Labour Market Issues in Melbourne's North

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Labour Market Issues in Melbourne's North
City Economy 05

Labour Market Issues in Melbourne’s
North
Anthony Kent
RMIT University
Email: anthony.kent@rmit.edu.au

ABSTRACT

This paper presents background research on labour market change in Melbourne’s
northern region. The point of departure for the analysis is 2001 Census data. The
author uses the City of Whittlesea in Melbourne’s north as a case study. Whittlesea is
a fringe urban area with a rapidly expanding population. It will be shown that bald
unemployment statistics are only one indication of labour market disadvantage and
that, in the case of Whittlesea, we find behind these figures indications that the local
population is experiencing, to paraphrase an expression from housing studies, ‘labour
market stress’. Although this is a preliminary paper, a key question has emerged
which will be addressed: jobs growth and reduction in unemployment have been
steady in Whittlesea between 1991 and 2001. In terms of broader indicators of
disadvantage, Whittlesea performs comparatively poorly. Why is this so and what
does it have to do with the local labour market?

INTRODUCTION

This paper presents background research on labour market change in Melbourne’s
northern region. The point of departure for the analysis is primarily 2001 Census data
and the author uses the City of Whittlesea in Melbourne’s north as a case study.
Whittlesea is a fringe urban area with a rapidly expanding population. It therefore
presents a challenge for labour market planners in a contemporary context of
persistent unemployment in particular locations, the growth of the ‘secondary labour
market’ (part-time, casual and temporary jobs) and fundamental labour market and
welfare reforms shortly to be introduced by the conservative Federal Government.

It will be shown that bald unemployment statistics are only one indication of labour
market disadvantage and that, in the case of Whittlesea, we find behind these figures
indications that the local population is experiencing, to paraphrase an expression from
housing studies, ‘labour market stress’. Although this is a preliminary paper, a key
question has emerged which will be addressed: jobs growth and reduction in
unemployment have been steady in Whittlesea between 1991 and 2001. In terms of
broader indicators of disadvantage, Whittlesea performs comparatively poorly. Why is
this so and what does it have to do with the local labour market?

APPROACH, METHODS AND CONSTRAINTS

Of particular interest is labour market disadvantage which will be interpreted as
comprising three essential elements: the extent to which access to employment is
restricted, the quality of jobs available within labour markets and upon whom labour
market disadvantage impacts most heavily. Indeed, a clear link has recently been

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shown between the first and second components. That is, the higher the status of the
job one holds in terms of skill requirements, stability and income is related to the
likelihood that a ‘revolving door’ effect in terms of unemployment/employment or
what has been termed ‘precarious employment’, is minimised (Weller and Webber,
2001).

The question arose as to how to evaluate Whittlesea other than by a time series
analysis of its own characteristics. At this preliminary stage of the research it was felt
that the first step should be to make comparisons with metropolitan-wide trends and
where appropriate other Local Government Areas (LGAs) in Melbourne’s north. This
has the advantage of providing a general sense of how Whittlesea’s workers and jobs
fit, as it were, into the broader metropolitan economy.

Due to limitations of space and time a number of constraints are imposed for this
paper which will be revisited on another occasion. The analysis is partly structured by
data availability. The bulk of the information used here is derived from the Australian
Bureau of Statistics (ABS) 2001 Census supported by more aggregated time series
data available for 1991 and 1996. Subsequent research will draw on 2006 Census
data, interviews and more specific surveys conducted by the author. Rather than
viewing this paper as a history of a labour market, it should be understood as a project
to identify trends, which will form the basis for a more comprehensive analysis.

The nature of the classifications of industry and occupational groupings are also not
beyond reproach. Concerns have been raised that the official figures recording the
‘decline in manufacturing’, for example, ignore the increasingly interrelated
relationship between the production process and services which aid that process
(Houghton et al., 1999). More fundamentally, it has been suggested the ‘top-down’
approach of inherited classifications tends to objectify ‘real’ people, or obscure the
voices of those whose livelihoods depend by definition on their labour market status
(Gibson et al., 1996; Peel, 2003).

Other key phenomena that impact on labour markets are not examined in detail. These
are housing markets, transport mobility and government policy 1 . Defining a local
labour market is also problematic. Clearly there is an obvious but difficult to elaborate
interrelationship between local jobs, jobs held by locals and the broader regional and
metropolitan economy. This paper is primarily concerned with local jobs and local
working residents, but inevitably in evaluating these, broader links will be considered.

CONTEXT: THE CHANGING GEOGRAPHY OF AUSTRALIAN CITIES

Radical changes in the location, working conditions and sectoral composition of the
Australian labour force have been underway since the last quarter of the twentieth
century and have involved a restructuring of economic management by both
corporations operating in Australia and the Australian state as overseer of the
economy. What is occurring is a major transition, from the ‘Australian settlement’,

1
 For a discussion of these relationships see, for housing markets, Winter and Stone, (1998), O’Connor
and Healy (2002), Dodson (2003), Reynolds and Wulff (2005). For transport mobility see Urban
Research Program, 2005. For government policy see Birrell et.al., (2005).

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     ‘…an historical accretion of state action assembled since the early 20th
     century and built around state policies of protectionism, the centralised
     regulation of labour market conditions and controlled immigration…(with)
     inherent redistribution mechanisms, for example, towards unionised
     workers, onto protected sectors and industries…’ (McGuirk and O’Neill,
     2003:12-13).
to
     ‘…Australian cities… exposed to forces of economic and political restructuring
     that are beginning to make for noticeable differences in the established spatial
     order…a growing centralization of wealth combined with the selective dispersion
     of poverty to structurally vulnerable suburbs’ (Badcock, 2000: 211).

How the ‘spatial order’ has been reconfigured has been examined in detail by Fagan
and Webber (1999) and O’Connor et al. (2001). The number of people adversely
affected has been greatest in the ‘second wave’ of manufacturing suburbs established
on what were fringe locations in the 1970s and are now middle ring suburbs (Fagan,
2000; Randolph and Holloway, 2005). Unemployment in these areas reached well into
double figures in the early nineties and has remained well above the metropolitan
average ever since (McDonald, 1995; Dodson and Berry 2003).

