Stressed-out Aussies unlikely to receive pay rise

When it comes to working, three in five Australians have told LinkedIn’s final Workforce Confidence Index for 2020 that they are “very or somewhat stressed”, with one in five saying they are spending their off time checking in with work.

Millennials felt the most stressed of any age group, while Baby Boomers were most relaxed.

However, overall, Aussies are refusing to take time off work, with nearly one in two taking less holidays, which LinkedIn suggests could be adding to their stress levels.

This is particularly affecting younger Australians who are spending more time checking on work during their down time.

Stressed-out Aussies unlikely to receive pay rise

The LinkedIn report also found that despite 90,000 people returning to the workforce in November, four in five Australians are still stressed out about their jobseeking prospects.

The ABS recently showed that job creation was mostly in full-time work, which rose by 84,200. On the other hand, part-time jobs increased by only 5,800 in the month.

Underemployment fell 1 per cent in the month, to sit at 9.4 per cent, down from a peak of 13.8 per cent in April.

Long way to go to recovery

But, according to research, these improvements in unemployment are unlikely to see Australia’s unemployment rate rebound to pre-pandemic levels for another four years.

During his Mid-Year Economic and Fiscal Outlook, Mr Frydenberg noted that unemployment took six years to recover from the crash in the 1980s and 10 years for the 1990s recession.

And besides the long road to recovery, young people are expected to bear the worst of the unemployment challenges, particularly those in industries and areas most affected by the shutdowns.

Employment for 15 to 34-year-olds is currently 3.1 per cent below its March level, while employment for people aged 35 and over has now surpassed pre-COVID levels.

Despite the additional stress being felt by Australians, the RBA has shown that wages growth is unlikely.

The RBA stated the wage price index slowed to 0.1 per cent in the September quarter, to be just 1.4 per cent year-on-year – the slowest wages growth in the two-decade history of the series.

“The lower average wage outcomes of the past few years have reflected the increased prevalence of wages growth in the 2s across the economy,” RBA deputy governor Guy Debelle previously said.

The RBA maintains that addressing the high rate of unemployment is an important national priority.

Despite the positive numbers, 942,100 Australians remained jobless last month, just below the record high of 1 million people in July.

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About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

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