Daily Bulletin


Daily Bulletin

News

  • Written by Phillip O'Neill, Director, Centre for Western Sydney, Western Sydney University

This is the second of three articles based on newly released research on the impacts of a lack of local jobs on the rapidly growing Western Sydney region.

After 2016 – but before COVID-19, it should be said – Western Sydney experienced a mini jobs boom. Growth came from the region’s extraordinary surge in population, driven by record levels of immigration.

Recession will hit job-poor parts of Western Sydney very hard Centre for Western Sydney, Author provided The residential construction sector was flat-out. Also thriving were the population-serving sectors: health care and social assistance, education and training, retailing, and accommodation and food services. Recession will hit job-poor parts of Western Sydney very hard Centre for Western Sydney, Data: National Economics (NIEIR), 2018, Author provided Read more: Jobs deficit drives army of daily commuters out of Western Sydney But the tide has turned By late 2019 the construction boom had ended, as it always does. Now, with a COVID-19 recession, the capacity of the population-serving sectors to maintain jobs, let alone stimulate job growth, is greatly reduced. The mini jobs boom was good for Western Sydney’s long-suffering unskilled workers. Construction, for men, and for women the population-serving sectors – retailing and the domesticated side of the health, personal and child-care sectors – offered jobs without qualifications hurdles. Recession will hit job-poor parts of Western Sydney very hard Centre for Western Sydney, Data: National Economics (NIEIR), 2018, Author provided Now it’s back to insecure, short-term work stints in a dwindling pool of jobs. Often these are outside the regulated labour market, always needing a car, and competing with many others looking for the same work. The COVID-19 recession, like the early 1990s recession, will hit those Western Sydney neighbourhoods with large concentrations of unskilled workers as hard as anywhere else in Australia. Read more: The economy in 7 graphs. How a tightening of wallets pushed Australia into recession Even in the boom, local jobs were scarce Even before this recession, indeed at the height of Western Sydney’s 2016-18 jobs boom, employment access for these neighbourhoods was miserable. Using the Australian Bureau of Statistics’ (ABS) community-level statistical area, SA2, we find unemployment rates in 2018 were double and triple the metropolitan average. Recession will hit job-poor parts of Western Sydney very hard Centre for Western Sydney, Author provided In the Fairfield area, Fairfield City SA2 had 18.7% unemployment in 2018, Fairfield-East 16.0% and Fairfield-West 12.2%. In the Blacktown area, Bidwell-Hebersham-Emerton had 16.3% unemployment, Lethbridge Park-Tregear 12.9% and Mount Druitt-Whalan 11.3%. In the Cumberland local government area, Guilford-South Granville had 14.7% and Guilford West-Merrylands West 10.8%. In Liverpool, Ashcroft-Busby-Miller had 14.8% unemployment. Western Sydney’s jobs deficit is having broad and unacceptable consequences. Significant numbers of households record no paid work for long periods of time. Unemployment in the 15-24 age group typically exceeds 25%. About the same proportion of this age bracket has completely dropped out of education and the workforce, as our recent report on youth unemployment in Western Sydney explains. These areas have among the highest levels of socio-economic disadvantage in Australia. Joblessness has become inter-generational. It’s a result of poor education and training qualifications, patchy job experience, immobility, too many others seeking the same jobs, round and round. Recession will hit job-poor parts of Western Sydney very hard Centre for Western Sydney, Author provided Read more: A closer look at jobless youth in Western Sydney points us to the solutions Women are excluded from work Away from the job-starved neighbourhoods, poor access to jobs strikes at Western Sydney households in relatively hidden ways, but we can see it in low rates of labour force participation. For Australia, at the 2016 census, the male participation rate was 64.8% while the female rate was 8.9 points lower at 55.9%. In outer Western Sydney, in the greenfields mortgage belt, participation rates are significantly higher than national averages. In Camden local government area, for example, the rate in 2016 was 70.1% while The Hills recorded 68.0%. These rates indicate young dual-income households are prepared to move to the outer suburbs for affordable housing, in exchange for the long commute. In the old industrial districts of Western Sydney, however, participation rates are five or more percentage points below the national average. We see extremely low rates of female participation in three areas: Cumberland at 47.9%, Canterbury-Bankstown 47.7% and Fairfield with an extraordinarily low 43.2%. These rates compare poorly with female participation rates elsewhere in Sydney, such as Inner West at 65.5%, North Sydney 67.6%, Waverley 63.6% and Sutherland 61.5%. The difference in rates is arresting. Disadvantage flows through generations The obvious consequence of lower labour force participation is lower household income. Longer term, households with lower participation rates are likely to have lower retirement incomes. And the children in households where fewer adults are working tend to have impaired development and poor job prospects. We can see, therefore, Western Sydney’s jobs deficit can crush a neighbourhood, packing it with intense, persistent poverty. It can also make things very tough in households scattered across other suburbs. Poor access to jobs reduces workforce participation, especially among women, for all sorts of reasons, but with outcomes not compatible with the idea of Sydney as the generous, wealth-generating Emerald City. In a region that has a million workers but only 790,000 jobs, many workers migrate daily to other regions to find work. Others with less competitive CVs miss out completely. The consequences are grossly unfair. The COVID-19 recession will only make them worse. The Centre for Western Sydney has released three reports on Western Sydney’s growing jobs deficit. You can read the reports here.

Authors: Phillip O'Neill, Director, Centre for Western Sydney, Western Sydney University

Read more https://theconversation.com/recession-will-hit-job-poor-parts-of-western-sydney-very-hard-139385

Writers Wanted

$7.6 billion and 11% of researchers: our estimate of how much Australian university research stands to lose by 2024

arrow_forward

Trump's TikTok deal explained: who is Oracle? Why Walmart? And what does it mean for our data?

arrow_forward

What Australian Casinos Can Learn from Online Casinos in New Zealand

arrow_forward

The Conversation
INTERWEBS DIGITAL AGENCY

Politics

Did BLM Really Change the US Police Work?

The Black Lives Matter (BLM) movement has proven that the power of the state rests in the hands of the people it governs. Following the death of 46-year-old black American George Floyd in a case of ...

a Guest Writer - avatar a Guest Writer

Scott Morrison: the right man at the right time

Australia is not at war with another nation or ideology in August 2020 but the nation is in conflict. There are serious threats from China and there are many challenges flowing from the pandemic tha...

Greg Rogers - avatar Greg Rogers

Prime Minister National Cabinet Statement

The National Cabinet met today to discuss Australia’s COVID-19 response, the Victoria outbreak, easing restrictions, helping Australians prepare to go back to work in a COVID-safe environment an...

Scott Morrison - avatar Scott Morrison

Business News

How To Remove Rubbish More Effectively

It can be a big task to remove household rubbish. The hardest part is finding the best way to get rid of your junk. It can be very overwhelming to know exactly where to start with so many option...

News Company - avatar News Company

4 Tips To Pass Skills Certifications Tests

Developing the right set of skills is valuable not only to your career, but for life in general. You can get certified in these skills through obtaining a license. Without a certified license, y...

News Company - avatar News Company

How to Secure Home-Based Entrepreneurs from Cyber Threats

Small businesses are becoming a trend nowadays. The people with entrepreneurial skills and minds are adopting home-based businesses because of their advantage and ease of working from home. But...

News Company - avatar News Company



News Company Media Core

Content & Technology Connecting Global Audiences

More Information - Less Opinion