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Rural views to decide election outcome

By Ben Rees - posted Wednesday, 1 September 2010


  • manufacturing fell from 18.4 per cent to 9.5 per cent;
  • rural employment fell from 5.9 per cent to 3 per cent;
  • services employment rose from 73.5 per cent to 85.6 per cent;
  • mining rose marginally from 1.5 per cent to 1.6 per cent.

Structural change from industry deregulation and labour market reform has spawned another phenomenon - underemployment. In 1983, part time employment comprised 17 per cent of total employment. By 2010, part time employment is 30 per cent of total employment. Accompanying this phenomenon is under employment. The under employed are employed persons seeking more work than is available to them.

The ABS uses a recognised international labour market measure to consolidate unemployment and under employment: under utilisation of the labour market rate. By adding the unemployed to under employed rates, the underutilisation rate becomes a performance measure of two and a half decades of structural reforms. Underutilisation of the labour force bridges rural neglect, under employment, unemployment and political dissent.

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From ABS Labour Market Statistics 6105, July 2009, p15

Reading from the graph, the lowest point on the graph is May 1981 at 8.4 per cent. In 1983, Fraser was sacked with the labour force underutilisation rate at 14 per cent. In 1991, the rate peaked at 11 per cent and Hawke was replaced by Keating. Late 1992 early 1993, the rate peaked at 18 per cent. When Keating was sacked in 1996, it was stuck at 14.5 per cent -15 per cent. From February 2009-2010, the national rate was stuck at around 13.6 per cent - 13.8 per cent.

In Queensland and NSW where the government received electoral retribution, the rates in February 2010 were 14.4 per cent and 14.1 per cent respectively. In May 2010, the national rate had fallen to 12.2 per cent while Queensland and NSW were 12.5 per cent and 12.8 per cent respectively. For these people, economic security, work opportunities, cost of living, and interest rates sharply focus political minds and views. Their electoral distribution becomes critical in the final seat count.

The situation

Over 25 years, simplistic economic philosophies have failed to deliver an equitable distribution of income, adequate employment opportunities, and rising living standards to a substantial percentage of the labour force. In rural Australia, policy failure is everywhere to be seen.
In a small number of rural electorates, independents have replaced the major parties. Three of these are in a balance of power position. Entrenched economic philosophies responsible for an inefficient use of the labour force and rural neglect must lie at the centre of sensible reform. These philosophies have simply transferred power, income and wealth from the politically powerless to the politically powerful. Any pretence to social justice has been exposed in the 2010 election for every one to see. Time for reform is here and the opportunity should not be squandered.

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About the Author

Ben Rees is both a farmer and a research economist. He has been a contributor to QUT research projects such as Rebuilding Rural Australia. Over the years he has been keynote and guest speaker at national and local rural meetings and conferences. Ben also participated in a 2004 Monash Farm Forum.

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