Barriers to Access Consumer Finance and the Influence of Workforce Insecurity

Abstract

Workforce insecurity and the increasing importance of insecure work in developed countries such as Australia, Canada and the US are posing important economic and societal challenges which if not adequately addressed could have long-term negative generational effects not easily rectified. One such challenge comprises the potential interaction between workforce insecurity and personal financial capability and their consequent impact on access to consumer finance. Building on prior research this article integrates both attitudinal and behavioural variables using a cross-sectional nationally representative survey of 1104 Australian adults. The findings demonstrate the influence of personal financial capability on workforce insecurity, financial distress and the ability to access consumer finance. The implications for both government and business suggest that new mechanisms may be required to minimise the financial market distortions created by the expansion of workforce insecurity.