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Work and Family Balance: An Economic View - WP 03/26

3 Family and employment trends

This section examines employment and family trends that include trends in the workforce and make-up of families. These trends provide a context for understanding which family-friendly policies might be appropriate in promoting work/family balance. It should be noted, however, that most literature on work/family balance policy simply proceeds from an examination of employment and family trends, similar to that shown here, to policy proposals without any framework for analysis—an approach that has served as the motivation for this paper.

An OECD (2001) survey of the major trends in employment and family across the OECD countries found that the numbers of couple families with three or more children are declining, while in some countries there has been an increase in the number of couple families with no children. There has also been an increase in the number of lone-parent families in nearly all countries.

In Europe and North America during the late 1990s, the employment rate for all mothers with children aged 6 or under ranged from 42% in Spain to 78% in Sweden. The rate for mothers with children aged 6 or under was often higher than the rate for all women aged 20-60. This result reflects that fact that women with small children are relatively young, and younger cohorts have higher employment rates (OECD 2001: Table 4.1).

The survey also found that the traditional single breadwinner family is in decline. The proportion of couple families of the “single breadwinner” type is falling, due to the increase in dual earner couples and couples with one full time worker and one part-time worker. The employment rates of lone-parents have remained relatively stable, with over one half of all lone-parents with a child under 6 in paid employment in 1999.

The 1995 Australian Workplace Industrial Relations Survey considered recent workplace trends in Australia, with a focus on changes to work hours and work intensification (Morehead, Steele, Alexander, Stephen and Duffin 1997). One quarter of all employees participating in the survey reported that their weekly working hours had increased over the year prior to the survey. Those most likely to report an increase were managers, professionals, employees in the highest income quartile and workers in the education industry. Employees most likely to report a decrease in hours were part-time workers, casual workers and those employed as sales or personal service workers.

By combining results about changes in employee stress levels, job effort and work pace, Morehead et al created an index of work intensification. A high score on the work intensification index was associated with decreases in job satisfaction. More than a quarter (28%) of employees had a high score on the index, 24% had a moderate score while 49% had a low score or no score on the index.

The 2000 Work-Life Balance Baseline Study examined work/family balance trends in Great Britain, and in particular working hours trends (Hogarth, Hasluck, Pierre, Winterbotham and Vivian 2001). The study found that most employees worked outside the “standard working week”. Working extra hours was common across all employees, and particularly common amongst professionals and managers (who rarely received payment or time in lieu for these additional hours). Thirty nine percent of workplaces covering 40% of employees operated on the “standard working week”, while 11% of workplaces covering roughly 19% of employees operated 24 hours a day, seven days a week. Fifteen percent of employees reported working on Sundays while one in eight worked both days of the weekend. Men averaged 44.8 hours of work per week, women averaged 34.1 hours, while 11% of employees worked 60 or more hours per week. Those full-time workers who worked in excess of their contracted hours worked an extra 9.6 hours on average. Long hours were prevalent among men in couple households with children, at around 14%.

The employment and household trends and statistics for New Zealand are not significantly different from those of Australia, the US and Europe. In line with international trends, the traditional two-parent male breadwinner family structure is on the decline in New Zealand. While the majority of children (69% in 2001) in New Zealand continue to live in two parent families, this number is also declining (down from 74% in 1991). The percentage of families with children that were lone parent families increased from 26% to 31% between 1991 and 2001. Women made up 84.8% of lone-parents in 1996, which changed little over the preceding decade. Parents in de facto relationships are also becoming more common (increasing from 9.3% to 13.5% between 1991 and 2001 increasing from 9.3% to 13.5% between 1991 and 1996).

Mothers are becoming more involved in the paid workforce. It is becoming more common than twenty or even ten years ago for both parents in two parent families to be employed. However, this increase appears to be due in part to the increase of part-time work, with the number of children in two parent families with both parents working full-time remaining relatively constant at around 25% over the decade 1986 through 1996. In 2001, 36% of women in paid employment worked part-time compared with 12% of men. Sixty one percent of employed women with children under one year of age worked part-time, while only 32.9% of employed women with teenage children (13-17 years of age) are in part-time employment.

The Time Use Survey also provides some data on working hours and non-standard work hours (Statistics New Zealand and Ministry of Women's Affairs 2001). On average, more men than women work long work hours. Sixteen percent of men recorded labour force activity of 10 hours per day or more, compared with 5% for women. In terms of work at weekends and night, women and men share relatively similar statistics. Eighty six percent of female labour force activity is done on weekdays and 14% on weekends, while the figures for men were 87% on weekdays and 13% on weekends. Ten percent of women’s and 11% of men’s labour force activity is conducted between the hours of 8pm to 6am (ie, night work).

Department of Labour (2001) in Workforce 2010 documented the growth in non-standard work patterns and changing work hours. Over the last 15 years there has been a rise in non-standard employment and working hours. For men there has been a disproportionate increase in part-time employment, while women have experienced disproportionate growth in self-employment. There has also been an increase in the number of people working longer hours (50 hours or more per week) and the number of people working multiple jobs.

The typical hours of work are changing for both women and men. While the majority of workers still work the regular 40-hour week, there has been a shift away from this “standard” type of employment pattern, towards the extremities of the hours-per-week spectrum. This may reflect differing opportunities in paid employment and different worker preferences. Women tend to be over-represented in the 1-29 hours-per-week bracket while men are over-represented in the 50+ hours-per-week bracket. From 1987 to 2001 the number of employed women working 1-29 hours per week increased by 6%, while the number of working women working 30-49 hours decreased by 8%. For employed men, the number working 30-49 hours fell by 12%, while the percentage working 50+ hours increased to 31%.

Overall, the main New Zealand trends resemble those internationally. The family structure is changing with the traditional two-parent family becoming less and less common. The male breadwinner family structure is also on the decline as it becomes more likely that both parents are in paid employment. In line with this, female labour force participation rates are continually on the rise as are maternal employment rates. While men (and fathers) still receive higher earnings and retain higher labour force participation rates than women (and mothers), this gap is steadily closing. Working hours are also changing, with people in general working longer hours. The “standard working week” is less common than before with more people working either part-time or very long hours.

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