Australian Labour Market - Case Study Example

According to the Australian Bureau of statistics (2009) Knowledge work plays a very imperative role in the overall growth of any economy. This usually necessitates that stakeholders within a nation monitor the growth of knowledge work therein. This is more so in relation to the factor that may adversely or positively affect knowledge wok. This is carried out in order to put in place proper measures that will ensure growth. Australia’s labour market has been facing challenges in the recent past due to the global economic crisis. (ABS, 2009) Despite this situation, there have been optimistic arguments about the growth of knowledge work therein. This paper therefore critically analyses whether the optimistic arguments about the growth of knowledge work in the nation have been realized. This essay focuses on the debates about skill and other changes in the labour market such as the growth of the services sector among other factors. (Thompson, 2007) Many scholars have argued that there is improved growth in knowledge work in many developed economies. According to a labour force survey carried out by the Australian Bureau of Statistics, an evaluation of aspects of occupational change in the nation was necessary. This was carried out to evaluate the precision of these assertions. Disaggregation of data shows that the apparent growth of knowledge work in the nation emanates from a substantial component where there has been an increase in the occupations that are low level in nature. (O'Brien, 2006) A survey carried out in the Australian labour market showed various aspects of knowledge and skill as major determinants in the growth of knowledge work. The data accrued in the research showed that it was evident that ordinal skill among employees highly correlated to the cognitive ability required for the specific job. (Hislop, 2008) The research showed that employment opportunities in the labour market grew at a fast rate in sales jobs, service and other professional jobs. It was however noted that there was also a large percentage growth in low level jobs in the information sector. This should not be equated to growth in overall knowledge work in the nation. There were various factors shown that made people to change from one job to the other. It was noted that approximately seven out of ten people had shifted from one job to the other. Majority of the people were noted to have enhanced their level of skill over the same period of time. (Hislop, 2008) Education and the level of one’s skills therefore played a great role in determining whether one would remain in knowledge job having had it as his first job. Current research shows that vocational education and training are quite essential if one is to secure a knowledge job in Australia. Debates in Australia have been put forth by various stakeholders in the past years in regards to the labour market. These debates have put forth the need for higher echelon of skills in the nation. It was highly argued that this was quite necessary if the nation was to meet the pressure put forth by global standards in business ventures. It was also highly argued that there was dire need for higher levels of skills to meet the technical needs in the Australia’s labour market. The argument has also been that Australia requires a qualification system that is quite rigorous in nature. This is whereby the system will be in a position to provide value to the stakeholders in the labour market such as employers, employees, students and investors. (ABS, 2009) Some of the arguments in these debates have been that Australia should not use qualifications as a measure of skills in the labour market. Optimistic arguments in this case have asserted that acquired skills need to reflect the individual’s qualifications in one way or the other. (O'Brien, 2006) A thorough analysis of the optimistic arguments about the growth of knowledge work reveals that they have not yet been realized. This is more so in relation to the debates about skills in the Australian labour force. It is quite clear that the projected growth in skills in the labour market in Australia have not advanced to meet the demand in the market. (WEF, 2006) This is considering the fact that about fifty percent of the entire adult population in the nation is still low skilled. This has had its concurrent negative effects on the overall growth of knowledge work in Australia. It therefore clearly indicates that the optimistic arguments about the growth of knowledge work in Australia have not yet been realized. (Hislop, 2008) The Australian Qualifications Framework (AQF) however gives a basic framework where potential employee qualifications can be thoroughly analyzed. It is however important to note that with the on going Council Of Australian Governments (COAG) restructuring, the changing needs in Australia’s needs of skills in its industry will be easily achieved. This is quite practical a framework that is rigor in nature is put in place and used effectively. (ABS, 2009) On the other hand, one can argue that the optimistic arguments on knowledge work have been realized in Australia. This is considering the fact that different levels of skill are usually required for diverse job descriptions. In some industries in Australia’s labour market, it is required that a potential employee has an advanced diploma or even a diploma so as to perform technician work within the organization In this case, the level of skills or qualifications for that matter correlates to the job description. Therefore it can be argued that the optimistic arguments about the growth of knowledge work in Australia have been realized. (Hislop, 2008) Further analysis also shows that there have been various optimistic arguments about the growth of the services sector in Australia. It has been argued that the service sector in Australia will experience measurable growth by the year twenty twenty. In this case, it is argued that the service industry will be in a position to offer employment opportunities to a large percentage of people within the nation. There are various types of services that