During this period of restructuring, observers of Australian cities also saw an
acceleration of a trend apparent since the Second World War. Increasingly, the
dormitory character of suburban locations has diminished to the point where the full
range of economic activities can now be found there (O’Connor and Healy, 2002).
While this has not occurred to the extent of the United States, where what would
appear to Australians as Central Activity Districts have emerged in the form of ‘edge
cities’, it can be said that Australian cities now comprise a number of overlapping
local labour markets or have become ‘polycentric’ (McDonald, 1995; Freestone,
1998). This is reflected not only in the increased level of self-containment (local
residents who work locally) over time, but in a tendency for each of these local
economies to develop industry specialisations (O’Connor and Healy, 2002). For better
or worse, a subtle and sometimes not so subtle polarisation of industries and local
population skill profiles within suburban areas seems to be occurring and with it a
polarisation of socio-economic conditions (Badcock, 1994; Badcock, 1997; Burke and
Hayward 2000; O’Connor and Healy, 2002). It is not the millstone like legacy of the
‘old economy’ middle industrial suburbs that determines this stratification, but the
ability of particular regions to connect with ‘…the quaternary or informational
sector…substantially linked with economic globalization’s expansion of command
and control functions in transnational corporations, and the concomitant growth of
producer services complexes around those functions’ (Freestone and Murphy, 1998:
287). These functions have a tendency to agglomerate rather than disperse, ensuring
that the spread of benefits they herald is distributed unevenly. The ‘winners’ then are
those locations with connections to national and international markets through
international airports, high tech precincts, industrial estates with a high component of
elaborately transformed manufacturing, high status zones of conspicuous
consumption, ports, airports and communications infrastructure (Stimson, 2001).

Research in the late 1990s (based on the 1996 Census) established a typology of these
areas, and Table 1 provides some pertinent examples as they relate to Melbourne.

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Table 1. Communities of the post industrial city
    Community                 General locations                  Egs of suburbs and municipalities
    Advantaged global         Around the CBD and inner city,     Brighton, Camberwell, Kew,
    economies                 old higher status middle suburbs   Malvern, Brunswick, Moonee
                                                                 Valley, St Kilda, Prahran, Richmond

    Advantaged suburban       Edges around the first category    Heidelberg, Box Hill, Waverley,
    economies                 of areas, or further out towards   Nunawading, Ringwood, Knox,
                              fringe areas                       Berwick, Cranbourne

    Disadvantaged old         Middle and outer suburbs           Sunshine, Broadmeadows,
    manufacturing economies                                      Maribyrnong, Coburg, Preston,
                                                                 Dandenong

    Marginal suburban         Outer and fringe suburbs of        Keilor, Melton, Whittlesea, Croydon,
    communities               more affordable housing            Casey, Mornington

    Outer disadvantaged       Ex urban                           Bass Coast
    communities

Source: O’Connor et al., (2001) after Baum et al., (1999).

Figures 1 and 2, display examples of ABS mapping of socio-economic indicators
from the 2001 Census which reinforce in a very visual sense the typologies described
by Baum et al.

O’Connor et al., (2001) argue that Australia is ‘a society dividing’ along the fissures
displayed in Table 1 and Figures 1 and 2. Symbolic analysts 2 (essentially, a group of
well educated information and consultant workers whose job growth is greatest
amongst occupations and salaries the highest) and investment in construction are
over-represented in the first two categories. The converse is true for disadvantaged
old manufacturing economies, where routine production workers 3 are overrepresented
and investment is lower. The more benevolent if ambiguous marginal suburban
economies are the poor relation of the advantaged suburban economies in terms of
investment and the greater number of routine production workers vis a vis symbolic
analysts.

2
  Reich’s term (1992). Also referred to as ‘new economy’ workers (O’Connor and Healy, 2002) – an
acknowledgement that in the global information era, these are the jobs of the future.
3
  Or ‘old economy’ workers (O’Connor and Healy, 2002), equally an indication that this group
represent the jobs of the past, or at best, a tenuous present.

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Figure 1. Tertiary education, 2001 Census. Source: ABS, 2001.

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Figure 2. Unemployment rates, 2001 Census. Source: ABS, 2001

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ON THE FRINGE: RECENT LABOUR MARKET STUDIES ON
AUSTRALIAN CITIES

Detailed examination of labour markets or more broadly economic conditions in
fringe Australian suburbs is not central to the body of knowledge on Australian cities
and hence the topic itself is ‘on the fringe’. This is not due to the obscurity of the topic
or the quality of the research that has been done. On the contrary, it is paradoxical,
given the rapid expansion of the outer suburbs. The explanation is perhaps two fold.
First, and quite understandably, it is the older middle ring industrial suburbs that have
endured the most disadvantage in recent times (Randolph and Holloway, 2005)
although even these it can be argued have not secured the attention they warrant.
Second, there has been a tendency for suburbs in general to be painted out of the
picture in the ‘discourse of globalisation’ with the attention of policy makers and
analysts diverted to the core region as the locale where ‘international connections’ or
‘globalising tendencies’ are seen as more pivotal to economic development, or simply
more interesting (Fagan, 1997).

Recently regional studies have emerged which have begun to bridge this gap in
knowledge. O’Connor and Healy (2002) examined the relationship between housing
markets and labour markets across Melbourne. Dodson and Berry (2003, 2004)
examined trends in Melbourne’s West and Fagan and others in Sydney’s West (Fagan
et al., 2004; Fagan and Dowling, 2005). Study of Melbourne’s northern region
specifically is confined to O’Connor’s study of the early 90s (O’Connor, 1993).

THE MANY FACES OF WHITTLESEA

The first observation about Whittlesea is that it is diverse - in terms of land use,
population distribution and as we shall see, the socio-economic status of its residents.
Whittlesea is Melbourne’s northern most suburb. 70% of the municipality is in fact
non-urban land use and it is only the southern third or so which at present constitutes
the built up area. Whittlesea is one of four fringe urban growth areas designated in the
state government’s metropolitan strategic plan, and one of five Local Government
Areas (LGAs) with industrial land designated in the Victorian Planning Provisions as
being of state significance, or in other words, to be protected as such and developed
in the future (DSE,2005; CoW, 2005). In the next 25 years green field sites will be
developed for residential and employment purposes and the current population of
124,000 is anticipated to grow by 100,000 in the next twenty years. The Western Ring
Road is a significant transport route running directly adjacent to the Thomastown
industrial area, and continuing west through Hume to the international airport.

Across the 1991, 1996 and 2001 Censuses, unemployment in Whittlesea fell steadily
while remaining slightly above the metropolitan wide figure. It was never as high as
the ‘disadvantaged old manufacturing communities’ of Darebin and Moreland, to its
south.

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Figure 3. The Regional Context - Melbourne’s North. Source: DSE, 2002.

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      18.00
                                                                                1991
      16.00                                                                     1996
                                                                                2001
      14.00

      12.00

      10.00
  %
       8.00

       6.00

       4.00

       2.00

       0.00
              Melbourne as a whole   Whittlesea   Hume     Darebin        Moreland

Figure 4. Unemployment in Melbourne’s North, Census Years.
Source: ABS, 2003a.

In terms of jobs growth, Whittlesea, like all western and northern outer councils, saw
strong job growth between 1996 and 2001.

Figure 5 Jobs growth by Statistical Local Area, Melbourne, 1996–2001.
Source: Dodson, 2003

We can focus more closely on the significance of job growth and loss across the
northern region by comparing it with working age (20-64) population growth and loss.

As we saw in Table 1, studies of ‘opportunity’ and ‘vulnerability’ based on statistical
analysis of 1996 ABS data regard Whittlesea as neither overtly advantaged nor
disadvantaged but ‘marginal’. At first glance, this ‘middling’ position would seem to
be confirmed by generally encouraging figures: lowering unemployment, high job
growth which is almost matching growth in the working age population and as we
will see shortly, a manufacturing sector which at least is holding steady as the major
employer. Other indicators are more troubling. At each census the ABS also

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                          10000
                                                                      Wking age population incr 96-01
                                                                      Jobs loss/gain 96-01
                           8000

                           6000
    Nos. of working age

                           4000

                           2000

                             0
                                  Hume   Whittlesea        Moreland               Darebin

                          -2000

                          -4000

Figure 6. Growth in Jobs and Working Age Population (20 to 64 y.os.) in
Melbourne’s North, 1996 -2001.
Source: ABS, 2003b Census of Population and Housing 2001 Census unpublished labour force
data
calculates an index of disadvantage - a measurement incorporating indicators such as
low income, low educational attainment, high unemployment and the number of low-
skilled jobs (ABS, 2003c). According to this measurement, at the 2001 census, of the
ten most disadvantaged LGAs in Melbourne, areas, four – Hume (third most
disadvantaged), Whittlesea (fourth), Darebin (fifth) and Moreland (sixth) are in
Melbourne’s North. That is, Whittlesea was rated as being in a worse position than the
‘old industrial’ suburbs of Darebin and Moreland to its south and with Hume was
clearly the most disadvantaged fringe LGA in metropolitan Melbourne. Moreover,
Randolph and Holloway (2005) found it was one of only four LGAs where the
number of collector districts 4 suffering ‘severe disadvantage’ saw a marked increase
between 1996 and 2001. Of course it could be argued that Whittlesea is now catching
up from a particularly adverse position, and this explains its failure to date show a
more desirable disadvantage index in spite of the other positive ABS figures. But this
is not really the case. As we have seen, it never saw the levels of unemployment of
Darebin and Moreland, and severe disadvantage increased between 1996 and 2001.
The question is then if the number of jobs in Whittlesea continues to grow, and
indeed, if its unemployment rate continues to fall, why does it register such
disappointing results in regard to disadvantage and what might this have to do with
the nature and operation of its labour market?

RESEARCH QUESTIONS

There are a number of indicators that could be investigated in an attempt to answer
this puzzle that go beyond or build on the variables covered in the Index of
Disadvantage. It is highly likely that deeper trends are hidden behind bald labour
figures provided by the ABS (Mitchell and Carlson, 2000; Barrett, 2005). One hour’s
work a week is the minimum threshold for registering someone as employed. Clearly
this does not necessarily tell us very much about one’s social-economic position, nor
about one’s relationship with the labour market. This leads us to five areas of
investigation that we will explore in this paper. First, what is the character of the local
labour market and in particular what is its shade in terms of a new/old economy
continuum? Second, what is the skill composition of the workforce? Third, what role
4
    An ABS measurement of usually 200 to 300 households.

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does part-time employment play in the labour market profile and what can be said
about its contribution to disadvantage? Fourth, what is the significance of those not
detected by the unemployment figures at all – those who drop out of the labour market
either intermittently or permanently and in doing so lose wage earning capacity? Fifth,
do the generally improved jobs growth and unemployment figures for Whittlesea as
whole mask stratification within its borders and how might this inequality be
explained?

THE CHARACTER OF THE LOCAL LABOUR MARKET

First we will examine the key characteristics of labour market participation by
Whittlesea residents and jobs within Whittlesea through a close examination of 1991,
1996 and 2001 Time Series Census data and the more comprehensive 2001
Community and Working Population Profiles (ABS, 2003a, 2003d, 2003e). The
subtext to this part of the discussion is the prominence or otherwise of well paid
secure jobs with a future in the global economy – the ‘prime jobs’. Different authors
have developed variations on this theme. The prime jobs are those of symbolic
analysts (Reich, 1992), the creative classes (Florida, 2002), C21 workers (Brain,
1999) or the new economy (O’Connor and Healy, 2002). While some blurring at the
edges may remain, the categories the present study has inherited via the ABS data that
most closely fit these descriptions are the occupations of managers/administrators and
professionals and the industries of finance and insurance, property and business
services and cultural and recreational services. Recent work has confirmed that
growth in full time permanent jobs is increasingly concentrated in these sectors
(Borland et al., 2001). The other side of the ledger, the antithesis perhaps, are the ‘old
economy’ jobs. These are vulnerable due to reductions in tariff and subsidies, a low
skill base and new technology 5 .

Labour Market Participation By Whittlesea Residents.
Over the three census periods manufacturing clearly remained the main employer of
Whittlesea residents with 11,000 out of a working population of just under 50,000, or
around 23% finding work in this sector in 2001 (Figure 7). There was negligible
growth however and given the increase during this period in the working age
population of around 7,000 the sector would appear to be in slow but by no means
drastic decline. In comparison with metropolitan Melbourne as a whole (where the
Census figures show a decline from 17.3% in 1996 to 15.9% in 2001) in 2001 it
clearly employed a higher proportion of Whittlesea residents. As can be seen in
Figure 8 below, this has remained the case over a ten year period, with the ratio of
manufacturing jobs held by Whittlesea residents to those held by Melbourne workers
as a whole hovering between 1.4 and 1.5.

Other areas where the proportion is above metropolitan wide percentages include
construction, transport/storage and retail trade. All recorded increases with retail trade
seeing the highest increase in job numbers of all sectors. Deficits were maintained
across a wider range of sectors: all the prime job sectors of finance and

5
  Classification here is more complex. Most sub-sectors in manufacturing would appear to fit this bill.
Having said that, some manufacturing industries are clearly more sophisticated and export-orientated
(‘elaborately transformed’) than others. Such sub-categories include printing, publishing, media, and
the manufacture of photographic, scientific, electronic, medicinal and pharmaceutical products and
equipment (O’Connor and Healy, 2002). .

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    14,000
    12,000
    10,000
                                                                                                                                                                                                                                                                                                                                                                                                                                        1991
      8,000
                                                                                                                                                                                                                                                                                                                                                                                                                                        1996
      6,000                                                                                                                                                                                                                                                                                                                                                                                                                             2001
      4,000
      2,000
                0

                                                                                                                                                     Accomm, Cafes & Restaurants
                                                                                         Utilities
                                                                   Manufacturing

                                                                                                     Construction

                                                                                                                                      Retail Trade
                                                 Mining

                                                                                                                                                                                                                           Finance & Insurance

                                                                                                                                                                                                                                                                                                                       Education

                                                                                                                                                                                                                                                                                                                                          Health &Comm Services
                                                                                                                                                                                                                                                                                          Govt Admin & Defence
                                                                                                                                                                                                           Comm Services

                                                                                                                                                                                                                                                                                                                                                                      Cultural and Recreational Services
                                                                                                                                                                                   Transport and Storage
                    Ag, Forestry & Fishing

                                                                                                                                                                                                                                                                                                                                                                                                                Pers & Other Services
                                                                                                                    Wholesale Trade

                                                                                                                                                                                                                                                      Property and Business Services
Figure 7 Number of Residents Jobs by Industry, 1991-2001.
Source: ABS, 2003a.

insurance (which recorded negligible growth in numbers), property and business
services and cultural and recreational services as well as accommodation, cafes and
restaurants, education and health and community services. Most job losses were in
absolute terms were in the area of government administration and defence.

    2.00
                                                                                                                                                                                                                                                                                                                                                                                                                             1991
    1.80                                                                                                                                                                                                                                                                                                                                                                                                                     1996
                                                                                                                                                                                                                                                                                                                                                                                                                             2001
    1.60

    1.40

    1.20

    1.00

    0.80

    0.60

    0.40

    0.20

    0.00
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Figure 8. Ratio of Whittlesea residents jobs to Melbourne SD by industry.
Source: ABS, 2003a

Over the decade, job growth by occupation type occurred almost across the board,
although there has been a quite significant shift in the most prominent occupations.
Tradespersons and related workers, although continuing to grow, have been overtaken
as the leading occupation of choice by the phenomenal growth of intermediate clerical
and sales and service workers 6 , from under 5,000 in 1991 to almost 9,000, or almost
18% of jobs in 2001. This is not the case for the next step on the ‘ladder of
opportunity’ for this group, in ‘advanced clerical and service workers’ - the only
sector to see a steady decline from around 2,500 to 1,500 jobs. The prime occupation

6
 According to the ABS definitions of occupational groupings, intermediate clerical, sales and service
workers ‘…perform a range of clerical, sales, and service tasks requiring a limited degree of discretion
and judgement’ (McLennan, 1997:421).

Labour Market Issues Melbourne’s North                                                                                                                                                                                                                                                                                                 CITY ECONOMY 05-12
City Economy 05

of professionals saw a strong increase – from around 3,000 in 1991 to 5,000 ten years
later. Managers and administrators less so – a slight increase from just below to just
above 2,000 jobs over the decade. Occupations most prominent in manufacturing
continued to dominate: intermediate clerical, sales and service, tradespersons and
related, labourers and related and intermediate production and transport together
constituted over half of all residents’ jobs.

                            10,000

                             9,000

                             8,000
  no. of worker residents

                             7,000

                             6,000
                                                                                                                                                                                                          1991
                             5,000                                                                                                                                                                        1996
                                                                                                                                                                                                          2001
                             4,000

                             3,000

                             2,000

                             1,000

                                0
                                     Advanced Clerical     Associate     Managers and       Professionals      Elementary        Tradespersons     Intermediate      Intermediate      Labourers and
                                       and Service       Professionals   Administrators                       Clerical, Sales     and Related     Clerical, Sales   Production and    Related Workers
                                         Workers                                                               and Service          Workers        and Service        Transport
                                                                                                                 Workers                             Workers           Workers

Figure 9 Number of Residents Jobs by Occupation, 1991-2001.
Source: ABS, 2003a

 2.00
 1.80
 1.60
 1.40
 1.20
 1.00
 0.80
 0.60
 0.40                                                                                                                                                                                              1991
 0.20                                                                                                                                                                                              1996
                                                                                                                                                                                                   2001
 0.00
                                                         Professionals

                                                                         Professionals

                                                                                          Tradespersons

                                                                                                                                                                                         Labourers and
                                                                                                            Clerical and

                                                                                                                                                  Production and
                                     Administrators

                                                                                                                                Clerical, Sales

                                                                                                                                                                    Clerical, Sales
                                     Managers and

                                                                                                             Advanced

                                                                                                                                 Intermediate

                                                                                                                                  and Service

                                                                                                                                                                     and Service
                                                                                                                                                   Intermediate
                                                                                           and Related

                                                                                                                                                                     Elementary
                                                                          Associate

                                                                                                             Workers
                                                                                                              Service

                                                                                                                                                     Transport

                                                                                                                                                                                           Workers
                                                                                                                                   Workers

                                                                                                                                                                       Workers

                                                                                                                                                                                            Related
                                                                                             Workers

                                                                                                                                                     Workers

Figure 10. Ratio of Whittlesea residents jobs to Melbourne SD by occupation.
Source: ABS Time Series Data, Whittlesea and Melbourne SD Community Profiles

Analysis of how these comparisons between Whittlesea and Melbourne as a whole
influence overall income is beyond the scope of the present paper. Total average
weekly income figures do show a divergence over the decade between Whittlesea and
the whole of Melbourne in terms of individual income but not family income,
although Whittlesea has remained below Melbourne (Table 2). Household units
(which may include non-family members) are on par with Melbourne as a whole, at
least in terms of the rather broad income ranges used by the ABS. Possibly, this
suggests that having more than one family member in the workforce is an important
strategy for Whittlesea households to raise overall income.

Labour Market Issues Melbourne’s North                                                                                                                                 CITY ECONOMY 05-13
City Economy 05

Table 2. Comparison of Income of Whittlesea residents and Melbourne SD
                                                     1991               1996              2001
 Medium weekly individual income a
 Whittlesea                                     $200-$299         $200-$299          $300-$399
 Melbourne SD                                   $200-$299         $300-$399          $400-$499
 Median weekly family income
 Whittlesea                                     $600-$699         $700-$799          $800-$899
 Melbourne SD                                   $700-$799         $800-$999          $1000-$1199
 Median weekly household income
 Whittlesea                                     $600-$699         $700-$799          $800-$999
 Melbourne SD                                   $600-$699         $700-$799          $800-$999
Source: ABS, 2003a
a. Weekly income is the income before tax, superannuation, health insurance, or other deductions are
made and includes: family allowance, parenting payment, pensions, unemployment benefits, student
allowances, maintenance (child support), superannuation, wages, salary, overtime, dividends, rents
received, interest received, business or farm income (less operation expenses) and worker's
compensation received.

As can be seen in Figures 8 and 10 above, the ratio per sector of local residents’ jobs
to jobs in Melbourne overall has changed very little over ten years. Broadly speaking
then, Whittlesea working residents have over time ‘settled in’ to a particular
configuration of long established employment and occupation types within the
broader metropolitan market, despite the tumultuous economic restructuring, new
technology and economic recession that continued into the 1990s and the increase in
the resident workforce of 18,830 or 27.4%. This is reminiscent of the ‘sorting process’
described by O’Connor and Healy (2002): those of a particular profile or preferences
gravitate (or as they reach working age remain in) areas providing employment and
housing opportunities that align with their career profile, income and lifestyle (in
Whittlesea’s case, the detached suburban family home). In this sense, the labour
market profile of working residents is ‘conservative’. Further evaluation is difficult at
this stage: should this comparative stasis be interpreted as stability or inflexibility?
One thing is clear: in comparison with the whole of Melbourne, there has been very
little movement in the profile of working residents towards new economy jobs and
‘creative classes’ jobs (cultural and recreational services) in relative terms, and with
the exception of property and business services, in absolute terms. Indeed, if we look
more closely, we find a divergence between Whittlesea and Melbourne SD in regard
to these sectors.

