Job creation and job destruction in manufacturing industry in Australia

Abstract

This paper studies properties of employment flows between disaggregated sectors of manufacturing industry in Australia for 1978-79 to 1991-92. Measures of job creation, job destruction and employment reallocation are calculated and the magnitude, correlation and cyclicality of these measures of employment flows are examined. An analysis of the sources of aggregate employment reallocation considers the effects of inter- and intra-sectoral employment flows, and of aggregate and sectoral-level factors. The consequences of employment reallocation for unemployment outcomes in Australia are also examined.