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OVEREMPLOYMENT
HOW COMMON IS OVEREMPLOYMENT? Between April and July 2007, the ABS surveyed Australian workers aged 15 years and older about their employment arrangements. At that time, around two-thirds (65%) felt they were working close to their preferred number of hours. While 1.4 million workers (14%) wanted to work more hours, about 2.2 million (21%) preferred to be working fewer hours. In 2007, most overemployed workers (89%) usually worked full time (i.e. at least 35 hours a week), though a significant proportion (11%) usually worked part time (i.e. less than 35 hours a week). Generally though, the more hours usually worked, the more likely people were to be overemployed. Only 4% of employed people usually working 1-15 hours a week were overemployed. The overemployment rate gradually increased through hours worked cohorts to 51% of those usually working at least 60 hours a week being overemployed. In summary, full-time workers were considerably more likely than part-time workers to be overemployed (27% compared with 7%). EMPLOYED PEOPLE(a), USUAL HOURS BY PREFERRED HOURS - 2007 (a) Excludes contributing family workers and those whose preferred hours are not known. Source: ABS 2007 Survey of Employment Arrangements, Retirement and Superannuation Since mid-2007, there has been a slowdown in economic activity, and legislative changes introduced in 2009 were designed to make it easier for some workers to reduce their weekly working hours if they want to do so. Given these two developments, the proportion of Australian workers who are overemployed may have eased since mid-2007.
HOW MANY HOURS DO OVEREMPLOYED WORKERS PREFER TO WORK? In 2007, the number of hours that overemployed workers usually worked was considerably different from the number of hours they preferred to work. While most (89%) overemployed workers were usually working full time (35 hours or more), nearly two in five (39%) full-time overemployed workers preferred to be working part time (less than 35 hours). Among overemployed full-time workers, females were more likely to prefer part-time hours (55%), than males (30%). The difference between usual and preferred hours was greatest among overemployed workers who usually worked at least 60 hours a week. The average number of hours usually worked weekly by these overemployed workers was 67 whereas the average number of hours they preferred to be working was 42. There were also differences between average usual and average preferred working hours among overemployed workers in all other usual hours worked cohorts, with the exception of those usually working 1-15 hours a week where there was no statistically significant difference. OVEREMPLOYED WORKERS(a), AVERAGE USUAL AND AVERAGE PREFERRED HOURS(b) - 2007 (a) Excludes contributing family workers and those whose preferred hours are not known. (b) Those whose preferred number of hours was not known were excluded prior to the calculation of averages. Source: ABS 2007 Survey of Employment Arrangements, Retirement and Superannuation WHO IS OVEREMPLOYED? In 2007, Australia's 5.7 million male workers were more likely than its 4.6 million female workers to be overemployed (22% compared with 19%). This is in line with full-time workers being more likely to be overemployed, as employed males were more likely than employed females to be working full time (84% compared with 52%). When comparing male and female full-time workers, 30% of the 2.4 million female full-time workers were overemployed compared with 25% of the 4.8 million male full-time workers. Similarly, female part-time workers (2.2 million) were also more likely than male part-time workers (912,900) to be overemployed (8% compared with 6%). PROPORTION OF EMPLOYED PEOPLE(a) WHO WERE OVEREMPLOYED, AGE GROUPS BY SEX - 2007 (a) Excludes contributing family workers and those whose preferred hours are not known. Source: ABS 2007 Survey of Employment Arrangements, Retirement and Superannuation Young workers or older workers? In 2007, the likelihood of being overemployed tended to increase with age before declining among employed people of Age Pension qualifying age. Only 7% of employed youth (aged 15-24 years) were overemployed. Rates were progressively higher among 25-34 year olds (19%), 35-44 year olds (25%) and 45-64 year olds (27%), before declining to 19% of employed people aged 65 years or older. This pattern by age group was similar for both males and females, with females generally having lower overemployment rates in each age group. Overemployed workers were overrepresented in the 35-64 year age group. While people in this age group represented 59% of all employed people, 35-64 year old overemployed workers accounted for 72% of all overemployed workers. Workers with young children? In 2007 (prior to the passing of the Fair Work Act 2009) there were around 1.4 million employed parents living with one or more 0-4 year old children. Of these parents, 26% of partnered fathers were overemployed, along with 19% of partnered mothers and 19% of lone parents (most of whom were women/mothers). Partnered workers? Workers who were partnered were considerably more likely to be overemployed than workers without a partner (25% compared with 14%). Higher overemployment rates among partnered workers are associated with their tendency to work longer hours (39 hours per week on average) than unpartnered workers (34 hours per week). PROPORTION OF EMPLOYED PEOPLE(a) WHO WERE OVEREMPLOYED BY FAMILY STATUS - 2007
