Sleight of Hand: Job Myths, Literacy and Social Capital. CRLRA Discussion Paper.

The relationships existing among human capital theory, Australian public policy, literacy education, and the plight of Australia's long-term unemployed were examined. The following topics were considered: human capital theory-based public policies and literacy education; social capital and learning; building and using social capital; the "social justice" and "social coalition" approaches to policy; and the notion of "mutual obligation" in social welfare policies. Next, a case study of the effects of policy changes on the long-term unemployed was discussed. The findings of the study, which involved interviews with 23 people (including 15 long-term unemployed individuals who had been or were currently enrolled in adult literacy courses) were shown to support the following conclusions: (1) to be successful, welfare policy related to unemployed persons must address both human and social capital elements; (2) although the skills associated with human capital are important in accessing and controlling the kinds of social factors that come with globalization, they are not enough to prepare individuals to cope with the knowledge explosion accompanying globalization; and (3) adults requiring the "second chance" learning provided in adult literacy and communication education need help in developing the networks, social norms, and trust that is included in the concept of building social capital. (Contains 29 references.) (MN)