Figure 11 shows that employment in ‘population driven’ industries in health and
community services, education, construction and especially retail trade ran ahead of
Melbourne as a whole. Numbers employed in the ‘new economy’ sectors of
property/business services and (to a far lesser extent) finance/insurance grew in real
terms but fell behind in relative terms. Manufacturing, the mainstay of employment
for Whittlesea residents fell behind as an employer.

Labour Market Issues Melbourne’s North                                         CITY ECONOMY 05-14
City Economy 05

      5.00
                                                                                                                                                                                                                                     Whittlesea working residents
                                                                                                                                                                                                                                     Melbourne SD
      4.00

      3.00

  % 2.00

      1.00

      0.00
                                                            Business Services

                                                                                Retail Trade

                                                                                                                                                                                                                                                                              Admin. & Defence
                Manufacturing

                                                                                                                                                                            Accomm. Cafes &

                                                                                                                                                                                              Transport &

                                                                                                                                                                                                                                                           Personal & other
                                Insurance

                                                                                                                           Construction

                                                                                                                                                         Education

                                                                                                                                                                                                                   Wholesale Trade

                                                                                                                                                                                                                                           Communication
                                                                                                Recreational
                                Finance &

                                                                                                                                          Community
                                                                                                                                           Services
                                                                                                 Cultural &

                                                                                                                                           Health &

                                                                                                                                                                                                Storage
                                                                                                 Services

                                                                                                                                                                                                                                                                                Government
                                                                                                                                                                              Restaurants

                                                                                                                                                                                                                                             Services
                                                               Property &

                                                                                                                                                                                                                                                               services
      -1.00

Figure 11. Jobs growth by industry sector 1996-2001 as a proportion all jobs in
1996, Whittlesea working residents and Melbourne SD compared.
Source: ABS, 2003a
a. Jobs growth per sector 96-01 over total jobs 1996. For example, Whittlesea saw a growth of 1,709
amongst residents working in the retail sector between 1996 and 2001. The total number of jobs held
by residents in 1996 was 49,685. Jobs growth is for this sector is therefore 1,709/49,685 = .0343 x 100
= 3.43%.

      4.5
                                                                                                                                                                                                                   Whittlesea working residents
        4                                                                                                                                                                                                          Melbourne SD

      3.5

        3

      2.5

        2
  %
      1.5

        1

      0.5

        0
                                                                                                                                            Advanced
                                            Professionals

                                                                                Professionals

                                                                                                               Tradespersons

                                                                                                                                            Clerical &

                                                                                                                                                                                                                                        Labourers &

                                                                                                                                                                                                                                                                  Production &
              Administrators

                                                                                                                                                                     Clerical, Sales

                                                                                                                                                                                                 Clerical, Sales

                                                                                                                                                                                                                                                                  Intermediate
                                                                                                                                             Service

                                                                                                                                                                      Intermediate
               Managers &

                                                                                                                                                                                                                                                                    Transport
                                                                                                                                                                                                  Elementary
                                                                                 Associate

                                                                                                                                                                        & Service

                                                                                                                                                                                                   & Service

                                                                                                                                                                                                                                          Related
                                                                                                                 & Related

      -0.5

       -1

Figure 12. Jobs growth by occupation group 1996-2001 as a proportion all jobs
in 1996, Whittlesea working residents and Melbourne SD compared.
Source: ABS, 2003a

Figure 12 shows a strong bias in jobs growth amongst Whittlesea residents toward the
unskilled professions on the right of the graph and conversely not keeping pace with
growth across Melbourne in the skilled managers/administrators and professionals to
the left. The rate of growth for tradespersons and associate professional compensates
for these deficits in these well paid professions so that the overall trends in the
proportion of skilled and unskilled jobs held by residents has remained similar over
time (Tables 3 and 4).

Labour Market Issues Melbourne’s North                                                                                                                                                                                                CITY ECONOMY 05-15
City Economy 05

SKILL COMPOSITION OF THE RESIDENT WORKFORCE

There are two points to made in regard to Tables 3 and 4 below. First, if we consider
Whittlesea working residents as an entire group, there is clearly a lower skill profile
than Melbourne as a whole. Second, amongst Whittlesea working residents, and
indeed amongst all Melbourne workers, there has been negligible change in the
proportions of high skilled and unskilled workers.

Table 3. Skill levels, Melbourne SD, Recent Census Years (%)
                                                                           nos.
                                                                         change
Occupation                                  1991      1996       2001
                                                                          91-01
                                                                           (%)
Associate Professionals                     8.0        11.7      11.7      71.2
Managers & Administrators                   8.8        8.1       8.5       19.3
Professionals                               17.8       19.6      21.0      45.6
Advanced Clerical & Service                 7.7        4.8       4.0       36.1
Tradespersons and Related                   14.4       13.0      12.0       2.5
High skilled total                          56.6       57.2      57.3      24.3
Intermediate Clerical, Sales & Service      13.3       16.7      17.2      59.1
Elementary Clerical, Sales and Service      11.9       9.3       9.9        2.1
Intermediate Production and Transport        9.2        9.0       8.1       8.1
Labourers and Related Workers               9.0        7.8       7.5        3.0
Low skilled total                            43.4      42.8       42.7     21.1
TOTAL                                       100.0     100.0      100.0     n.a.

Other measures
White collar high skilled                   42.2       44.2      45.3      31.7
White collar low skilled                    25.2       25.9      27.1      32.2
White collar total                          67.4       70.1      72.4      31.9
Blue collar high skilled                    14.4       13.0      12.0      2.5
Blue collar low skilled                     18.2       16.9      15.6      5.6
Blue collar total                           32.6       29.9      27.6      4.2

Source: ABS, 2003a.

