUHHW LLL Gv†‡‚ssvtˆ r† Figure 4.1: Taxonomy of the Australian Labour Market, 1993 - persons...... 32 Figure 4.2: Taxonomy of the Australian Labour Market, 1993 - males...... 33 Figure 4.3: Taxonomy of the Australian Labour Market, 1993 - females...... 34 Figure 4.4: Occupational background of the unemployed by birthplace category, Australia, 1993...... 40 Figure 4.5: Participation and unemployment rates by birthplace, Australia, 1991 ...... 43 Figure 4.6: Unemployment rates by English proficiency and birthplace, Australia 1991...... 45 Figure 5.1: Labour force participation rates, 1981 and 1991...... 51 Figure 5.2: Unemployment rates, 1981 and 1991...... 52 Figure 5.3: Average duration of unemployment, Males, Australia, 1978-95 (number of weeks unemployed)...... 55 Figure 5.4: Average duration of unemployment, Females, Australia, 1978-95 number of weeks unemployed)...... 56 Figure 5.5 Relationship between unemployment rate and incidence of LTU, 1978 to 1996...... 57 Figure 5.6 Constro workforce, 1984 to 1994...... 63 Figure 6.1 Unemployment rates and incidence of LTU, Australian-born and NESB males, 1978 to 1995...... 71 Figure 6.2 Occupational change for males, 1961 to 1990s, Australia...... 81 Figure 6.3 Occupational change for females, 1961 to 1990s, Australia...... 81

Gv†‡‚s‡hiyr† Table 4.1: Characteristics of NESB persons in the labour market, Australia 1993 ...... 20 Table 4.11: Unemployment and participation rates for immigrants with tertiary qualifications who speak English well or very well, Australia 1991...... 35 Table 4.2: Comparison between Employed and Unemployed Persons, Birthplace Characteristics...... 36 Table 4.3: Unemployment Rates for Various Birthplace Groups...... 37 Table 4.4: Post-school qualifications - labour force compared with unemployed for different birthplace groups...... 38 Table 4.5: Unemployment rates for various categories of post-school qualifications, Australia, 1993...... 38

/R\DOW\LVD2QH:D\6WUHHW LY Table 4.6: Unemployment rates for subcategories within different birthplace groups...... 39 Table 4.7: Unemployment rates according to prior occupation, NESB and ESB immigrants...... 39 Table 4.8: Occupational background of the unemployed, by birthplace group.....40 Table 4.9: Unemployment and participation rates by post-school educational qualifications and birthplace, Australia 1991...... 44 Table 4.10: Unemployment and participation rates for immigrants by English proficiency, Australia 1991...... 46 Table 4.12: Tertiary educated persons working in selected occupations, NESB proportions...... 47 Table 5.3: Industry background of long-term unemployed, Australia, 1993 (percentage of persons in each industry division)...... 51 Table 5.4: Occupational background of long-term unemployed, Australia, 1993 (percentage of persons in each occupational group)...... 51 Table 5.1: Odds ratios of being unemployed for teenagers by birthplace category, 1981 and 1991...... 54 Table 5.2: Relative unemployment situation of NESB immigrants, 1981 and 1991...... 54 Table 5.5: Characteristics of low skilled blue-collar workplaces, 1989 (percentage of workplaces)...... 59 Table 5.6: Market situation of low skilled blue-collar workplaces, 1989 (percentage of workplaces)...... 60 ...... 63 Table 6.1: Average duration of unemployment 1978-1995 (number of weeks).....69 ...... 71 Table 6.2: Incidence of LTU by various characteristics (percentage of the unemployed who are long-term unemployed)...... 71 Table 6.3: Incidence of LTU by various characteristics for males (percentage of the unemployed who are long-term unemployed)...... 76 Table 6.4: Incidence of LTU by various characteristics for females (percentage of the unemployed who are long-term unemployed)...... 76 Table 6.5: Duration of previous job by birthplace and unemployment category, Australia 1993...... 77 Table 6.6: Characteristics of those marginally attached to the labour force, Australia 1993 (percentage)...... 83 Table A1.1: Odds ratios of being unemployed, Australia 1991...... 116

/R\DOW\LVD2QH:D\6WUHHW Y Table A1.2: Odds ratios of being unemployed, Australia 1993...... 117 Table A1.3: Odds ratios of being unemployed, Australia 1993...... 117 Table A1.4: Odds ratios of being unemployed for males, Australia 1993...... 118 Table A1.5: Odds ratios of being unemployed for females, Australia 1993...... 118 Table A1.6: Participation rates by age and birthplace, Australia 1991...... 119 Table A1.7: Unemployment rates by age and birthplace, Australia 1991...... 119 Table A1.8: Odds ratios of being long term unemployed for males, Australia 1993 ...... 120 Table A1.9: Odds ratios of being long term unemployed for females, Australia 1993...... 121 Table A1.10: Changes in women’s employment by industry, Australia, 1981to 1991 NESB proportions for top 20 industry subdivisions...... 122 Table A1.10: Changes in women’s employment by industry, Australia, 1981to 1991 NESB proportions for top 20 industry subdivisions (CONTINUED)...... 123 TableA1.11 Odds ratios of being marginally attached to the labour force for females, Australia 1993...... 124

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