8 - Labour, skills and migration

Summary

The 19th-century Australian labour market was defined more than anything else by the issue of labour scarcity. This chapter examines the implications of scarcity for the Australian labour market from the later years of the convict period through to Federation in 1901. It first focuses on free migration to the colonies. Despite relatively high wages, early 19th-century free migration remained relatively low, largely because of the cost of migration. Although migrants were increasingly attracted to Australia because of the gold rushes, the colonies nevertheless needed to implement extensive subsidies to attract suitable immigrants. Next, the chapter explains wages and skills. Although the majority of Australian workers had little employment security, a sizable minority, particularly in the tertiary sector, worked for employers with well-developed internal labour markets. Finally, the chapter explains labour market regulation and union activity. Unions were relatively small and inactive until the passage of legislation protecting their strike funds in the 1870s and 1880s.