Transitions from casual employment in Australia

Background

Around a quarter of working Australians are employed on a casual basis. Most casuals are not entitled to paid leave, but are generally paid a loading of 20 to 25 per cent on top of their hourly rate of pay. The growth of casual employment over the past twenty years has prompted much commentary on the stability and security associated with this form of employment.

There is some evidence that the flexibility and higher hourly rates provided by casual employment suit some employees, such as students or women with young children. Other casual employees, particularly prime-age men working full-time, are more likely to be unsatisfied with casual employment and desire permanent employment.

There is little Australian evidence about transitions from casual to permanent employment. Data on tenure in casual employment show that many casuals have been employed in the same job, or on a casual basis, for long periods of time. For example, the 2002 ABS Career Experience survey shows that 25 per cent of employees without leave entitlements have been working with the same employer for between one and three years, 12 per cent for between three and five years, 12 per cent for between five and ten years and 11 per cent for more than ten years.

Objectives

The project uses longitudinal data from the HILDA survey to examine transitions (back and forth) between being a casual employee, a non-casual employee, a non-employee, and not being employed. It investigates and determines what characteristics influence transitions. Employee preferences for different employment types will be accounted for in the econometric analysis by the inclusion, where feasible, of random or fixed effects.

Contact: Dr Hielke Buddelmeyer.

Progress

A progress report was submitted to the Department of Employment and Workplace Relations (DEWR) in December 2005.

Timeline

This project commenced in 2005. A draft report is scheduled to be delivered at the end of March 2006.