Reorientation of trade, investment, and migration

Introduction This chapter will bring together some of the key geographic shifts in Australia's international economic relations in the second half of the 20th century, particularly the refocusing of investment, trade and migration towards East Asia. After describing the major elements of Australia's changing international economic relations, the chapter will examine the main explanatory factors and analyse the consequences of the shifts, which have primarily been increased material prosperity for most of Australia's population, a greater openness of the economy and society, and the adoption of multiculturalism. Patterns In 1950 farmers and graziers supplied 86 per cent of Australia's exports; by the 1990s that share had fallen below 25 per cent. Meanwhile, the share of fuels, minerals and metals, 6 per cent in 1950, rose to more than 40 per cent and the share of services increased from 5 per cent to 20 per cent. The change in structure was accompanied by an equally dramatic change in the direction of exports: the share of Europe (primarily the United Kingdom) dropped from 63 per cent to 16 per cent while that of East Asia increased from 14 per cent to 56 per cent (Anderson 1995, p. 33). These dramatic changes, which have continued into the 21st century, required a rethinking of Australian policy towards trade, investment and immigration, as well as reassessment of the nature of Australian society, with its European heritage and Pacific location.Richard Pomfre

The labour market

Introduction This chapter focuses on four key aspects of the development of the Australian labour market since Federation. First are the patterns in the total labour supply as influenced by population increase, participation, hours of work and trends in labour-force composition. Second is the growth in workforce skills, as represented by the changing role and place of education, including vocational training. Third is the evolution of Australia's distinctive pattern of industrial relations, including the structure of wages. Fourth are the trends and fluctuations in average wages and unemployment. Labour supply and population At the aggregate level, the 20th-century labour market is a story of the size and structure of the population driving the scale of the labour force available for the Australian economy. The basic drivers are those of population growth through migration and natural increase, and of workforce participation, including changes in female participation and youth and older worker engagement