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Changes in internal and external labor markets through externalization of the workforce or the development of contingent and core distinctions have been intensified in Australia by globalization, competitive pressures and political changes. An extensive literature describes and analyzes these changes and empirically assessed variables influencing the extent of externalization and the strategies associated with it. Very little attention has been given to the implications of these changes for human resource management. This article reviews some reasons for the high rate of externalization in Australia and identifies some issues which face human resource management as externalization continues to rise.
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