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| Number of Dependants |
Unemployment Rate % |
|---|---|
| 0 |
3.4 |
| 1 |
4.3 |
| 2 |
4.2 |
| 3 |
4.5 |
| 4+ |
8.0 |
It should be noted that while the high unemployment rates for single parent and large couple families are related to socio-economic disadvantage, they may also be due in part to work disincentives contained in the social security and income tax systems. That is, the payment of sole parent pension and family income assistance may decrease the incentive to work by providing an income unrelated to work and by raising effective tax rates through the phase-out provisions of income assistance. The additional cost of working, in particular child care and travel to and from work, may also act to reduce the incentive to leave income support for work.
Children in Unemployed Parent Families
Almost 700 000 children under the age of 15, are currently (August 1997) living in families where no parent has a job. Just over 200 000 of these children are living in unemployed parent families-families in which neither parent has a job and at least one parent is actively seeking a job. It is a concern that although the number of children has increased by just 7 per cent over the past 13 years, the number of children living in unemployed parent families has increased at more than double this rate at almost 16 per cent. This increase has occurred, despite the fact that the overall unemployment rate is about the same now as it was 13 years ago.
Single Parent Families
The increase in children living in unemployed parent families can be traced to two influences. The first is the dramatic rise in the number of single parent families while the second is the increase in the unemployment rate for these families. Between 1984 and 1997, the number of single parent families (with children under 15) rose from 270 000 to 437 000 while the unemployment rate for these families rose from 14.7 to 16.9 per cent. The combined effect of these influences was a rise of 148 per cent in the number of children living in single parent families where the parent is unemployed. By comparison, the number of couple families with children under 15 years rose only slightly over the period, with a drop in their unemployment rate from 4.7 to 4.4 per cent. Consequently, the number of children living in unemployed couple families actually fell over the 13 year period.
Hence, compared with 1984 there has been a rise in the number of children living in an unemployed family situation. This increase is entirely attributed to the increase in children living in unemployed single parent families.
Unemployment Rates of Wives
The likelihood of a wife being unemployed is strongly associated with the employment status of her husband. In 1997, for example, the unemployment rate for wives with an unemployed husband was 36 per cent, or almost ten times greater than the unemployment rate for wives with an employed husband. High as this figure is however, it is much lower than the corresponding figure 13 years ago when the rate was 47 per cent-reflecting the increase in employment opportunities for women. Nonetheless, these figures are a cause for concern as they show that labour market disadvantage tends to concentrate in certain households.
