Casual Employment in Australia: Growth, Characteristics, a Bridge or a Trap?

Abstract

About one in every four Australian employees is a casual. The casual share has doubled over the past decade and continues to expand. This paper catalogues the growth of casual employment and discusses the characteristics of casual jobs and of those in casual jobs. The key analytical issue discussed is whether casual employment is a transitional employment arrangement on the road towards permanent employment conditions. Alternatively, is it a trap which is associated with job insecurity, low earnings and spells outside of employment? Although the evidence is partial and circumstantial, casual employment is a bridge for some and a trap for others. In particular, for those who wish to beak out of unemployment, casual employment is unlikely to be a transitional point on the road to a permanent job. This finding has important implications for the design of labour market programs.