Labour Market Gross Flows and Transition Rates 1980–1992

This paper examines the cyclical properties of gross flows and transition rates between the alternative labour market states of ‘employed’, ‘unemployed’, and ‘not in labour force’ for Australian workers for the period 1980–1992. The study is based on ABS monthly gross flow data, disaggregated by gender, and with the employment status disaggregated into part-time and full-time work. The principal finding is that the somewhat surprising pattern, of counter-cyclical monthly flows from unemployment to employment, is primarily the result of counter-cyclical male transitions to full time employment. The results are compared with those from European empirical studies. The paper also considers the consistency of the results with thé implications of theoretical models which emphasise the counter-cyclical ‘quality’ of the unemployment pool.