6266.0 - Retrenchment and Redundancy, Australia, Jul 2001  
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 02/08/2002   
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SUMMARY OF FINDINGS

Overview

In July 2001, the number of persons aged 18-64 years who had held a job in the previous three years was 9,942,400. Of these, 596,400 (6%) had been retrenched in the three years prior to July 2001. This compares with 7% in the previous survey which covered the three years prior to July 1997.

Of those persons retrenched in the three years prior to July 2001, 400,500 (67%) were employed at July 2001. This compares with 374,900 (55%) persons who were employed at July 1997 after being retrenched at some time in the three years prior to that date.

Of those persons retrenched in the three years prior to July 2001, 99,100 (17%) were unemployed at July 2001. This compares with 200,500 (29%) persons who were unemployed at July 1997 after being retrenched in the previous three years.

Graph - Persons retrenched or made redundant in the previous three years, by labour force status



Age

Over half (52%) of those persons retrenched in the three years prior to July 2001 were aged between 25-44 years, with 16% aged between 18-24 years, and 10% aged between 55-64 years.

Just over one-quarter (26%) of males retrenched in the three years prior to July 2001 were aged between 35-44 years, whereas 29% of females retrenched were aged between 25-34 years.

Graph - Persons retrenched or made redundant, in the three years prior to July 2001, by age group



Industry

The largest number of employees were retrenched from jobs in the following industries:
  • Manufacturing - 122,100 (20% of all retrenched employees);
  • Property and business services - 70,400 (12%); and
  • Construction - 68,500 (11%).

There is a relatively high male share (65%) of all retrenchments which can be attributed, in part, to the large numbers of retrenchments in traditionally male-oriented industries such as Manufacturing and Construction. A similar trend was also identified in the previous survey where the male share was 68%.

The industries which recorded the highest proportions of retrenchment, relative to the number of employees at May 2001, were Mining (25%), Communication services (19%), and Construction (16%).

PERSONS AGED 18-64 YEARS, By industry
Employees
aged
Retrenched
18-64, May
employees(a)
2001(b)
Industry
'000
'000
Agriculture, forestry and fishing
10.8
194
Mining
18.7
75.4
Manufacturing
122.1
1,009.1
Electricity, gas and water supply
7.7
66.7
Construction
68.5
420
Wholesale trade
34.8
382.6
Retail trade
58.8
976.5
Accommodation, cafes and restaurants
25.3
394.1
Transport and storage
32.2
348.5
Communication services
31.9
167.8
Finance and insurance
28.7
334.2
Property and business services
70.4
880.9
Government administration and defence
22.1
367.8
Education
9.2
600.7
Health and community services
27.2
842.2
Cultural and recreational services
14.4
173.6
Personal and other services
13.7
275.7
Total
596.4
7,509.9
(a) Industry of job from which retrenched or made redundant in the three years prior to July 2001.
(b) Industry data for employees aged 18-64 years are from Labour Force, Australia, May 2001.


Occupation

The largest number of employees were retrenched from jobs in the following occupations:
  • Tradespersons and related workers - 106,900 (18% of all retrenched employees);
  • Intermediate clerical, sales and service workers - 98,700 (17%); and
  • Labourers and related workers - 80,800 (14%).

For males, the most common occupations affected were Tradespersons and related workers (26% of all retrenched males) and Intermediate production and transport workers (15%). In contrast, for females, the most commonly affected occupations were Intermediate clerical, sales and service workers (31% of all retrenched females) and Professionals (14%).

The occupations which recorded the highest proportions of retrenchment relative to the number of employees at May 2001 were Tradespersons and related workers (12%), Labourers and related workers (12%), and Intermediate production and transport workers (10%).


PERSONS AGED 18-64 YEARS, By occupation
Employees
aged
Retrenched
18-64, May
employees(a)
2001(b)
Occupation
'000
'000
Managers and administrators
36.7
456.8
Professionals
79
1,521.2
Associate professionals
55.8
866.9
Tradespersons and related workers
106.9
860.9
Advanced clerical and service workers
21.3
340.2
Intermediate clerical, sales and service workers
98.7
1,433.3
Intermediate production and transport workers
67.8
657.5
Elementary clerical, sales and service workers
49.4
690.8
Labourers and related workers
80.8
682.3
Total
596.4
7,509.9
(a) Occupation of job from which retrenched or made redundant in the three years prior to July 2001.
(b) Occupation data for employees aged 18–64 years are from Labour Force, Australia, May 2001.


Reason for retrenchment and prior notice

In July 2001, 42% of persons retrenched in the previous three years indicated the main reason for retrenchment was 'not enough work/job cuts'. Other commonly reported reasons included 'business closed' (18%) and 'change of management' (10%).

Over three-quarters (77%) of those retrenched in the three years prior to July 2001 were given prior notice of less than five weeks, with 149,500 (25%) given prior notice of less than one day.

Employment assistance

For persons retrenched in the three years prior to July 2001, the most common agencies contacted for employment assistance were employers (285,900 persons), employment agencies (261,400) and Centrelink (254,900).

The most frequent types of assistance provided by those agencies included 'referral to an interview for a job' (157,000 persons), 'provided with a job placement' (156,400), and 'referral to a Centrelink touch screen' (130,700).

Note that those persons who contacted agencies for employment assistance can be included in more than one category. Similarly, more than one type of assistance could have been provided.