The people losing their jobs in manufacturing across Australia have already done their learning - there's just not enough factories or plants for them to earn, writes Paul Bastian.

"Learn or earn" sounds great in theory.

We all want workers of all ages to get the skills needed for a useful career. Of course, we want everyone who can work to be in employment and not reliant on the welfare system.

But to date the focus has been entirely on the dichotomy of either learning or being on welfare.

Yesterday morning on ABC Radio, Minister for Social Services Kevin Andrews defended cuts to youth welfare by arguing that young people should be learning in either the trades or higher education.

But the Government needs more focus on the 'earning' side of the equation - a side that is increasingly becoming a black hole.

Where are the jobs that allow us to 'earn'?

Over the past year there has been a systematic and devastating loss of jobs that were once the hallmark of the Australian middle class.

These were solid, dependable manufacturing jobs; decent jobs earning the average wage; jobs that supported communities and families.

It is not a coincidence that areas of rising welfare dependence correlate with areas that are losing their manufacturing and industrial base - Western Sydney, outer Brisbane, Geelong, Kwinana in Perth.

These people are not unskilled - they have done their learning. But there's nowhere for them to earn.

Tony Abbott and his Government, if wedded to the concept of "learn or earn", need to more carefully examine this erosion of the ability to earn.

In just the past year, we have seen an additional 51,481 people join the Newstart Allowance queue. They want to earn. But where do they go?

We have seen the ongoing shutdown of manufacturing jobs - 45,000 direct jobs to go in auto-manufacturing, 500 lost at Electrolux in Orange, shipbuilders in the Hunter starting to lay off skilled tradespeople, DSI in Albury moving from 1000 jobs down to 160 and now about to close.

480 workers are about to lose their jobs at Aurizon railyards in south-west Brisbane and Townsville. The BP refinery at Bulwer Island out of Brisbane is shutting, with the loss of 355 jobs.

On Friday, Custom Coaches in Western Sydney announced voluntary administration, the loss of a further 130 jobs.

It keeps adding up.

All these numbers represent skilled workers. They have already learnt. But nothing is being done to save their jobs, and save an entire sector of the Australian economy.

Under the Government's policies, the jobs that young trades people would have gone into no longer exist.

It would be easy to assume that the government - federal or state - has no role to play in this sector of the economy. That nothing can be done. But international experience shows this is not the case.

In the United States, proactive domestic procurement policies helped to save a huge sector of their industrial and manufacturing base. "Rescuing the middle class" was how it was termed - and was partially credited with winning Obama his second term. Both major Australian parties would do well to take note.

The same is true across Europe and much of Asia.

By introducing a 'local first' procurement policy, our Federal Government could save many of these jobs and industries. Tony Abbott could live up to his promise to be a 'jobs Prime Minister'.

He could be the Prime Minister of a Country that Makes Things.

He could see Australia keep building ships, trains and engines that would service our national needs. He could ensure that when young people finish learning, there is somewhere for them to go and earn.

He could support innovation, support companies that buy local, enforce domestic defence procurement. All of these actions would support industry and jobs.

But unless he acts soon, nothing will be left to make, and the unemployment figures will continue to rise.

Paul Bastian is the national secretary of the Australian Manufacturing Workers Union. View his full profile here.