Did labour market programs reduce employment in Australia’s regions?

Typically, it is argued that regional unemployment throughout Australia has increased since the 1970s due to structural adjustment. The data examined in this study suggests that, while labour markets in regional Australia deteriorated during the 1970s and 1980s, throughout the 1990s there was a turnaround. The turnaround occurred during a two-year period from 1993 to 1995, a period which corresponds with the deployment of labour market programs throughout regional Australia. These programs were comprehensive in both design and coverage. The possibility exists that the turnaround in regional labour market performance may be linked to these labour market programs.