Workers bounce back, but not very high

A new report from the OECD finds Australian workers laid off due to company closure can usually find work, but it's often less than what they're after.

AAP Source: AAP

Australian workers laid off from a business closure are reasonably successful in finding work again, but the replacement job is not usually what they're after.

Even though a large majority is able to find replacement employment quickly, a significant minority lose out in terms of job quality, a new OECD report has found.

Each year, on average 2.3 per cent of workers with at least one year under their belt lose their jobs for economic reasons, such as corporate downsizing or firm closure.

The Back to Work: Australia report, released on Thursday, says it is a high proportion relative to comparable countries.

But on average almost 70 per cent were re-employed within one year and just below 80 per cent within two.

However the downside is many have to switch from permanent to casual work and others end up with a part-time job.

To help prevent excessive layoffs and improve support for laid-off workers the OECD recommends governments move away from sector specific special assistance programs.

It also calls for employers to give longer notice periods for collective dismissals, with notifying Centrelink mandatory so authorities can react sooner.

"Notice periods for dismissals affecting 15 or more employees are short by international standards and in most cases the public authorities are notified after retrenchments have already occurred," it said.

Other ideas include:

* Support for firms that put workers on short hours due to temporary downturns.

* Improved co-ordination between federal and state government interventions.

* More economic forecasting and risk analysis at the regional level, to help ensure a more effective use of investment to support the local economy in advance of closures.

Employers should also be obligated to keep training records so employees can have proof of on-the-job learning.

The report says unemployment services in Australia predominantly serve the long-term unemployed, rather than those who had stable jobs before being laid off.

Nevertheless, they require help because they have not applied for work in a long time.