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Workers

Australia's Hidden Workers: A Missing Piece in the Talent Crisis Puzzle

Strategic Insights

— 2 min read

Australia's job market is facing a paradoxical situation where employers are struggling to find skilled workers, but at the same time, there are millions of Australians who remain on the fringes of the labour market, known as the "hidden workers." This group consists of people who are underemployed, unemployed, or discouraged workers, who are willing and able to work but are not currently employed. Research has shown that hidden workers are predominantly women, with half of the discouraged workers aged over 41, and those with lower educational attainment are more likely to be discouraged or unemployed.

Key Takeaways:

  • Women are predominantly among the hidden workers, with half of the discouraged workers aged over 41.
  • Hidden workers often lack networks or live in disadvantaged areas, making it difficult for them to access job opportunities.
  • Underemployed workers make up 39.1% of the hidden workers, many of whom are working parents, especially mothers, who are juggling caregiving responsibilities.
  • Discouraged workers are most common among the youngest and oldest age groups, comprising 43.17% of hidden workers.
  • The hidden worker phenomenon is not just a numbers problem, but a systemic failure to connect untapped talent with unmet industry demand.
  • Businesses need to rethink rigid hiring practices and create pathways for those sidelined from work, while policymakers need to build targeted pathways that connect hidden workers' skills to shortage areas.
  • The Victorian state government has an initiative for a community council to help design better solutions for hidden workers.
  • Governments should link employment services with health and social protection systems to address compounding disadvantages faced by hidden workers.

Statistics:

  • There are over 2 million hidden workers in Australia, making up 21.1% of the population aged 15 and over (HILDA 2022 survey data).
  • Women are predominantly among the hidden workers, making up 52% of the underemployed and 55% of the unemployed (HILDA 2022 survey data).
  • Half of the discouraged workers are aged over 41, with 40% having a low level of education (HILDA 2022 survey data).
  • Underemployed workers make up 39.1% of hidden workers, with 55% of them being women (HILDA 2022 survey data).
  • Discouraged workers are most common among the youngest and oldest age groups, making up 43.17% of hidden workers (HILDA 2022 survey data).
  • The ABS defines "potential workers" as people who are willing and able to work, but does not capture the broader definition of hidden workers (ABS 2022 data).

Sources:

  • HILDA 2022 survey data
  • ABS 2022 data
  • The Conversation (Au and NZ) -- By Sora Lee, Lecturer in Ageing and End of Life, La Trobe University (2023)

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