Job opportunities for less skilled workers have stagnated or declined, while
technological change and the globalisation of industry and trade has increased
the demand for highly skilled workers. This has been associated with a widening
distribution of earnings. Entrenched economic and social disadvantage Without
appropriate action now, Australia may be consigning large numbers of people to
an intergenerational cycle of significant joblessness. Australia already has one
of the highest levels of joblessness among families with children in OECD
countries (OECD 1998). In June 1999, about 860,000 children lived in a jobless
household. The available evidence suggests that children in families
experiencing long term joblessness are more likely to rely heavily on income
support as they grow up (Pech & McCoull, 1999). Long term economic and social
disadvantage has negative consequences for individuals, their families and the
broader community. Lack of paid employment during the prime working years, and
consequent reliance on income support, reduce current and lifetime incomes.
Participation in paid employment is a major source of self-esteem. Without it,
people can fail to develop, or become disengaged from, employment, family and
community networks. This can lead to physical and psychological ill health and
reduced life opportunities for parents and their children.
In recent times, an unequal distribution of employment gains has also seen
neighbourhoods with higher employment and income levels improve their position
relative to neighbourhoods with lower employment and lower average incomes
(Gregory & Hunter 1995). Just as with jobless families, the problems facing job
poor communities can be self-reinforcing. The most disadvantaged regions have
poorer educational, social and transport infrastructure as well as reduced
employment opportunities. Without intervention, the cycle of decline in
disadvantaged areas may continue despite employment gains in the economy
overall. Suitability of existing arrangements The current social support system
has its origins in a fundamentally different economic and social environment
when unemployment was low and generally short term and the most common family
type was a couple with children and a principal male breadwinner. The growth of
unemployment, the rising trend of lone parenthood and an aging population have
made income support a less exceptional circumstance. We have identified four
particular shortcomings with the current social support system: · Service
delivery arrangements are fragmented and not adequately focussed on
participation goals for all people of workforce age. · There is an overly
complex and rigid categorical array of pensions and allowances for people of
workforce age. · There are inadequate incentives for some forms of participation
and inadequate rewards for some forms of work. · The system does not provide
enough recognition of participation. Participation Support System Overview
Central to our vision is a belief that the nation’s social support system must
be judged by its capacity to help people participate economically and socially,
as well as by the adequacy of its income support arrangements.
