Economists and politicians often view the unemployed as statistics, or even more abstractly, as economic indicators. The reality of the hardship, heartbreak and struggle of older unemployed workers is recorded vividly and passionately in this timely study by Catherine Murphy.

The stories told by these people will serve to remind us of the huge personal burden still being carried by the unemployed as our economy undergoes the process of "restructuring". Amongst the hundreds of thousands of workers who remain unemployed in this country, no single group has been worse affected than those over the age of 45. The average length of time each older worker had been currently out of work is now well in excess of 18 months. Once unemployed, older workers find themselves with extremely limited job opportunities. They face rejection, humiliation and financial hardship at the time of life when they might reasonably have expected a degree of economic security and comfort. Ironically, it is also a time in their lives when, in so many ways, they potentially have most to offer to the rest of society. In reality, however, becoming unemployed over the age of 45 can effectively mean the premature end of one's working life.

The majority of those older workers in Australia who are unemployed have been forgotten and abandoned. By and large, the official statistics no longer record their existence. Official Australian Bureau of Statistics (ABS) figures suggest that for July 1989 the unemployment rate for men aged between 45-64 years was 4.7%. For women of the same age, the figure was 3.8%. These figures are considerably below the overall unemployment rates of 5.5% and 6.5% respectively. However, these figures certainly fail to measure the full extent of real unemployment affecting people in the 45-64 age group. A great deal of hidden unemployment exists amongst both men and workmen in this age range.

For older men, the most startling indicate of the extent of hidden unemployment lies in figures showing their changing labour market participation rates over the past 20 years. Prior to the early 1970's, the labour market participation rates for men over 45 had remained relatively constant. However, from 1972 to 1989 there occurred a very significant decline in the labour market participation rate of older male workers. In the age range 45-54, the participation rate dropped from 95.6% to 85.5%. For men between 55-59 years, it dropped from 90.6% to 74.5% and for those between 60-64 years, an extraordinary decline occurred from 76.5% to 46.2%. Overall, if the participation rates of men in these age groups had remained at the same level which existed in 1972 (and had been the norm prior to then), almost 290,000 extra workers would now be classified as unemployed.

A large percentage of these 290,000 men are effectively unemployed - though hidden in the official statistics. The unavailability of employment since the onset of the early 1970's is unquestionably the major reason for this dramatic change in the workforce participation patterns of older male workers. All small proportion have chosen early retirement with superannuation. Many others, however, have simply become discouraged jobseekers and fallen out of the labour market to become dependent upon either the support of their spouse or family or on some form of government welfare. Between 1975-86 the total number of men aged 55-64 in receipt of some form of government welfare support other than unemployment benefits increased from 76,900 to 187,000.

For older women, the true extent of hidden unemployment is even more difficult to estimate. In contrast to men, women's labour force participation rates started from a much lower base in the period prior to the economic downturn. Consequently, rather than declining, women's participation rates have actually been increasing as a result of the recession as more women have needed to attempt to find work. At the same time, however, hidden unemployment amongst older women has also increased. The ABS attempts to estimate hidden unemployment by providing data on numbers of discouraged jobseekers and those wanting to work but not counted officially as unemployed. In September 1988 there were 133,700 women in Australia aged 45-64 years without work who wanted to work but were not classified as unemployed. If these hidden unemployed were included in the labour force statistics, the real level of unemployment amongst women aged 46-64 years would have been over 19% in September 1988.

The publication of this graphic account of the hardship and anguish produced by unemployment should also serve as a timely reminder of the importance of re-instating full employment as a central goal of government economic policy.

Unfortunately, for most of the period since 1975, governments in Australia have effectively abandoned full employment as a central component of economic strategy. The conservative government led by Malcom Fraser (1975-83) pursued a restrictionist policy based upon the principle of "fighting inflation first". Unemployment was deliberately used as a weapon to discipline the workforce, restrain wages and facilitate the restoration of corporate profitability.

The Labor government elected in March 1983 came to office arguing that it was possible to fight inflation and unemployment simultaneously. At only level the government can justifiably claim some success in tackling unemployment since over one million new jobs have been created since 1983. However, this achievement falls far short of the goal of full employment. While the government's economic strategy has become increasingly conservative as time has passed, the essence of its failure to achieve full employment can be traces back to its initial reliance on "free market" economic assumptions.

Underlying this strategy was at least one critical similarity to Fraser's. Both relied heavily on the "trickle down" process which is so fundamental to the economic theories of conservative economists. While the Fraser government had preferred to rely on a market-led recovery, Labor aimed initially to stimulate growth in the economy though public-sector led expansion. It was assumed, however, that this public stimulus would in turn lead to private-sector expansion as a result of the restoration of profitability. With rising profits, regulated labour costs and increasing purchasing power in the economy, private business would increase investment which, in turn, would lead to expanded growth and employment industry. At this point, the government would stand aside to let the market distribute the benefits of the recovery in its own unique and "efficient" way. Thus , the recovery would trickle don to everyone - guided by the invisible hand of the "free market".

However, in spite of outstanding, but temporary, rated of growth in the economy in 1983/84, the economy did sustain the desired recovery. From the beginning of 1985, Australia was faced with a continually worsening decline in the terms of trade, increasing balance of payments problems, and a rapidly increasing national debt. In addition to these external problems was the internal problem of the failure of business to increase production investment within Australia in spite of the restoration of a quite healthy level of profitability. These profits instead went to finance stockmarket speculation, increased dividends to shareholders, increased executive salaries, increased investments off-shore, increased profit repatriation overseas and the activities of the big foreign exchange gamblers (particularly by our banks).

In response, the government has effectively abandoned its previous full employment goal. Instead it places priority on restricting any growth of demand in the economy in order to reduce the budget deficit. The government adopted the argument presented by business and the orthodox economists in favour of a more restrictive budgetary policy and increased deregulation. In doing so, it has been unduly influenced by the currently dominant "New Right economic ideology which stresses the virtues of "small government" and "budgetary restrictionism". Bluntly, this is a strategy which will benefit a few in the hope that their increased wealth will ultimately benefit us. That is, it again relies on faith in the effectiveness of a "free market" and the "trickle-down" process.

The result of policies which have attempted to increase reliance on the operation of markets has been the rapid growth of economic inequalities with Australian society. They have produced a large number of new millionaires but also greatly expanded the numbers living in poverty. They have also left specific vulnerable groups, such as women, migrants, and older workers, marginalised within the economy. The government has sought to alleviate the worst effects of these trends by pursuing targeted welfare and employment programmed aimed at the most disadvantaged groups. Such a strategy has certainly not effectively met the needs of the older unemployed worker whose stories are told here.

In order to overcome the inequalities existing within the labour market and to provide full employment for all, dramatic changes are required in the economy and in economic policies. Full employment can only be provided with significant government intervention. We must reject policies which are based upon increased reliance on the market to distribute resources. The market within a developed capitalist economy will inevitably distribute resources in a way which exacerbates inequalities. Australia faces structural economic problems and inequalities which can only be overcome by means of a highly interventionist industry programme which includes increased government planning, vastly expanded education, training and retraining provisions and government initiated investment programmes. A more expansionist, rather than restrictionist, budgetary policy is also required in order to promote growth, employment and economic redistribution in the economy.

The stories so powerfully recorded here by Catherine Murphy should make us very angry. They graphically illustrate how our existing economic system and policies have needlessly and arbitrarily devastated the lives of so many people. As a society, we simply cannot afford to senselessly waste the skills and talents of our most experiences women and men.

Ray Broomhill