8: Income and employment Flashcards
(23 cards)
Rationale
Including a topic of income and employment is essential in a course that focuses on social issues for human service and social workers because the results of a lack of income and employment contribute to the full range of social problems that people might experience. Not having enough money creates difficulties in:
providing for yourself and your family,
accessing adequate housing and healthcare and
taking advantage of educational opportunities.
Prevention and remediation
This is a tension that underlies policy in relation to this issue and the choice a government makes will usually demonstrate their ideological position on income and employment.
A preventative approach might focus on programs that aim to:
assist people to stay in employment,
access training programs,
attend school,
access medical services and
receive a living wage.
A remediation approach might see programs that focus on providing:
income support,
emergency housing,
child protection,
domestic violence services,
mental health services and
food vouchers
Employed
Working for one hour or more per week for pay or profit.
Unemployed
Not working more than one hour in the reference week,
Actively looking for work in the previous four weeks, and
Be available to start work in the reference week.
Labour force
The total number of people in Australia who are willing and able to work.
Employed + unemployed = labour force
Unemployment rate
The number of unemployed people in the labour force.
Number of unemployed / labour force = unemployment rate
Participation rate
The percentage of the total population who are in the labour force.
Excluding:
Under 15
Retirees
Underemployed
Currently employed but willing and able to work more hours.
Underemployment rate
The percentage of the labour force who would prefer more work
Underemployed / labour force = underemployment rate.
Labour force underutilisation rate
Those in the labour force seeking more work.
Underemployed + unemployed = underutilised
Underutilised / labour force = underutilisation rate
Harvester Judgement
set a minimum wage for unskilled labourers of 2 pounds, 2 shillings per week. Justice Higgins set the minimum weekly wage by establishing the cost of living - the amount an average worker was paid for food, shelter and clothing. The judgement was designed to ensure that a worker could keep his wife and children healthy and comfortable. It did not cover women workers as it was assumed either their father or their husband would support them. This approach to wages is now known as ‘wage fixing’. Of the 37 OECD (Organisation for Economic Co-Operation and Development) countries, Australia has the highest minimum wage at USD12.60/hour
Establishing a high minimum wage is a cornerstone of Australian welfare policy and attempts to reduce the likelihood of ‘working poor’.
Relevant Legislation includes three Acts:
The first is the Social Security Act 1991 and the Social Security (Administration) Act 1999. This Act aims to provide for the payment of certain pensions, benefits and allowances, and outlines eligibility processes for determining who gets what.
The second was the Work Relations Act of 1996, which related to workplace relations, and other purposes.
The Work Relations Act has since been repealed and replaced with the Fair Work Act (2009), which relates to workplace relations such as the rights and responsibilities of employers and employees.
The Federal government does not have sole responsibility for all matters relating to income and employment. There are a range of additional stakeholders, including:
Australian Bureau of Statistics (ABS) – surveys the distribution of income via the Census and at frequent intervals
Centrelink – delivers income support payments (Centrelink is part of Services Australia which is also responsible for Medicare and Child Support payments and services)
Government Departments such as Department of Education and Department of Employment (formerly Department of Education, Employment and Work Relations)
Job Network agencies - eg Mission Australia, Sarina Russo Job Access, Centrecare Jobs, Max Employment, IPA Personnel.
Unions
Employer and employee groups - eg Chamber of Commerce; Retail Industry Association
Taxpayers
Justice Higgins outlined the following as essential for a decent standard of living:
civilised habits
frugal comforts
decent shelter
partitioned rooms
fresh air
water to wash in
enough wholesome food
provision for ‘rainy days’
The United Nations defines absolute poverty:
“a condition characterised by severe deprivation of basic human needs, including food, safe drinking water, sanitation facilities, health, shelter, education and information. It depends not only on income but also on access to services”
READING: The politics of poverty in Australia in Social Alternatives
Overview
Baum and Duvnjak critically examine poverty in Australia, emphasizing that despite the nation’s wealth, significant portions of the population live below the poverty line. They argue that poverty is not merely a result of individual failings but is deeply rooted in political decisions and systemic structures.
Key Points
1. Poverty Statistics and Trends
In 2012, after housing costs, 12.8% of Australians (approximately 2.27 million people) lived below the poverty line.
Children are disproportionately affected: in 2010, 17.3% (around 575,000) of all children were living in poverty.
Specific groups, such as single-parent households, Indigenous Australians, and the unemployed, face higher poverty rates.
- Structural Causes of Poverty
The authors highlight that political choices, including welfare policies and economic reforms, significantly influence poverty levels.
They critique the shift towards neoliberal policies, which prioritize market solutions and individual responsibility, often at the expense of social welfare programs.
- Impact of Welfare Reforms
Recent policy changes, such as moving single parents from the Parenting Payment to the lower Newstart Allowance, have exacerbated financial hardships for vulnerable groups.
Such reforms reflect a broader trend of reducing welfare support, leading to increased poverty and inequality.
- Need for Policy Reorientation
Baum and Duvnjak advocate for a rights-based approach to social policy, emphasizing the government’s responsibility to ensure a basic standard of living for all citizens.
They call for policies that address the root causes of poverty, including income inequality, lack of affordable housing, and inadequate social services.
Conclusion
The article underscores that poverty in Australia is not an inevitable outcome but a consequence of deliberate policy choices. Addressing poverty requires a fundamental shift in political will and policy direction, focusing on equity, social justice, and the well-being of all citizens.
Relative poverty
means poverty that is relative to the standard of living of the country in which it occurs. The poverty line is relative poverty as it is calculated differently depending on where you live. The definition used in Australia is based upon other international definitions and states that a person on less than 50% of the median income (after housing costs) is below the poverty line (ACOSS). As of 2023 (ACOSS), the poverty line is $489 a week for a single adult living alone and $1,027 a week for a couple with two children.
Becoming unemployed is only one factor that might contribute to the likelihood of living in poverty. Others include:
the loss of a business,
unexpected bills such as large electricity bills,
limited educational experiences,
housing affordability, addictions, discrimination,
disability,
family breakdown,
old age and
a poor start in life
In Australia, the groups most likely to experience poverty
Indigenous people, single parents, the elderly, people living with a disability and the working poor.
The Salvation Army (2010) report identified key issues that need to be addressed to address poverty, including:
A review of the social security system which doesn’t provide adequate support to people
Increased mental health funding and focus
Specific measures to address Indigenous inequality
Educational options for disengaged young people
Skill development for single parent families
