A proposal for unemployment insurance

The problems of entrenched high unemployment in Australia, and the need to improve the support given to people who are affected by unemployment, require new thinking and new ideas in order to bring about policy change. Therefore, Jobs Australia commissioned this research paper to ask Professor Andrew Scott to elaborate on his analysis of the possible relevance to Australia of the Danish approach to employment security which he expounded in his 2014 book, Northern Lights. In particular, we asked Professor Scott to outline practical steps which Australia might consider taking which are feasible and realistic: cutting ‘with the grain’ of Australia’s own distinctive institutional and policy approaches in order to shape new, better-designed policies which might reduce the poverty and uncertainty now faced by so many people in this country. It is very important that Australia now learn from overseas, and not only look at English-speaking countries in which, after all, in many cases, the problems are worse than ours in terms of higher inequalities and larger numbers of long-term unemployed. It is appropriate, in a true spirit of embracing globalisation, to look at the best performing nations in terms of tackling unemployment, and what may possibly be learned from them to apply in the challenges we face here in Australia. Jobs Australia is the national peak body representing not-for-profit organisations that help disadvantaged people find work. We are the largest network of employment and related service providers in Australia and we are funded and owned by our members. I am pleased to endorse the thrust of the arguments put forward in this paper and for Jobs Australia to publish it in this format in order to open up debate and to seek more engagement from key policy-makers with the ideas presented here.