Labour Market Issues Melbourne’s North                               CITY ECONOMY 05-16
City Economy 05

Table 4. Skill levels, Whittlesea, Recent Census Years (%)
                                                                                 nos.
                                                                                 change
                                                                                 91-01
 Occupation                                      1991      1996        2001      (%)
 Associate Professionals                          6.5        9.3         9.6        94.7
 Managers and Administrators                      4.7        4.5         4.6        29.3
 Professionals                                    8.7        9.7        10.7        62.0
 Advanced Clerical & Service                      6.6        4.0         3.4        31.6
 Tradespersons and Related Workers               17.2       16.5        15.6        19.5
 High skilled total                              43.8       44.0        43.9        32.6
 Intermediate Clerical, Sales & Service          13.1       17.0        18.5        87.7
 Elementary Clerical, Sales & Service            12.7       10.5        11.8        22.8
 Intermediate Production & Transport             16.4       15.7        13.8        11.5
 Labourers & Related                             14.0       12.7        11.9        13.3
 Low skilled total                               56.2       56.0        56.1        32.2
 TOTAL
 White collar high skilled                       26.6       27.5        28.3       41.02
 White collar low skilled                        25.8       27.6        30.3       55.69
 White collar total                              52.4       55.1        58.6       48.25
 Blue collar high skilled                        17.2       16.5        15.6          20
 Blue collar low skilled                         30.4       28.4        25.8       12.33
 Blue collar total                               47.6       44.9        41.4       14.92
Source: ABS, 2003a.

Again we see the ‘stasis’ characteristic of Whittlesea’s labour market noted above, in
spite of the shifts within the skilled and unskilled categories we identified in Figure
12. What can we discover about Whittlesea jobs?

Table 5. Skill Levels. 2001 Census, Melbourne SD and Whittlesea Jobs (%)
                                                                     Melbourne
                                                        Whittlesea
                                                                        SD
 Managers & Administrators                                  7.3         8.3
 Professionals                                             16.3        20.6
 Associate Professionals                                    9.0        11.4
 Advanced Clerical & Service                                3.0         3.9
 Tradespersons & Related                                   14.8        11.8
 High skilled                                              50.4        56.0
 Intermediate Clerical, Sales & Service                    14.3        16.9
 Elementary Clerical, Sales & Service                      10.6         9.7
 Intermediate Production and Transport Workers             13.2         7.9
 Labourers and Related Workers                             10.6         7.4
 Low skilled total                                         48.6        42.6
 TOTAL                                                    100.0        100.0

 Other measures
 White collar, high skilled                                35.5        44.3
 White collar, low skilled                                 24.8        26.5
 White collar total                                        60.4        70.9
 Blue collar, high skilled                                 14.8        11.8
 Blue collar, low skilled                                  23.8        15.3
 Blue collar total                                         38.6        27.0
Source: ABS, 2003d, 2001f

Although the data in this case does not allow us to identify trends over time, it is clear
that in 2001 Whittlesea jobs provided a lower skill profile than Melbourne as a whole
– but this discrepancy is not a as marked as that between Melbourne SD and

Labour Market Issues Melbourne’s North                                  CITY ECONOMY 05-17
City Economy 05

Whittlesea working residents. The explanation for this lies mainly in the fact that
managers/administrators and professionals are the only classifications where the
number of jobs in Whittlesea match the number of jobs held by residents (Figure 14) –
figures made all the more significant when we recall that only about 25% of
Whittlesea working residents work in Whittlesea.

Comparison of qualifications supports the data on the skill levels of the local
workforce. Note that although the rate of increase in the number of tertiary educated
residents has outstripped the rate of increase for metropolitan Melbourne (and the
numbers for postgraduate qualifications remains very small, growing from 180 in
1991 to 463 in 2001), the gap in the proportions of the population with this level of
education has widened. The proportion of residents with no qualifications has
certainly decreased but less than for Melbourne SD.

Table 6. Qualifications for Persons Aged 15 years and over 1991-2001,
Whittlesea and Melbourne SD
                                         Melbourne SD                           Whittlesea
                                                         Growth                               Growth
 Qualification                 1991      1996    2001    91-01c     1991     1996    2001      91-01
 Post Graduate degree            1.1       1.4    2.1     108.5      0.3      0.4     0.4      157.2
 All tertiary qualifications     9.3     12.8     16.1    90.5       3.5      5.5     6.8      153.3
 Advanced Dip. & Certs.        17.1      17.8     19.2    87.8      15.1      16.7   18.6       56.9
 No qualifications a            60.3      56.6    51.1     -3.2     70.0      67.1   63.9       16.2
 Not stated b                   12.2      11.4    11.4      3.1     11.2      10.5   10.3       18.8
 Total                         100.0     100.0   100.0      n.a     100.0    100.0   100.0       n.a
Source: ABS, 2003
   a. Includes ‘inadequately described’
   b. Includes persons who do not have a qualification and persons who have a qualification out of
        scope of the Australian Standard Classification of Education
   c. Growth in absolute numbers

The relationship between local jobs and local residents
The interrelationship between the nature of jobs available locally and jobs which
locals actually hold is an obvious but by no means straightforward issue. In all fringe
LGAs in Melbourne, working residents greatly outnumber local jobs (with the
exception of Hume with a local job/local worker ration of 0.89). In Whittlesea’s case
the ratio of local jobs to local workers is 0.52. Looked at another way, the proportion
of Whittlesea working residents who work in Whittlesea is 28%. Self-containment for
other outer LGAs is Casey (25.6%), Wyndham (35.2%), Cardinia (37.9%) and Hume
(36.1%) (ABS, 2003b).

Unfortunately we do not have journey to work data by occupation and industry. We
do know that most of the three quarters of residents with jobs outside the municipality
gravitate towards the ‘old industrial’ area of Darebin to the south, (12.7%), the City of
Melbourne (12.6%), and the manufacturing stronghold of Hume (10.2%) (City of
Whittlesea, 2005).

Labour Market Issues Melbourne’s North                                      CITY ECONOMY 05-18
City Economy 05

                                                                                                                                                                                                                                                                                  No. jobs in
  14,000
                                                                                                                                                                                                                                                                                  Whittlesea
  12,000
                                                                                                                                                                                                                                                                                  No. of jobs
  10,000                                                                                                                                                                                                                                                                          held by
                                                                                                                                                                                                                                                                                  residents
   8,000

   6,000

   4,000

   2,000

       0

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Figure 13. Industries - comparing jobs of Whittlesea residents with Whittlesea
jobs, 2001 Census
Source: ABS Expanded Community Profile and Working Population Profile, Melbourne SD and
Whittlesea

In Figure 13, manufacturing and health and community services stand out as the
industries with large numbers of workers that are most self-contained. Indeed, self
containment within the main manufacturing sub groups is high: 73% for food and
beverages, 75% for the textiles group, 91% for the petroleum group and 41% for
machinery and equipment (ABS, 2003g). But the new economy sectors of finance,
insurance, property and business services have the lowest levels of self-containment.
Combined with the data in Figures 7 and 8 this indicates that new economy links are
weak, both in terms of the local labour pool and local jobs. As a disproportionate
number of these jobs are located in inner Melbourne (O’Connor and Healy, 2002),
this in all probability is where these Whittlesea residents commute. The only industry
where there is a clear deficit in the labour supply of working residents is education.
                                                                                                                                                                                               No. jobs in Whittlesea
  8000
                                                                                                                                                                                               No. of jobs held by
                                                                                                                                                                                               residents
  7000

  6000

  5000

  4000

  3000

  2000

  1000

      0
                Advanced Clerical      Elementary Clerical,          Tradespersons           Intermediate Clerical,                    Intermediate                   Labourers                         Associate                     Professionals                     Managers and
                   and service          sales and service                                      sales and service                      Production and                                                  professionals                                                     adm inistrators
                                                                                                                                         transport

Figure 14. Occupations - comparing jobs of Whittlesea residents with Whittlesea
jobs, 2001 Census.
Source: ABS, 2003 Expanded Community Profile and Working Population Profile, Melbourne
SD and Whittlesea

For occupations, there are clear surpluses in local labour supply with the notable
exceptions of the two most well paid and secure sectors – professionals (which
includes teachers) and managers and administrators. As we saw in Figure 9, the rate
of increase in the number of professionals, from around 3,000 to 5,000 between 1991
and 2001, suggests the gap is closing over time. The growth rate for managers and
administrators has been modest.

