Read The Times Australia

Daily Bulletin

5 charts on what a Newstart recipient really looks like

  • Written by: Owain Emslie, Associate, Grattan Institute

The Newstart unemployment benefit is all over the news. It’s the subject of a Senate inquiry. Today it will take evidence in Elizabeth, in what used to be Adelaide’s industrial north.

Should it be higher? Should recipients be paid with a cashless card? Or drug tested? Or stripped of their payments if they join climate protests?

To make sense of these proposals it helps to know something about who receives Newstart payments. It’s a picture many of us get wrong.

Read more: Are most people on the Newstart unemployment benefit for a short or long time?

Here’s a heads-up. They are not particularly likely to be young, they are are not especially likely to be men, and more live in regional areas than we might expect.

Here are some facts to give us something to work with, set out in five charts:

Likely to be middle aged

First, Newstart recipients are a lot older than you might think.

Half are over 45. Partly this is because unemployed people aged 24 or younger are more likely to be getting Youth Allowance.

But even if we include unemployed Youth Allowance recipients in the figure, an outsized 45% of all unemployment benefit recipients are over 45. One quarter are over 55.

Women on Newstart are older still: 51% of female job-seekers are over 40, compared with 42% of male job-seekers.

5 charts on what a Newstart recipient really looks like Youth Allowance (other) excludes student and apprentice youth allowance. DSS Payment Demographics, March 2019

They are older on average than five years ago.

Over the five years to March 2019, the number of people on Newstart aged over 45 swelled by one fifth, and the number over 55 by two fifths. At the same time the number under 45 fell by 16%.

The increase in the number of older people on Newstart has coincided with a sharp decline in the number of older people receiving the Disability Support Pension.

Tighter assessment measures since 2012 have led to a decline in the number of people being assessed as eligible for the Disability Support Pension, forcing many declined applicants on to Newstart.

Less likely to live in big cities

People from the biggest states are less commonly on Newstart.

Someone from Victoria, NSW, or the ACT is about one third less likely to be on Newstart than someone from the rest of the country.

5 charts on what a Newstart recipient really looks like DSS Payment Demographics, March 2019, ABS 3101.0 Rural areas also have higher proportions of people on Newstart than cities. Someone outside a major city is one and a half times as likely to be on Newstart as someone in a major city. And the difference gets starker the further out you go. Someone in a “remote” or “very remote” area is more than twice as likely to be on Newstart as someone in a major city. 5 charts on what a Newstart recipient really looks like Population at March 2019 is estimated based on ABS data at June 2018. DSS Payment Demographics, March 2019, ABS 3281 Likely to have been on it for a long time Contrary to claims by Finance Minister Mathias Cormann and others, Newstart is not always a transitional payment. It’s true many of the people coming on to Newstart leave it soon after: of those who began receiving Newstart payments in 2017, 63% had come off within 12 months. But a focus on new recipients ignores the bulk of current recipients, who have been on it for much longer. Someone who has recently begun receiving Newstart payments is far more likely to move off them than someone who’s been on them for a longer period. As at March 2019, two thirds had been on it for more than a year. One fifth had been on it for more than five years. A significant 4% had been on it for more than ten years. Older recipients are more likely to have been on it for more than a year, and across all ages, women are more likely than men to have been on Newstart for more than a year. 5 charts on what a Newstart recipient really looks like Includes Newstart and Youth Allowance (other) recipients classified as ‘job seekers’. At August 2019, job seekers made up 52% of all Newstart and Youth Allowance (other) recipients. Labour Market and Related Payments Monthly Profile, August 2019 Tasmanian and Northern Territory recipients are the most likely to have been on it for more than a year; ACT and Queensland recipients are the least likely. But across all states, a clear majority of recipients have been on it for more than a year. 5 charts on what a Newstart recipient really looks like Includes Newstart and Youth Allowance (other) recipients classified as ‘job seekers’. At August 2019, job seekers made up 52% of all Newstart and Youth Allowance (other) recipients. Labour Market and Related Payments Monthly Profile, August 2019 So next time you picture a Newstart recipient, it might be wise to think of a middle aged woman living outside of the city in a smaller state. Unless we keep her in mind, we are likely to make the wrong decisions about the rate, about drug testing, and about everything else.

