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Further implications
Today there are 700,000 unemployed, 1.1 million under-employed, and another 1 million hidden unemployed people. For this group of 2.8 million Australians looking for work, there are only 170,000 job vacancies across the country. This means there are about 17 jobseekers competing for each vacancy. Put another way, even if each and every vacancy were filled magically overnight, there would still be roughly 2.6 million job seekers left over. These figures were supplied by the Australian Unemployed Workers Union and were first posted in November, 2014
Despite these figures government policies have been adopted by each of the major parties which see unemployment as invariably a transitional state and which effectively penalise the unemployed.Numerous studies have been undertaken to explain the parsimonious attitude that governments and significant sections of the Australian population adopt toward the unemployed. These studies appear to indicate that attitudes toward the unemployed vary to some degree with life experience. A study conducted for the Australian Research Council in 2015 found that negative attitudes towards welfare recipients were more likely to be present among those who were less educated. People who have not experienced unemployment also appear to have a more negative attitude as those with life stability were not favourably disposed to welfare. The most commonly prevailing view was that welfare recipients were&lazy and not doing enough to find work.
Despite such findings there appears to be a growing sense within the community that Newstart is inadequate. A poll recently conducted for the Australian Council of Social Service (ACOSS) found that 72 percent of those surveyed supported a boost to the unemployment benefit, which has not risen in real terms in two decades. The Essential survey of 1,000 voters suggests there is support across party lines for an increase to the dole. Labor voters were most likely to back a proposal to lift Newstart, with 81 percent in favour and only 12 percent against such a plan. Coalition voters were split 66-22 in favour of an increase, while Greens supporters were also overwhelmingly in favour (79-12) about the idea.
This recent general support for an increase in Newstart is interesting given the generally negative attitude that appears to exist within the Australian population toward the unemployed. The answer to this apparent contradiction may be that after a quarter of a century with no growth in unemployment benefits, in real terms, Australia has now reached a point where the inadequacy of the payment is generally acknowledged within the electorate.
It will be interesting to see if attitudes toward the unemployed shift as more older Australians find their way unto unemployment benefits. Changes in the workforce and the required skill base which mean that older people no longer seen as having relevant experience is likely to result in a growing number of elderly unemployed. The current age pension eligibility age is 65 years and 6 months for any person born before 1954. This age is progressively increasing from 1 July 2019 depending on your date of birth. Retirement age will increase to 66 by July, 2019, to 66 and six months by July, 2021 and to 67 by July, 2023.
These changes will serve to increase the number of elderly unemployed living on Newstart until they can access the age pension.It remains to be seen whether humanitarian considerations or concern to limit government expenditure determine subsequent government policy. Should there be a Labor government after the May 18, 2019, federal election it will be interesting to see what the Newstart review Labor plans to implement will recommend.