Labour Market Issues Melbourne’s North                                                                                                                                                                                                    CITY ECONOMY 05-19
City Economy 05

PART-TIME WORK IN WHITTLESEA: GROWTH TRENDS IN
DIFFERENT INDUSTRIES AND OCCUPATIONS

Part-time and casual work has increased dramatically in Australia recently, and the
implications of this trend have been discussed widely amongst academic as well as
media commentators (Campbell et al., 2005). We do not have data on casual
employment at the LGA level. As 70% of part-time work in Australia is casual, much
of what we have to say about part-time work probably applies to casual work as well.
We have seen how job growth for Whittlesea residents, has, at a sectoral level,
diverged from that of Melbourne as a whole and is becoming more ‘population
driven’ (Figure 11 and 12). The question is then to what extent does this divergence
influence the rate of part-time work?

Table 7. Hours Worked and Jobs Growth, Selected Sectors, Whittlesea Working
Residents
____________________________________________________________________
                                                               Jobs
                                                              growth
                                          Part-    Standard    1996-     Total no.
                                          Time b      Hrs c    2001      of jobs d
 Industries a
 Cultural & recreational services          44         39       50            848
 Accommodation, cafes, restaurants         48         29       49           1,648
 Property & bus. services                  28         43       33           4,404
 Construction                              15         51       31           3,596
 Retail trade                              45         31       30           7,999
 Education                                 36         29       27           2,140
 Health & community services               44         39       20           1,803
 Personal and other services               26         44       19           1,580
 Transport and Storage                     18         38        9           2,271
 Govt. admin & defence                     36         56        7           1,128
 Finance & insurance                       28         43        6           1,930
 Wholesale trade                           16         31        5           2,731
 Manufacturing                             11         60      >0.01        11,210
 Communication services                    17         38      -0.05         1,087
 Occupations
 Elementary clerical, sales & service      60         25       28          5,521
 Professionals                             23         45       25          5,067
 Intermediate clerical, sales & service    23         35       24          8,744
 Associate professionals                   16         42       18          4,544
 Managers & Administrators                 23         45       16          2,212
 Tradespersons & related                   12         56       7           7,216
 Labourers & Related                       33         49       7           3,125
 Advanced clerical & service               38         45       2           1,604
 Intermediate production & transport       15         53       >1          6,457
______________________________________________________________________________
Source: ABS, 2003a, 2003g.
    a.  Primary industries and utilities excluded due to very low nos.
    b.  1 to 34 hrs per week
    c.  35 to 40 hrs per week
    d.  Excludes small no. of ‘not stated’ and ‘inadequately described’ responses

We are not concerned with hours worked in excess of standard hours, as this opens up
a new field of enquiry beyond the scope of the present paper (see Healy, 2000 and
Burbridge and Sheehan, 2000 for trends and implications). From Table 7, a general
observation can be made: as we move up the ‘job growth ladder’, the more likely are

Labour Market Issues Melbourne’s North                                CITY ECONOMY 05-20
City Economy 05

we to find a large proportion of part-time jobs. The inverse is also generally apparent:
those jobs with the lowest rates of part-time work also have the lowest rates of growth
(and the highest proportion of standard hours jobs). One sector which runs against the
trend is advanced clerical and service. Although a high number (38%) of jobs in this
sector were part-time, jobs growth has been minimal. This is the only skilled sector to
display both a high rate of part-time work and low rates of growth. In other words, the
main source of high skilled part-time work is in decline. While space denies us much
discussion of part-time jobs within Whittlesea, it can be confirmed that the part-
time/full-time mix is generally similar across sectors (ABS, 2003d).

It is difficult to draw firm conclusions on whether the character of job growth
amongst residents is leading to a disproportionate level of part-time employment
relative to the whole of Melbourne. The trends in job growth suggest a propensity for
part-time work is developing, and this is backed by what trend data the ABS makes
available. In Figure 7 we noted most job growth in the ‘population-driven’ sectors of
retail trade, health and community services, education and construction. All bar
construction are in the top five in terms of proportions of part-time work. While these
rankings are very similar for Melbourne as a whole, growth in these sectors is still
outpacing Melbourne. A similar picture emerges in regard to occupations. When we
turn to the aggregated trend data, we find that from a situation in 1991 where 21.9%
of residents worked part-time compared with a metropolitan-wide figure of 25.4%, by
2001 the gap had closed so that the figures were 28.9% and 31.1% respectively.

The proportion of part-time work amongst the ‘new economy’ professions is lower in
Whittlesea. As full-time permanent job growth Australia-wide is concentrated in
skilled white collar professions, this implies that part-time work in these sectors is
more likely to be by choice than necessity and therefore, Whittlesea residents may be
facing limited choice in regard to the hours they work.

A further point is that tradespersons, production and transport and labourers
occupations also have a higher proportion of part-time work than the whole of
Melbourne. To generalise, these are more likely to be male-dominated occupations.
To generalise further, we would not expect such a demographic group, in such
occupations, to embrace part-time work ‘voluntarily’. At one level, part-time work
only represents labour market disadvantage for the individual worker if such workers
prefer to work full-time. In other words, part-time work may indeed be quite
advantageous if it accords with personal requirements. It is important then to consider
the extent to which this is the case in Whittlesea if we are to evaluate the part-time
labour market in terms of disadvantage. There are several possible explanations for
any increase in part-time (and casual) work (Borland et al., 2001; Campbell et al.,
2005). Some of these reflect in large measure ‘worker choice’: demographically
driven preferences (mothers caring for children, grown up offspring caring for elderly
parents) and education needs (an increasing number of tertiary students). It is
reasonable to argue then that the three most relevant demographic groups that create
the demand for part-time work are women in their thirties who might be caring for
dependent children and mid to late year secondary and tertiary students. Conversely,
the group least likely to seek part-time work may be men aged 40-54. Table 8 shows
the status of these groups in regards to actual part-time work, preferences for part-
time work and unemployment.

