Geographic labour mobility is a specific aspect of labour mobility. Labour mobility generally refers to the movement of people from one job to another. Geographic labour mobility provides a locational perspective on labour mobility. Geographic labour mobility is one element of a flexible labour market. It is an important mechanism for adjusting to labour demand shocks (such as factory closures), seasonal variations in labour supply, and to broader structural changes in the economy. By enabling labour to move to its best use across different regions of Australia (including outer metropolitan and non-metropolitan locations), it can alleviate labour shortages and regional disparities in labour market conditions, such as high levels of unemployment, and increase skills utilisation, earning and community wellbeing.
The Australian Government has requested that the Productivity Commission undertake a research study assessing geographic labour mobility within Australia and its role in a well-functioning labour market. The principal objective of the study will be to examine patterns of mobility, impediments and enablers, and their effect on the ability to meet Australia’s continually changing workforce and employment needs. Specifically, the Commission has been asked to: (1) examine patterns and trends in geographic mobility, their relative contribution to regional labour supply, and the implications of structural, demographic and technological developments; (2) identify the key determinants and drivers of mobility, including the costs and benefits from the perspectives of businesses, individuals, their families and governments, any differences in the determinants and drivers of mobility between groups, and an assessment of the effectiveness of market signals, such as wages; (3) identify the major impediments to geographic mobility to support economic adjustment, employment and productivity outcomes; assess the current strategies used by employers and governments that affect geographic mobility, and discuss possible options to enable further mobility; and (4) estimate the prospective economy-wide impacts of reducing impediments to geographic mobility. In undertaking the study, the Commission will consult with governments and other interested groups.
This issues paper has been released to assist individuals and organisations to prepare submissions to the study. It contains and outlines: the scope of the study; the Commission’s procedures; matters about which the Commission is seeking comment and information; and how to make a submission. The Commission aims to submit a final report to Government by 21 May 2014.
Excerpts from publication.
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