Business News

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[1]. Today it will take evidence in Elizabeth[2], in what used to be Adelaide’s industrial north.

Should it be higher[3]? Should recipients be paid with a cashless card[4]? Or drug tested[5]? Or stripped of their payments if they join climate protests[6]?

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?[7]

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[8].

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.

image 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[9] 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[10].

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.

image 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. image 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[11], 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. image 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[12] 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. image 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[13] 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

Digital Agency

Business Daily Media Business Development

Accor and Visa form global partnership

Accor, a world-leading hospitality group, and Visa (V: NYSE), the global leader in digital payments, yesterday (the 18th of February) announced a global partnership to bring new payment expe...

Media Release - avatar Media Release

Cruise Guru Celebrates CLIA Award Win with Offer for Australian Travellers

Leading Australian cruise agency, Cruise Guru, has been named ‘2019 Online Cruise Agency of the Year’ at the 19th Annual Cruise Industry Awards hosted by Cruise Lines International Associati...

Rhea D'souza - avatar Rhea D'souza

Exciting Things About Sydney

Sydney is one of Australia’s largest cities that boasts a population of over 4 million people. It is a city that is famous for its picturesque views, multicultural people, superb weather, ...

News Company - avatar News Company

Accor announces new partnership with Grab to help members Live Limitless

Accor has announced a new strategic partnership between its new lifestyle loyalty programme, ALL - Accor Live Limitless and South East Asia’s leading super app, Grab. The deal brings toget...

Accor Pacific - avatar Accor Pacific

Upgrading to Deep Pocket Sheets

So, you have this amazingly comfortable bed that has a built-in topper and you are struggling to find the right bedding. You need to look for a sheet called deep pocket sheets or mega fi...

News Company - avatar News Company

Food you need to try in Beijing

Beijing is a beautiful and interesting destination for any kind of traveler. However, foodies will find a new heaven and will be able to try out tasty, flavorful and sometimes very special...

News Company - avatar News Company

Business Daily Media Business Reports

Di Jones real estate recognises high achievers

Di Jones celebrated its outstanding performers on Saturday (24 February 2018) evening at the Di Jones Real Estate Annual Awards.                               The bla...

Helen Hull - avatar Helen Hull

Eclipse Travel Expands Operations to New Zealand

Eclipse Travel, specialists in key adventure destinations such as Antarctica, the Arctic, Africa and Latin America, have announced today their expansion of operations to ...

Yvonne Kong - avatar Yvonne Kong

How medical professionals can benefit from an overall wealth management solution

As a health care professional, you have made it your life's work to focus on the care and health of the general public. While this kind of work can be extremely rewarding...

News Feature Team - avatar News Feature Team

Why Pinterest Should Be Part of Your Marketing Strategy

Pinterest is a growing social media platform that can deliver significant traffic to your website and new followers to your brand. With it’s steady growth and outrageous ...

Greg Nunan - avatar Greg Nunan

The top reasons why gyms fail

Steve Grant is a Business Coach and Founder of GymHub.com.au   Every month thousands of new trainers walk out of their 6-month course with the qualifications needed ...

Steve Grant - avatar Steve Grant

WHITE LABEL NOBA’s Winter 2016 season: Earth + Country

Taking cues from the warm winter colours of tobacco and caramel, and combining them with the strength of navy and the embracing lightness of whites and creams; and then...

Kath Rose - avatar Kath Rose

Former Etihad boss brings substantial event insight to PMY Group Board

Paul Sergeant PMY Group, the architects of the digital insurgency occurring at major venues across Australia and New Zealand, are delighted to welcome 35 year even...

Annie Konieczny - avatar Annie Konieczny

More training for coffee making than property sales: REINSW

Sydney 9 May 2016. An overhaul of education and training standards for the real estate profession must take place to help prevent illegal activities, according to the Rea...

Helen Hull - avatar Helen Hull