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Australian labour market flows over the business cycle

Author

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  • Chindamo, Phillip

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 and pro-cyclical than the job loss rate and is strongly pro-cyclical. The economic downturns in the early 1980s and early 1990s were associated with an up to 10 percentage point 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 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 skills shortages can be addressed. Moreover, policies that assist job search and skills development of workers are important, as is the search intensity of workers.

Suggested Citation

  • Chindamo, Phillip, 2010. "Australian labour market flows over the business cycle," MPRA Paper 35710, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:35710
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    File URL: https://mpra.ub.uni-muenchen.de/35710/1/MPRA_paper_35710.pdf
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    References listed on IDEAS

    as
    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, June.
    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.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Cezary A. Kapuscinski & Kyle Thomson, 2014. "Experiment Estimates of Indigenous Employment from Administrative Data," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 17(2), pages 139-161.

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    More about this item

    Keywords

    labor market flows; job finding rate; job search;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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