* This proportion has a relative standard error between 25% and 50% and should only be used with caution. ** This proportion has a relative standard error exceeding 50% and is unsuitable for most purposes. Source: ABS 2007 Survey of Employment Arrangements, Retirement and Superannuation Workers living in high income households? After equivalising household incomes to standardise different household sizes and compositions, workers tended to be more likely to be overemployed the higher their household income. In 2007, only 12% of workers living in low income households (i.e. the 2nd or 3rd equivalised gross household income deciles) (Endnote 6) were overemployed. By comparison, 32% of workers living in households in the highest equivalised gross household income decile were overemployed. Both hours worked and overemployment rates were associated with household income. For example, the average number of hours worked weekly by employed people living in low income households was 28, and 12% were overemployed. Employed people with household income in the highest decile averaged 43 hours of work per week, and 32% were overemployed. PROPORTION OF EMPLOYED PEOPLE(a) WHO WERE OVEREMPLOYED BY EQUIVALISED GROSS HOUSEHOLD INCOME DECILE(b) - 2007 (a) Excludes contributing family workers and those whose preferred hours are not known. (b) Due to a number of reasons (including the possession of assets or underreporting) people in the lowest income decile may not necessarily be experiencing economic hardship. (Endnote 6) Source: ABS 2007 Survey of Employment Arrangements, Retirement and Superannuation Multiple job holders? In 2007, only 6% of employed people had more than one job. Overemployed workers were no more likely to be multiple job holders (7%) than other workers (6%). Employees or owner managers? In 2007, only 7% of casual employees were overemployed, largely reflecting the high rate of part-time employment amongst casual workers (69%). Other employees and owner managers of unincorporated enterprises (OMUEs) were more likely to be overemployed (23% and 24% respectively), while owner managers of incorporated enterprises (OMIEs) were even more likely to want to work fewer hours (37%). The relatively high overemployment rate among OMIEs partly reflects their comparatively long working week (44 hours on average). Employees with paid leave entitlements and OMUEs both averaged 40 hours of work per week, while casual employees worked a 24 hour week on average. Doctors, farmers and politicians? Some occupations are anecdotally highlighted by the media as entailing long working hours that can induce fatigue, burnout or accidents. In 2007, the major occupation groups most likely to experience overemployment were Managers (38%) and Professionals (26%). Not all organisations offer supervisory or managerial jobs to part-time workers, (Endnote 7) and senior management positions are less commonly available on a part-time basis in many organisations. Furthermore, keen competition for stimulating, well-remunerated jobs with prestige and autonomy may underpin long working hours to some extent in deregulated labour markets such as Australia. All other factors being equal, candidates for such jobs who work longer hours are more likely to achieve more and be selected for these jobs. In such cases, long working hours may represent an investment that enhances prospects for career progression. (Endnote 8) (Endnote 9) (Endnote 10) Among managers, those who were Education, Health or Welfare Services Managers were particularly likely to have been overemployed (52%). The overemployment rate was 39% among Chief Executives, General Managers and Legislators, and 34% among Farmers and Farm Managers. Of professionals, those who were Medical Practitioners (45%), School Teachers (38%) or Legal Professionals (32%) were among the most likely to have been overemployed in 2007. The high overemployment rate among medical practitioners may be partly due to demand for health care services exceeding the supply of doctors. (Endnote 11) Labour shortages could be a key factor behind relatively high rates of overemployment in some occupations, although cultural factors such as a well-established tradition of long working hours may also contribute to overemployment in others. (Endnote 8) (Endnote 9) (Endnote 10) SELECTED CHARACTERISTICS OF EMPLOYED PEOPLE(a) BY OCCUPATION IN MAIN JOB - 2007
(b) Excludes those whose equivalised gross household income per week was not known. Source: ABS 2007 Survey of Employment Arrangements, Retirement and Superannuation People working in the mining and agriculture industries? At the broadest level of classification, people employed in the Mining industry and people employed in the Agriculture, Forestry and Fishing industry worked the longest hours (averaging 50 and 46 per week respectively). Long hours, however, do not necessarily translate into high overemployment rates. People employed in the Mining industry were not more likely than other workers to be overemployed (22% compared with 21%), while Agriculture, Forestry and Fishing industry workers were only a little more likely than other workers to be overemployed (26% compared with 21%). With an overemployment rate of 28%, people working in the Education and Training industry were more likely than Mining industry workers and just as likely as Agriculture, Forestry and Fishing industry workers to be overemployed, despite working a considerably shorter week (35 hours on average). At a more detailed level of classification, industries with relatively high overemployment rates (at least 30%) included Exploration and Other Mining Support Services (39%), Electricity Supply (32%), Telecommunications Services (32%), and Preschool and School Education (31%). WHY DO OVEREMPLOYED WORKERS WANT TO WORK FEWER HOURS? The most commonly cited main reason for preferring to work fewer hours was social reasons, recreational activities and/or free time (chosen by 36% of all overemployed workers). A lower proportion of overemployed workers nominated family reasons (24%) such as caring for children (11%) as their main reason for wanting to cut back their working hours. It was uncommon for overemployed workers to want to reduce their working hours mainly because of ill health, injury or disability (3%) or mainly for study purposes (2%). However, these reasons (along with all other reasons) may also be a factor in preferring to work fewer hours. MAIN REASON OVEREMPLOYED WORKERS(a) WOULD PREFER TO WORK FEWER HOURS - 2007
