New report reveals energy poverty reduces positive employment outcomes for jobseekers
Jobseekers facing energy poverty are much more likely to struggle to find work, according to a new study from the James Cook University (JCU).
The study, which analysed the Hilda survey of Australian households, discovered that unemployed people experiencing energy poverty take longer to find a job, if at all, despite spending more hours job searching.
"We find that energy poverty increases job search intensity, increases time-to-employment, reduces time-in-employment in the first twelve months following the identification of energy poverty and reduces the likelihood to be employed twelve months after the identification of energy poverty," the study read.
The study noted that obstacles associated with energy poverty may weaken a jobseeker's focus on the job search process. Overcoming the obstacles may also compete with time dedicated to the job search, according to the study.
Unlikely factors for job outcomes
It pointed out, however, that there may be other potential explanations for the situation as energy-poor unemployed workers may also have higher reservation wages and are more selective.
"Research looking at financial hardship more broadly does not find evidence to support this," the study read.
Another potential factor is discrimination from employers.
"We cannot test the discrimination thesis, but consider it unlikely, because energy poverty is not an observable characteristic of an applicant," it noted.
Addressing the chicken-and-egg situation
JCU Professor Riccardo Welters, author of the report, described the findings as a "chicken and egg" situation.
"If you've got energy poverty and you're unemployed, that reduces your likelihood of finding employment, which is probably the way out of energy poverty," Welters said in a statement.
Solving the problem should include policy interventions that can help affected unemployed individuals, according to the study.
"Improving Australia's housing estate, so houses are more energy efficient, could be a potential solution. Home ownership also matters, but that can be far out of reach for many unemployed," Welters said.
"Government policy might be able to do something about a person's social capital... by helping the unemployed identify a cheaper energy supplier or assisting in identifying home improvements."