Authors: Owain Emslie, Associate, Grattan Institute

Read more http://theconversation.com/5-charts-on-what-a-newstart-recipient-really-looks-like-125937

Business News

How Immigration Lawyers Can Help

Introduction Visa decisions can shape employment, family life, study plans, travel, and future residence. A small omission can lead to delay, added expense, or refusal. Immigration lawyers assess l...

Daily Bulletin - avatar Daily Bulletin

How Industrial Drying Equipment Supports Efficient Processing

Many industrial processes require moisture to be removed from compressed air, products or process materials before they move to the next stage. Excess moisture can affect equipment performance, produc...

Daily Bulletin - avatar Daily Bulletin

Practical Ways a Whiteboard Can Improve Workplace Communication

Effective communication helps teams stay organised, share ideas and keep track of important information. While digital tools are now common in many workplaces, a whiteboard continues to provide a simp...

Daily Bulletin - avatar Daily Bulletin

Designing Eco-Friendly Custom Water Bottles for Your Next Event

The Evolution of Sustainable Event Merchandise Event planning has undergone a massive transformation over the last decade. Gone are the days when organizers could hand out cheap, single use plastic...

Daily Bulletin - avatar Daily Bulletin

Why Choosing a Professional Florist Melbourne Makes Flower Delivery Impactful

Flowers have a great power to speak when humans cannot express their feelings with right words. Flowers are the best gifts when you are celebrating a birthday or welcoming a newborn child into your fa...

Daily Bulletin - avatar Daily Bulletin

The Business Case for Choosing Australian Fabricators Over Imported Alternatives

For a long time, you might have defaulted to overseas suppliers when sourcing fabricated metal components for a project. The unit price was lower on paper, and the maths seemed straightforward. That...

Daily Bulletin - avatar Daily Bulletin

Australian organisations are relying on business continuity plans built for a far more predictable world

Tariff escalations, supply chain fragility, geopolitical events, and the ongoing threat of cyber disruption have reshaped the risk environment facing Australian organisations. The problem is that ma...

Daily Bulletin - avatar Daily Bulletin

How to Rent a Car for Uber in Melbourne: What Every New Driver Needs to Know

Starting out as an Uber driver in Melbourne is not as complicated as it sounds but getting the vehicle right is where most new drivers get stuck. Uber has strict requirements around vehicle age, condi...

Daily Bulletin - avatar Daily Bulletin

When Should You Speak to a Lawyer About a Legal Issue?

Legal issues can begin with a simple question, then become harder to manage once formal steps are involved. Many people wait until a matter feels urgent before seeking guidance, even though earlier ...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

Why Accurate Measurements Matter When Ordering Flatpack Cabinets

Ordering flatpack cabinets can make a renovation or storage project more manageable, but the proce...

How Long Does Interstate Freight Take in Australia?

If you have ever arranged for stock, equipment or materials to travel from one Australian state to a...

How AEC Firms Can Scale Faster Without Sacrificing Project Quality

Growth presents a fundamental dilemma for architecture, engineering, and construction firms: expan...

What Makes an Aesthetic Clinic Worth Going Back To?

Trying an aesthetic clinic for the first time can feel like a bit of a gamble. You can read review...

Elevate Your Morning Routine with Cafe-Style Coffee at Home with the Right Coffee Machine

There's something magical about that first sip of coffee in the morning. It’s more than just a bev...

Top Garment Steamers for Busy Professionals in Australia

The gap between garment steamers built for a quick touch-up and ones built to keep pace with a wor...

Correct Sleeping Posture to Minimize Back Strain

Most people don’t pay much attention to how they sleep until they start waking up with a stiff bac...

Why Product Longevity Matters for Sustainable Australian Buildings

Sustainability in building design is often associated with recycled materials, renewable resources a...

NDIS Support Coordination Explained: What Does a Support Coordinator Actually Do?

NDIS support coordination explained means understanding how a professional can help participants n...