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Table 8. Key Demographic Groups and Part-time Work, Whittlesea and
Melbourne SD, 2001
                                                                  % unemp.
                      % working part-              %          looking for p/time
                             time            unemployed             work
 Age group            Whittlesea Melb.     Whittlesea Melb.   Whittlesea Melb.
 Working women
 15+                     44.9       45.1      8.1      7.0       41.5        45.9
 Working women
 30-39                   48.7       45.0      7.4      6.1       47.0        44.0
 Working persons
 15-24                   41.6       48.7     14.3     15.3       35.7        45.4
 Working men 40-
 54                      12.5       12.0      5.9      5.6       8.1         9.9
Source: ABS, 2003b.

The data in Table 8 shows little variation between Melbourne SD and Whittlesea,
however two exceptions are worthy of comment. First, there is comparatively less
interest and involvement by the 15-24 age group in part-time work, although why this
may be is unclear. Second, while the proportion of working men aged 40-54 working
part-time is slightly higher than Melbourne-wide, it is clearly lower for those seeking
it. We must be wary in generalising, but this hints that relative to Melbourne as a
whole, this group of Whittlesea residents are comparatively more likely to find
themselves in part-time work when they don’t really want it.

THE LABOUR MARKET - DROPPING OUT OR STAYING IN? HOW
WHITTLESEA COMPARES

Table 9 reveals that Whittlesea has fared worse than Melbourne SD in terms of labour
market participation amongst the working age population. The gap has widened
considerably between the 1991 and 1996 Census, in spite of the decline in
unemployment, which was similar in the rate of decline for Melbourne SD (Figure 4).
To explore this trend further, figures for males between the ages of 40 and 54
specifically were examined. This was the traditional bread winner cohort during the
‘long boom’ of the third quarter of the twentieth century (Fagan et al., 2004). At the
very least this age group still represents the key years for potential earning capacity
and expenditure for males. The Whittlesea group, as a proportion of all working age
persons, is greater by a factor of four and half in comparison with the Melbourne-wide
figure, which at the 2001 Census represented 1,533 persons. One explanation is that
significant numbers of men who are now in this age group were retrenched in the
early 90s (at the 1991 Census, unemployment reached 13%) and were not looking for
work when the 2001 Census was taken. This may explain the numbers but not the
discrepancy, as this group saw high unemployment all over Melbourne in this period.

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Table 9. Labour Market Participation, Whittlesea compared with Melbourne
SD, 20-64 year age group
                                                     1991   1996   2001

 Whittlesea % of working age population out of the   22.5   26.8   27.6
 workforce

 Melbourne CD % of working age population out of
                                                     22.0   23.6   23.1
 the workforce

 Whittlesea % of men 40-54 yo out of workforce
                                                     4.0    7.9    8.2
 over total working age population.

 Melbourne SD % of men 40-54 yo out of workforce
                                                     0.9    1.2    1.8
 over total working age population.

Source: ABS 2003a.

STRATIFICATION WITHIN WHITTLESEA

Fagan et al., (2004), Dodson (2003) and Dodson and Berry (2003) found pockets of
high unemployment persisted within LGAs recording strong employment growth.
Dodson and Berry’s study of Melbourne’s west also focussed on the impact on
unemployment of master planned housing estates (in particular Caroline Springs), the
Western Ring Road and investment in industrial development. Not only did they find
that these developments did not decrease local employment relative to the general
decline in unemployment across metropolitan Melbourne, but polarisation in
unemployment levels had developed between the estates (low employment) and
adjacent areas (high employment). Given these recent findings, it would be useful to
examine Whittlesea in light of the fact that master planned housing estates, a freeway
connecting the Hume Highway and Western Ring Road and two new industrial and
high technology estates are either already being built or are planned for construction
in the near future (DSE, 2003). The following maps were compiled from 2001 Census
data at the collector district level. There is any number of socio-economic factors that
could be examined, but for this preliminary paper, skilled trades and migrants were
chosen as both are particularly prominent sub-groups in Whittlesea, with the latter
group traditionally finding a strong source of employment in manufacturing (Fagan
and Webber, 1999). Data was only available for Whittlesea’s established southern
suburbs.

Figure 15 is revealing in a number of respects. It shows a polarisation of levels of
unemployment between the housing estate suburb of Mill Park to the north-east (built
in the 1970s) and the older residential area to the south west adjacent to the
Thomastown industrial estate and the Western Ring Road (built in the 1950s and
1960s). In other words, unemployment is highest directly adjacent to where low-
skilled employment is also highest. The observations of Fagan et al. (2004) and more
specifically Dodson and Berry (2003) on Melbourne’s west would seem to apply
again here. Whether it is the case that these jobs are taken by outsiders is debateable.
Although Whittlesea as a whole has a self-containment rate of around a quarter, in
2001, the ABS Statistical Local Area (SLA) of Whittlesea South which covers
established suburbs shown here represents at 41%, the fifth highest level of self-
containment of all SLAs in Melbourne. 10,161 out of the 24,551 workers in
Whittlesea South also live there. Furthermore, between 1996 and 2001 it had fifth

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City Economy 05

highest increase in the number of jobs with 4,838 more people finding work in this
SLA (ABS, 2003c).

Figure 15. Established Suburbs In Whittlesea, Rates Of Unemployment, 2001.
Source: ABS CDATA 2001

Figure 16. Whittlesea Migrants with Poor Proficiency in English, 2001.
Source: ABS CDATA 2001

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City Economy 05

Figure 17. Whittlesea Residents with Vocational Qualifications, 2001.
Source: ABS CDATA 2001

Figures 15 to 17 shows concentrated spatial correlations between high unemployment,
low proficiency in English and low levels of vocational qualifications located in the
Thomastown area with the opposite effect apparent in the Mill Park estate area. In
more general terms, this suggests the relationship between housing markets and
labour markets is powerful indeed. As correlations only, all these indicators require
further interrogation, and it will be interesting to see what trends are apparent by the
time of the 2006 Census.

CONCLUSION

This paper began by identifying a contradiction regarding the City of Whittlesea. On
the one hand ABS data showed job growth, declining unemployment and a steady
level of manufacturing employment during the 1991, 1996 and 2001 Censuses. But on
the other hand it showed that by 2001, Whittlesea had a poor ranking in terms of
disadvantage as defined by the ABS Index of Disadvantage. Indeed between 1996 and
2001 the number of collector districts enduring severe disadvantaged had seen one of
the largest increases in Melbourne (Randolph and Holloway, 2005). The author then
examined labour market trends that might advance our understanding of this
contradiction by comparing trends in Whittlesea with Melbourne overall in an attempt
to draw out local characteristics.

First, the configuration of employment patterns amongst Whittlesea residents was
examined and showed a trend towards ‘population driven’ sectors, in particular retail
trade. At a closer level of examination, it also showed a trend away from

Labour Market Issues Melbourne’s North                              CITY ECONOMY 05-25
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