are currently being offered in the Australian labour market. They include teaching, medical services like nursing and even counselling. (WEF, 2006) It has been argued that the services sector within the nation will play a great role in the improvement and overall sustainability of the Australian economy. It is quite imperative to note that Australian service industries are predominantly centralized on production of intangible utilities in the market. (O'Brien, 2006) A critical examination of this argument clearly illustrates that it has been realized in the labour market. The services sector in Australia has positively impacted the Australian economy as compared to its counterpart of products sector. According to Greek the service industry is currently contributing up to a total of eighty five percent of the employment in the nation. As earlier on illustrated, it is also quite central in contribution to the economy. This is approximately seventy eight percent of the GDP in the nation. It has also facilitated the growth of value in other sectors of the economy. For instance, the financial services sector has been critically imperative in the providing the necessary funds required in all the other sectors that also play a role in the economic growth of the nation. Another example is the transport service. It has enabled the transfer of goods from their production sites to the final consumer. Perishable products are therefore able to reach consumers while still in a good state. This has therefore enhanced economic growth in the whole nation. Majority of the industries in Australia are moving a way from just producing products to a situation whereby they are delivering solutions and services through the products being sold. Consumers are also quite aware of this fact and are constantly looking out for the value of the service whenever they purchase products in the market. A critical analysis of the growth of the services sector in Australia reveals that the optimistic arguments have not been fully realized. This highly relates to the aspects of innovation in the sector. It is quite apparent that innovation in the services sector is quite critical if growth is to be fully realized. According to Brown, (2007) innovation in the services sector in Australia is still in its infancy stages. One of the major factors that have hampered innovation in the services sector is lack of specific funds set aside by the government for the purpose. The nature of services also has made it quite slow for innovations to take the forefront in realization of the maximum potential in the sector. (Brown, 2007) The fact that the production and consumption of services is inseparable means that any form of innovation has to go hand in hand with the overall interaction with the final consumer. This is not an easy task to achieve and it has made innovation strategies in the sector to lag behind. Information and technology are highly utilized in the innovation strategies in the service sector. These two aspects in Australian nation have not enhanced innovation in the service industry due to many hiccups in the delivery of the utilities. Many of the scholars in the nation have acknowledged that service innovation can be a complex issue that since it is quite multi-dimensional in nature. (Alan, 2004) It has been argued that innovations in the sector will require not more of changes in technology but changes in the overall behaviour exhibitions. The delivery channel of services is quite limited in nature and this has hindered its optimization of its maximum potential. It is also quite clear that the Australian service industry has not been in a position to meet the current demand in the market. Consumers are constantly looking out for more innovative features in the delivery of services. This has been highly spurred by globalization where national and international businesses are also carried out online. (Casson, 2002) In fact, many service organizations in Australia are confronting more turbulent markets, more demanding shareholders, and more discerning customers, and many have to carry out restructuring to meet such disputes. Transformation is always imminent just like a river winding its way to the ocean; it never ceases. It is only the successful ones will continue to expand these competencies in order to maximize their survival potential in the turbulent market. This does not necessarily require business owners and other stakeholders to be physically stationed within the nation. The service industry in Australia has also been hampered by the global financial crisis that is evident all over the world. (Casson, 2002) This has highly affected the insurance and finance sector that usually provide a large percentage of income to the economy of the nation. Further analysis also reveals that business and property services have been adversely affected. This has therefore led to increased unemployment rates among Australian citizens. The group that is highly affected is people with least experience and skills in various professions relating to knowledge work. (Sewell, 2005) Many scholars have argued that the Australian economic growth would be on the positive side as from 2006. This was expected despite being affected by a severe drought, global economic crisis. Economic augmentation in the Australian market was expected to continue with an estimated GDP of 3.75 % in the 2007/08 going up from 2.5% in the 2006/07. Economy in the year 2007/08 is expected to increase because of a recovery from drought, increased exports and an increment in business investments. (Sewell, 2005) The year 2008/09 it was projected to have an economic growth of more than six percent. Majority of this was expected to emanate form the service industry in the nation. The Australian economy is responding well to global economy. In general, wage pressures are estimated to remain under control and inflation is estimated to remain moderate. Low inflation implies that, automotive fuel prices have stabilized; in addition high prices of fruit experienced in 2006 have gone down, lowering inflation rates. (Darr, 2008) The Australian currency was argued