Unveiling the Hidden Workers in Australia: Who Are the Hidden Workers and What Makes Them Hidden?

Abstract

The pattern of labour underutilisation is complex and multifaceted, but research has been focused on unemployment. To explore socio-economic demographics of other forms of labour underutilisation, this study investigates the concept of ‘hidden workers’ using the latest data from the Household, Income and Labour Dynamics in Australia (HILDA) study. Hidden workers are composed of three categories, namely those who are unemployed but actively seeking employment; working part-time but willing and able to work full-time; and not working but are willing and able to work under the right conditions. Analysis of HILDA data from 2022 reveals (i) a significant discrepancy in the incidence of unemployed and hidden workers across various socio-economic factors, and (ii) a pronounced age and gender differences among hidden workers, which is not easily discernible from standard unemployment descriptive statistics. Effective labour market policy depends on accurately identifying the different types of hidden workers and their social determinants. This study offers valuable insights to support more inclusive policies for hidden workers, who are often overlooked.