Labour underutilisation in metropolitan labour markets in Australia: Individual characteristics, personal circumstances and local labour markets

There has been a growing awareness that the issue of labour market disadvantage is substantially greater than merely considering unemployment and the ability to find a job. There is an increasing literature that points to the advantages of considering a broader concept which accounts not only for those people who are traditionally unemployed, but also for individuals who are underemployed and those who are sub-unemployed or discouraged workers. Taking multidimensional survey and census data for Australian metropolitan regions, this paper applies a broad employability framework to an understanding of labour underutilisation which presents the risk of underutilisation as a function of individual characteristics, personal circumstances and the impact of local labour market characteristics. The analysis finds that the risk of labour underutilisation is associated with a range of individual characteristics and personal circumstances together with the characteristics of the metropolitan local labour market.