* This proportion has a relative standard error between 25% and 50% and should only be used with caution. ** This proportion has a relative standard error exceeding 50% and is unsuitable for most purposes. Source: ABS 2007 Survey of Employment Arrangements, Retirement and Superannuation Some insight into why around one in five workers prefers to work fewer hours can be gained from how frequently these workers feel rushed or pressed for time. In 2007, over two-thirds (70%) of overemployed workers often or always felt rushed or pressed for time. In comparison, less than half of other workers (41%) felt this way. HOW FREQUENTLY EMPLOYED PEOPLE(a) FEEL RUSHED OR PRESSED FOR TIME - 2007 (a) Excludes contributing family workers and those whose preferred hours are not known. Source: ABS 2007 Survey of Employment Arrangements, Retirement and Superannuation Among overemployed workers who always or often felt rushed or pressed for time, the most commonly cited main reason for feeling this way was trying to balance work and family responsibilities (38%). Other main reasons included the pressure of work/study (23%), having too much to do or being subject to too many demands (22%), and taking on too much (9%). Another indication of why some workers prefer to reduce their working hours can be gained from examining the extent to which overemployed workers feel that their work and family responsibilities are balanced. Among all overemployed workers, around one in four (24%) felt that their work and family responsibilities were rarely or never in balance. Other Australian workers tended to experience a better balance, with a lower proportion (13%) feeling that their work and family responsibilities were rarely or never in balance. HOW FREQUENTLY EMPLOYED PEOPLE(a) FEEL THEIR WORK AND FAMILY RESPONSIBILITIES ARE IN BALANCE - 2007 (a) Excludes contributing family workers and those whose preferred hours are not known. Source: ABS 2007 Survey of Employment Arrangements, Retirement and Superannuation SUMMARY In 2007, there were around 2.2 million overemployed workers in Australia. Most overemployed workers usually worked full time (89%), most were partnered (77%), and most were either managers or professionals (52%). Overemployed workers were more likely than other Australian workers to always or often feel rushed or pressed for time, and to feel that their work and family responsibilities were rarely or never in balance. However, the single most commonly cited main reason for wanting to work fewer hours was social reasons, recreational activities and/or free time. ENDNOTES 1. Dawson D, McCulloch K and Baker A, 2001, Extended Working Hours in Australia: Counting the Costs, The Centre for Sleep Research, The University of South Australia, <www.justice.qld.gov.au>.2. Sluiter JK, Van Der Beek AJ and Frings-Dresen MHW, 1999, The influence of work characteristics on the need for recovery and experienced health: a study on coach drivers, in Ergonomics vol. 42, no. 4, <www.ncbi.nlm.nih.gov>.3. Lingard H, 2004, Work and Family Sources of Burnout in the Australian Engineering Profession: Comparison of Respondents in Dual- and Single-Earner Couples, Parents and Nonparents, in Journal of Construction Engineering and Management vol. 130, no. 2, <www.ascelibrary.org>.4. Pocock B, 2003, The work-life collision: what work is doing to Australians and what to do about it, Federation Press, Sydney, <www.federationpress.com.au>.5. International Labour Organization, 1998, Sixteenth International Conference of Labour Statisticians, Geneva, 6-15 October 1998: Report of the Conference, <www.ilo.org>.6. Income and expenditure data reported in ABS Household Expenditure Surveys have shown that households in the lowest decile who have negative gross income tend to have expenditure levels slightly above the average expenditure of households in the fifth decile. Other households in the lowest decile have, in past surveys, had average expenditures above the average of households in the second decile. For more information, see Explanatory Notes 29-32 in ABS Household Income and Income Distribution, Australia,2007-08 (cat. no. 6523.0). For analysis of the expenditure and net worth of households in the lowest income decile, see Appendix 4 in ABS Household Wealth and Wealth Distribution, Australia, 2003-04 (cat. no. 6554.0).7. Whittard J, December 2003, Training and Career Experiences of Women Part-time Workers in a Finance Sector Organisation: Persistent Remnant of the 'Reserve Army'? in Australian Journal of Labour Economics, vol. 6, no. 4, <www.business.curtin.edu.au>.8. Landers RM, Rebitzer JB and Taylor LJ, June 1996, Rat Race Redux: Adverse Selection in the Determination of Work Hours in Law Firms, in The American Economic Review, vol. 86, no. 3, <www.jstor.org> .9. Drago R, Black D and Wooden M, 2005, The Existence and Persistence of Long Work Hours, The Institute for the Study of Labour (IZA) Discussion Paper, no. 1720, <www.melbourneinstitute.com>.10. Eastman W, January 1998, Working for Position: Women, Men, and Managerial Work Hours, in Industrial Relations vol. 37, no. 1, <www.ingentaconnect.com>.11. Gorman DF and Brooks PM, February 2009, On solutions to the shortage of doctors in Australia and New Zealand, in The Medical Journal of Australia, vol. 190, no. 3, <www.mja.com.au>. 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