LABOR-MARKET OUTCOMES AMONG RETRENCHED WORKERS IN AUSTRALIA - A REVIEW

In any one year perhaps 5% of the Australian workforce experiences ret renchment. Retrenchment causes people shock and loss of income; they b ecome socially isolated and their psychological health deteriorates. M any studies have examined the subsequent labour force experience of re trenched workers, in terms of conditions in the labour market, retrenc hment and hiring practices, state policies and the personal characteri stics of the workers. This paper reviews evidence about the factors th at influence the prospects of retrenched workers, identifies some flaw s in the design of studies in which that evidence has been collected, and points to ways in which more comprehensive evidence can be collect ed. An informed interpretation of evidence requires appropriate method s for identifying cause and effect, should rest on a clear identificat ion of the forms of employment that exist, and needs to be sensitive t o the manner in which personal characteristics are used by employers a s hiring markers.