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Australian Labour Market Flows over the Business Cycle

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  • Chindamo, P.

Abstract

This paper analyses the behaviour of Australian labour market transition rates. Since the early 1980s, the job-finding rate has been significantly more volatile than the job-loss rate and it is strongly pro-cyclical. The economic downturns of the early 1980s and early 1990s were associated with up to a 10 percentage points decline in the average job-finding rate. In comparison, the recent economic downturn was associated with a less significant decline in the job-finding rate. During these periods, the job-loss rate has shown less significant volatility. The findings of this paper suggest that the job search activities of workers are potentially more relevant in explaining the volatility of labour market variables such as the unemployment rate, and whether emerging skill shortages can be addressed. Policies that assist job search and the skills development of workers are important, as is the intensity of workers' search activity.

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File URL: http://hdl.handle.net/2328/25993
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Bibliographic Info

Article provided by National Institute of Labour Studies in its journal Australian Bulletin of Labour.

Volume (Year): 37 (2011)
Issue (Month): 1 ()
Pages: 127-137

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Handle: RePEc:fli:journl:25993

Note: Chindamo, P. 2011. Australian Labour Market Flows over the Business Cycle. Australian Bulletin of Labour, Vol. 37 No. 1, pp.127-137.
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  1. Shigeru Fujita & Garey Ramey, 2006. "The cyclicality of job loss and hiring," Working Papers 06-17, Federal Reserve Bank of Philadelphia.
  2. Phillip Chindamo & Lawrence Uren, 2010. "Vacancies and Unemployment in Australia," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 43(2), pages 136-152.
  3. Robert Dixon & John Freebairn & G. C. Lim, 2004. "A Framework For Understanding Changes In The Unemployment Rate In A Flows Context: An Examination Net Flows In The Australian Labour Market," Department of Economics - Working Papers Series 910, The University of Melbourne.
  4. Roberts, Anna M. & Pannell, David J. & Doole, Graeme J. & Vigiak, Olga, 2010. "Agricultural land management strategies to reduce phosphorus loads in the Gippsland Lakes, Australia," Working Papers 102454, University of Western Australia, School of Agricultural and Resource Economics.
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