What does the move to workforce casualisation mean for the future and economy?

Australia is a pretty casual society when it comes right down to it; and the closer you get to the Coast and those beautiful beaches we Aussies adore, the more casual the vibe is. Which is awesome, unless you are trying to find work or have fallen into the uncertain lifestyle and irregular income that is an ever-increasing casualised workforce – or as the optimists and spin merchants like to say, “the gig economy”.

The precariousness of earning an income in the most casualised of sectors – retail and hospitality – has never been more apparent than during the COVID-19 pandemic when these were the first cohort to lose their jobs and income.

Before the pandemic, many of these employees enjoyed no sick leave, personal leave, holiday leave. They must make a minimum of $450/month to be entitled to Superannuation. In Australia, unless they fit the criteria of long-term casuals, the are not entitled to JobKeeper payments.

Some are currently enjoying the safety net of JobSeeker payments but this shrinks in September.

Even the most stubbornly optimistic are struggling to confidently predict our economy will bounce back before then

Perhaps driven by the negative connotations conjured by the term “casual employee”, there have been increasing moves to casualise the workforce under different names – contractors, consultants, associates, freelancers, sole traders, labour hire.

And it is being sold by some as the dream, workplace flexibility which allows them to balance work with their life and study.

But the reality is, it is much less than a dream for many.

Being a part of the gig economy means not knowing how much money you will earn month to month. It means having to do your own business development and not having regular, paid holidays. It means falling sick can be catastrophic to an individual’s income any given week or month.

As a casual employee with no steady roster, how do you organise child care, or do you end up paying for care you don’t always need and risk having no care when you do?

Those in casual employment don’t need to be given notice if their employer no longer needs their services; they just stop being rostered on.

Being a casual or consultant or freelancer means getting finance for a home, or renovation or new car or business loan is close to impossible making planning for the future problematic.

Casualisation of the workforce does make sense for business to some degree, reducing the overhead, costs and obligations employers have historically been subject to. It helps keep them lean and agile.

In this era of uncertainty, businesses will inevitably work towards continued casualisation of its workforce.

But they risk doing so at the cost of employee loyalty and workforce stability and, as COVID-19 data may indicate, the greater community with casuals well aware calling in sick may well mean the loss of their job. It is a risk some are not prepared to take with some suggestions this has been a contributor to the spread of the virus.

I know a number of professionals currently considering low paying, but permanent, gigs just so they can shore up some certainty for their immediate future.

I’m one of them. As an older professional, job and income security means far more to me than a higher hourly rate. My fiancé and I want to plan our wedding but with uncertain income, are reticent to do so.

I can’t help but wonder what this casualisation of the workforce will mean for the future. How will the next generation secure funding for their first home or business enterprise? How will talent be developed and fostered within organisations? What are the legacy implications of a casual workforce on a business?

It will be interesting to see. I am hoping for a shift back to a market where securing talent, growing it and affording employees security is realised, but I suspect I am showing my age and that is a relic of a bygone era.

Leave a comment