to remain strong; this is because exports of rural commodities were estimated to increase in 2007/08. In addition, exports of well finished manufactured goods and service were anticipated to reduce the high exchange rate being witnessed and enhance international competition. A strong exchange rate enhances high exports while lower exchange rate discourages it. (Thompson, 2007) Australian nation is currently witnessing low exports in the last 30 years because of bad economy factors like 2006 drought which was so severe according to the records, 2006 was the driest year specifically in southern Australia. Hence, adversely affecting the exports for the year; 2006/2007. (Sewell, 2005) Optimistic arguments about business laws and legislations have also been put forth by various scholars in Australia. It was argued that business laws and legislation were expected to improve hence making initiation of knowledge work businesses would be made easier. (O'Brien, 2006) This is where it was argued that the government would put in place proper frameworks that would enhance overall growth of the economy through the business sector. Research carried out by Smith, (2005) shows that for all Companies, businesses and organizations in the market to thrive, there must be proper legislative measures and adequate frameworks put in place. (Smith, 2005) An analysis of this argument shows that it has been achieved in the Australian labour market. This is considering the fact that the Australian nation has put in place proper frameworks to enhance overall productivity hence the growth of the economy in the nation. The government has ensured that laws and regulations are out in place that will enhance equality at the work place. This is whereby all people within an organization are given equal opportunities in job promotions etc. This has enhanced productivity in industries in the market. (Hislop, 2008) This argument has also been achieved because the government has ensured that equal opportunities are given to any person wishing to start up a business in the nation. This has been done by ensuring that corrupt practices during issuance of business licenses are pertinently minimized. This has actually seen to it that the growth of knowledge work is realized. Labour laws are quite significant in addressing cases of unwarranted dismissals. They are designed to curtail majority of the issues of misunderstandings between the employees and their employers. This is more so when it comes to laws and legislations on employment. (Sewell, 2005) These laws enhance overall employee-employer relations and that in the long run, cases of unfair dismissals will not arise. These relations are supposed to be transactional in essence and normally work on a mutual foundation among the stakeholders involved Research however reveals that in many cases the employees in Australia end up giving a lot more than what they receive. Over time, these laws have been made to favour employers. It is increasingly difficult to have an equal footing with new labour markets and an economy that is highly liberalized. The labour laws being formed and passed give advantage to employers in the nation. An example, of the laws that give the employer a lot of power and an upper hand in bargaining on the redundancy law. (O'Brien, 2006) This law states that when an employer does not or no longer need the services of the employee to perform the given work then he can declare the employee redundant. This has led to many employers to lay off employees without any proper explanation. This has therefore hampered the growth of knowledge work in the country. Therefore the optimistic argument that business laws and regulations in the nation would enhance the growth of the economy does not hold water and have not been realized. It is quite essential to note that the state regulation matters just as much as the national regulation. This is considering the fact that the regulatory environment affects all the other players in the market like skills and even any growth in the services sector. Many stakeholders in the government have put forth their views on the need to have national audits relating to regulatory matters that pertains to the services sector. This includes having transparency exercises that will enhance optimum success in knowledge work within the nation. (Sewell, 2005) In conclusion, there have been many optimistic arguments about the growth of knowledge work in Australia. One of the aspects in these arguments has been the debates about skill. A thorough analysis of the Australian market revealed that this argument has not yet been realized. This is considering the fact that a larger percentage of the people in the nation are still low skilled. This group of people holds low scale level of jobs majority of which are in the information sector. It is also quite evident that the skills in the labour market are not meeting the demand in the Australian labour market. This is more so the demand from global business in the nation. It was also argued that the Australian service industry would experience enviable growth by the year twenty twenty. It is quite evident that the growth service industry in the nation has been realized. This is considering the fact that the service industry is currently contributing a very large percentage to the economy of the nation. It is currently offering up to a total of eighty five percent of employment opportunities in the nation. On the other hand, the service industry has not really grown to the expected standards. This is more so in relation to the issues of innovation in the sector. There is very little innovation that has been carried out in the service industry. This has made the industry to lag behind when compared to other world economies. There are also other factors that have been argued by scholars such as laws and regulations in the Australian labour market. These have in one way been realized and when looked at from another perspective, little has been achieved. All in all, there is still room for improvement as pertains to knowledge work and all the other forces involved in the labour market. Read More