InSummary: Barriers and Incentives to Labour Force Participation
Can we address skill and labour shortages by improving workforce participation?
Persistent skill and labour shortages combined with historically high labour force participation rates and demographic challenges associated with an ageing population and workforce as well as the projected decline in new workforce entrants will require a concerted effort to understand barriers and incentives to labour force participation in order to attract and/or enable people to work to meet our growing labour force needs.
Recently released by the ABS, the Barriers and Incentives to Labour Force Participation publication for December 2023 provides an important insight into the factors which prevent Australians working more hours or from engaging with work, as well as what may incentivise them to look for work. These insights are available for a range of variables including by age group and sex as well as status by presence of children and their age, study, highest level of educational attainment, health condition, disability, welfare and duration since last job.
While the ‘low hanging fruit’ in terms of future labour supply may be with addressing barriers for those seeking to work additional hours, and/or for those unemployed, available and actively looking for work, this InSummary provides an analysis of the factors preventing Australians from participating in the labour force and how those factors differ for each age group, men and women and their personal circumstances.