Job displacement in Australia and its consequences

This chapter examines the prevalence and consequences of job displacement in Australia. Australia’s flexible labour market shows up in a somewhat higher risk of job loss due to redundancy than in a number of other OECD countries for which comparable data is available. But it also shows up in a more rapid rate of re-employment. However, some groups of workers are more vulnerable to displacement, notably men, low-educated workers and short-tenure workers in small and medium-sized enterprises. Moreover, older workers, women and workers previously employed in casual jobs face greater difficulties finding a new job than other displaced workers. In addition, for a sizeable minority, the new jobs that displaced workers find are of poorer quality than the jobs they lost. Many displaced workers are not well equipped in terms of skills to switch to sustainable quality jobs in the service sector.