Modern Australian
Men's Weekly

.

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

Restaurants Risk Compliance Issues Amid Commercial Plumber Shortage

As demand for housing, roads and facilities increases, so does the demand for trade workers. According to Infrastructure Australia, the construction i...

The Importance Of A Professional Medical Fitout Melbourne For Modern Healthcare Facilities

Healthcare environments must operate with precision, efficiency, and a strong focus on patient comfort. A well-planned medical fitout Melbourne hel...

Top Safety and Comfort Features to Consider in Family Off Road Caravans

Exploring Australia’s coastline, bush tracks or outback locations is far more enjoyable when travelling in a caravan designed for both comfort and...

“Logistical Nightmare” – Rural and Remote Communities Supply Chain Nightmares

Australia’s road logistics need major reform to counteract the supply chain issues that are hitting rural and regional communities hard. With 80% of...

The Importance Of Quality Bait Boards For Boats To Enhance Fishing Efficiency And Comfort

Fishing enthusiasts understand that having the right equipment on board makes every trip smoother and more enjoyable. One essential accessory for an...

The Essential Safety Gear Every Tradesman Needs

Across industries like construction, electrical work, plumbing, carpentry, and welding, workers face hazards every single day. For tradesmen, having...

Best POS System Features That Boost Customer Experience

Source: Unsplash Starting and scaling a retail business is unlikely possible without an effective Point of Sale (POS) system. It is the tech heartbe...

Understanding SMSF Setup Online and Why More Australians Are Choosing Digital Fund Establishment

liManaging your own superannuation gives you greater control over investments, retirement planning, and long-term financial decision-making. As inte...

Double Carport: Complete Guide to Design, Cost, and Installation

A double carport provides practical, cost-effective protection for two vehicles whilst adding value and functionality to your property. Whether you're...

How External Blinds and Awnings Improve Comfort, Privacy, and Energy Efficiency

Outdoor comfort and protection are essential for homes and commercial properties, especially in regions with strong sunlight, high UV exposure, and ...

Worksite Comfort Upgrades That Boost Team Productivity

Jobsite productivity doesn’t depend solely on tools, training, or scheduling. It also hinges on something often overlooked: worker comfort. When e...

NDIS Occupational Therapy: Your Complete Guide to Accessing Support and Services

Occupational therapy plays a crucial role in helping NDIS participants achieve their goals and improve their daily living skills. For people with disa...

How to Start Trading Futures in Australia: Markets, Margin and Regulation

Futures trading has become increasingly popular among Australian traders seeking opportunities across global commodities, indices, currencies and ener...

The Importance Of Residential Scaffolding For Safe And Efficient Home Projects

Home construction and renovation projects require reliable access systems that prioritise both worker safety and structural stability. Whether the p...

Understanding All on 4 Dental Implants and Their Benefits for Full Mouth Restoration

Tooth loss can affect daily life in many ways, including chewing difficulties, speech problems, facial changes, and reduced confidence. Modern denti...

Why Removalists Are Essential for a Smooth, Safe, and Hassle-Free Moving Experience

Moving homes or offices can be overwhelming, especially when you’re trying to balance packing, organising, heavy lifting, and time-sensitive deadl...

Understanding Domestic Violence Orders in Queensland

Domestic violence is an issue that affects many households. This article will break down the key aspects of Domestic Violence Orders (DVOs) in Queen...

Why A Smart Lock Is Becoming An Essential Upgrade For Modern Home Security

Homeowners today are placing greater importance on security, convenience and technology in their living spaces. One of the most significant advancem...