A FOCUS ON SKILLS WILL ALLOW AUSTRALIA TO REAP FRUITS OF ITS LABOUR PROFESSOR JEFF BORLAND SUGGESTS HOW AUSTRALIA CAN RE-SKILL ITS WORKFORCE, AND BUSTS some MYTHS ON IMMIGRATION AND JOBS any economic commentators with an interest in labour markets seem bedevilled by a bogeyman: the rise ofAsia. Whatever the problem that has arisen in labour markets in Australia in the past 20 years, the elfect of increasing integration with Asia has usually been the explanation that is reached for First. Declining real earnings for low—skilled workers? Well, that must be the efiect of more imports produced using low—wage labour in China. Higher rates of unemployment? Mmm, that could only be happening because of higher rates of Asian immigration. Falling employment of clerical workers and middle managers? Surely that has to be the result ofolf-shoring jobs to the Indian IT sector. WHERE'S THE EVIDENCE? In some ways, this focus on Asia is understandable. Signs of our closer integration with Asia are all around us — in the changing composition of the Australian population, in all the talk ofa mining boom, every time we buy a whitegood. Yet for all the concern, there is very little evidence that integration with Asia is having the dire effects often described. Studies of international trade undertaken by the Reserve Bank and Productivity Commission have employment in Australia. Only within a subset of St that use labour-intensive production methods — as textiles, clothing and footwear ~ can relatively adverse employment effects ofgrowing competitior imports be seen. IMMIGRANTS DON'T TAKE JOBS The story with immigration has been similar Junankar and Glenn Withers showed in a series ofres papers written in the 19905 that immigration has net effect on the labour market in Australia. An immigrant may mean an extra job is needed, but 2 means an extra source of demand for goods and se produced in Australia. So, the effects on labour de and labour supply largely wash out. And while stores ofcall-centre and IT processin being sent offshore to Asia may make interesting re For the supplement sections ofour weekend newsp; it just doesn't seem that the magnitude of these e are substantial enough to make a big difference to 14 markets. Instead, it is technological change that ap to be the main driver ofthe decline in clerical and administrative jobs. FIRST PRINCIPLES The story of Australia’s increasing integration Asia, in fact, seems to be very much as you would pi from a knowledge of first—year economics. 24 E Australia's Fnoaoempni with Am Ir‘(‘In¢r I... (‘--Z.L J—ll '
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A FOCUS ON SKILLS WILL ALLOWAUSTRALIA TO REAP FRUITS OF ITS LABOURPROFESSOR JEFF BORLAND SUGGESTS HOW AUSTRALIA CAN RE-SKILL ITSWORKFORCE, AND BUSTS some MYTHS ON IMMIGRATION AND JOBS
any economic commentators with an interest inlabour markets seem bedevilled by a bogeyman:the rise ofAsia.
Whatever the problem that has arisen in labour marketsin Australia in the past 20 years, the elfect of increasingintegration with Asia has usually been the explanationthat is reached for First.
Declining real earnings for low—skilled workers? Well,that must be the efiect of more imports produced usinglow—wage labour in China.
Higher rates of unemployment? Mmm, that couldonly be happening because of higher rates of Asianimmigration.
Falling employment of clerical workers and middlemanagers? Surely that has to be the result ofolf-shoringjobs to the Indian IT sector.
WHERE'S THE EVIDENCE?In some ways, this focus on Asia is understandable.
Signs of our closer integration with Asia are all aroundus — in the changing composition of the Australianpopulation, in all the talk ofa mining boom, every timewe buy a whitegood. Yet for all the concern, there is verylittle evidence that integration with Asia is having thedire effects often described.
Studies of international trade undertaken by theReserve Bank and Productivity Commission have
employment in Australia. Only within a subset of Stthat use labour-intensive production methods —as textiles, clothing and footwear ~ can relativelyadverse employment effects ofgrowing competitiorimports be seen.
IMMIGRANTS DON'T TAKE JOBSThe story with immigration has been similar
Junankar and Glenn Withers showed in a series ofrespapers written in the 19905 that immigration hasnet effect on the labour market in Australia. Animmigrant may mean an extra job is needed, but 2means an extra source of demand for goods and seproduced in Australia. So, the effects on labour deand labour supply largely wash out.
And while stores ofcall-centre and IT processinbeing sent offshore to Asia may make interesting reFor the supplement sections ofour weekend newsp;it just doesn't seem that the magnitude of these eare substantial enough to make a big difference to 14markets. Instead, it is technological change that apto be the main driver ofthe decline in clerical andadministrative jobs.
FIRST PRINCIPLESThe story of Australia’s increasing integration
Asia, in fact, seems to be very much as you would pifrom a knowledge of first—year economics.
24 E Australia's Fnoaoempni with Am Ir‘(‘In¢r I... (‘--Z.L J—ll '
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