Globalisation and the marketisation of unemployment assistance in Australia

Abstract

Economic globalisation and liberalisation has increased labour market risk for Australians and has eroded the wage earners' welfare state. This has increased the demand placed on Australia's cash assistance program for the unemployed. Instead of increasing its generosity to compensate workers for increased exposure to risk, successive governments have tightened eligibility through the use of activity tests and work enforcement strategies. The combination of eligibility tightening with employer targeted training and liberalisation of the income test has led the marketisation of unemployment protection. Its reforms have been designed to increase its congruency with the post-liberalisation labour market, rathan than to protect workers from its vagaries.