It’s entry AND exit

06/12/2013 § 3 Comments

Oh, fer the love of Mike.

Thousands lose jobs under the new-ish 90-day trial rule. Sure, and yes. That was always going to happen. As the Minister points out, however, thousands more were hired under the trial period rule, and around a third of those hires depended on the trial period. So, let’s do the math from the Dom Post:

Hired: 69,000 in trial period in 2012, of which possibly 1/3 depended on the trial period = 23,000

Fired: 18,000

Net: 5,000 in 2012.

The point of this sort of legislation is to overcome a lemons problem. Employers don’t know the quality of employees until they try them out. A bad hire — one that doesn’t fit — can wreck a small business. That makes employers averse to hiring — better to muddle through. If they know they can reverse a bad decision fairly costlessly, they are more likely to give someone a go.

That will mean more hires. It will also mean more firings.

So, who is going to tell those 5,000 people (or whatever the number is) that they can’t have jobs because someone else has been ‘unreliable or had a bad attitude’.

And just by the way, I can’t believe that this work from 3 years ago is the only econometric analysis of the law. Hasn’t someone else done something better?

§ 3 Responses to It’s entry AND exit

  • Donal Curtin says:

    Well done Bill. I was tempted to give the Dom’s coverage a serve (including its emotive huge picture of a manic employer casting an employee into the dark) but you said everything that needed to be said

  • […] We have been here before. DoL/MBIE has already released a report on the 90-day trial period that did not actually answer the central question. And it led 6 months ago to the same wailing and gnashing of teeth — which I discussed at the time. […]

  • Their team will begin spending so much time for you personally right
    after getting all of your personal information and knowing about your expectations.

    An international recruiting company needs a little extra insights to cope with international recruitments
    effectively. Since that time, SBI may be very active and may be becoming a custodian of people’s money in the form of various bank accounts.

What’s this?

You are currently reading It’s entry AND exit at Groping towards Bethlehem.


%d bloggers like this: