Employability and Labour Under-utilization in Non-Metropolitan Labour Markets

Abstract

This paper addresses labour under-utilization and considers the factors that are associated with under-utilization risk of individuals embedded in diverse non-metropolitan labour market regions. Taking survey and census data for Australian nonmetropolitan regions, this paper applies a broad employability framework that presents the risk of under-utilization as a function of individual characteristics, personal circumstances, and labour market characteristics. The analysis finds that under-utilization is associated with individual characteristics and circumstances plus local labour market conditions. The findings indicate that policy designed to address labour under-utilization needs to focus on the outcomes of a multilevel framework in order to be effective.