Workforce participation rates: how does Australia compare?

This paper examines the comparability of international workforce participation rates and seeks to better understand the magnitude of the gap between Australia's workforce participation rates and those of other OECD countries. The paper also provides information on recent trends in Australia’s workforce participation experience and comparisons of Australia’s labour utilisation performance relative to comparable OECD countries. Published OECD data on workforce participation rates cover some 30 countries, including Australia. Although the paper reports on participation rates for each of these countries, particular attention is given to countries that are broadly comparable to Australia in that they have similar cultural attitudes and institutional settings, for example, Canada, New Zealand, the UK and the US. Australia’s workforce participation experience over the last 25 years is considered along with how Australia’s workforce participation rates compare internationally using the published data. A range of adjustments that need to be made to the published data to take account of statistical practices that reduce the comparability of participation rates across countries are examined. The paper concludes by presenting adjusted workforce participation rates and examining the implications of the adjusted data for raising Australia’s workforce participation rates.

Published excerpt from chapter one. Copyright Commonwealth of Australia reproduced by permission. Show less