Labour Market Adjustment, Knowledge Economies and the Patchwork Nation

Professor Andrew BeerCentre for Housing, Urban and Regional Planning

University of Adelaide2 December 2011 

The Patchwork Economy?

• Dutch Disease– De-industrialisation – Processes of adjustment

• Efficient, effective • What role the knowledge economy?

• Are there other pathways?

The Illawarra

The South Australian Case 

• South Australia as a ‘traded goods’ state – Manufacturing – Agriculture – Mineral products 

• Impacts of restructuring – MMAL in Southern Adelaide – Loxton Waikerie 

Average Wage and Salary Earnings, 2003-04 to 2008-09, 

SA, Loxton Waikerie and Onkaparinga 

2003-04 2004-05 2005-06 2006-07 2007-08 2008-09Average Wage & Salary Income ($)

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

South AustraliaLoxton Waikerie (DC)Onkaparinga (C)

Average Unincorporated Business Earnings, 2003-04 to 2008-09, SA, Loxton Waikerie and Onkaparinga 

2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 -   

 20,000 

 40,000 

 60,000 

 80,000 

 100,000 

 120,000 

 140,000 

 160,000 

 180,000 

South AustraliaLoxton Waikerie (DC)Onkaparinga (C)

Average Earnings from All Sources, 2003-04 to 2008-09, SA, Loxton Waikerie and Onkaparinga 

2003-04 2004-05 2005-06 2006-07 2007-08 2008-090

10000

20000

30000

40000

50000

60000

Loxton WaikerieOnkaparinga South Australia 

 Auto Restructuring in Two Cities: Birmingham and Adelaide 

• MMAL Lonsdale April 2004, MG Rover May 2005• Adelaide 

– Structural Adjustment Fund for SA (SAFSA)– Redundancy payments from MMAL – Worker assistance via JobsNetwork 

• Birmingham – Minimal redundancy payments – Range of government actions via MG Rover Taskforce  & Advantage West Midlands 

Outcomes 

Site of MG Rover, mid 2008

AusComposites

Redarc Electronics

Alloy Technologies

Cubic Pacific

Ingham's Enterprises

Fibrelogic Pty LtdResource Co.

PBR Australia

ScreenCheck Aust.

True Life Creations

Origin Energy Solar Pty Ltd

Jumbo Vision InternationalIntercast & Forge

Inpak Foods

Seeley International

BD Farms Paris Creek

Normanville Export Meatworks

Peats Soil & Garden Supp.(Willunga)

Peats Soil and Garden Supp.(Dublin)

GulfSt. Vincent

GulfSt. Vincent

0 5 10 Km

"

500,000

1,000,000

2,000,000

4,000,000

6,000,000

Dollars (AU)

Suburb

0 50 Km

SAGE Group Holdings

Industry of Most Recent Employment, Wave 2 

0

5

10

15

20

25

30

35

40

Agriculture

Mining

Manufacturing

Electricity and

Water S

upply

Construction

Wholesale and

Retail Trade

Accom

modation,

Cafes &

Rest

Transport andS

torage

Construction

Finance andInsurance

Governm

ent Adm

in&

Defence

Health, E

d. &C

omm

unityS

ervices

Personal S

ervices

®

Datum: GDA94Projection: Lambert Conformal ConicData Source: School of Geography, Flinders University 2007.Australian Bureau of Statistics 2007.

Created by Nicole MahoneyDate: 26th July 2007.

0 4 8 12 162Kilometres

Legend

Number of Workers1

2.5

5

7.5

10

25

50

75

Local Government Area

Lonsdale

Dealing with Labour Market Immobility: West Midlands 

Riverland Futures Taskforce

• Riverland Futures Taskforce – $20m structural adjustment fund established by SA Government  (Riverland  Sustainable Futures Fund)

• Now administered through RDA Committee – Limited take up, slow take up 

• What subsidiarity?• And does it address the region’s fundamental needs in an era of capital mobility?

Other Pathways? 

• Costs of structural adjustment for individuals and communities

• Mining boom – Displaced tourism, manufacturing, some services – Social costs for FIFO workers and their communities

– Not been accompanied by a substantial investment in the generation of a knowledge economy 

Other Pathways?Tampere, Finland