Earn
Unemployment is not telling the entire story
An unemployment rate of 6.2 per cent for April wasn’t the wipe-out some economists predicted, but the number in itself is only telling part of the story.
Unemployment is not telling the entire story
An unemployment rate of 6.2 per cent for April wasn’t the wipe-out some economists predicted, but the number in itself is only telling part of the story.
The Australian Bureau of Statistics’ (ABS) April unemployment figures show that unemployment rose by 104,500 to 823,000 – 6.2 per cent. That’s far below some predictions of a rise in unemployment to more than 8 per cent.
“The large drop in employment did not translate into a similar-sized rise in the number of unemployed people because around 489,800 people left the labour force,” said Bjorn Jarvis, head of labour statistics at the ABS.
Opposition Leader Anthony Albanese pointed out that the number, while smaller than expected, has still left half a million Australians who have been negatively impacted due to the pandemic.
“That is a devastating figure,” Mr Albanese said. “They are all people with families, with a need to put food on the table for their family and their kids. They are people who are our friends, our relatives, our neighbours, people in our community.”
However, unemployment isn’t the full story. Around 2.7 million people (one in five employed in March) either left employment or had their hours reduced between March and April – a figure the ABS notes “was much greater than in previous years”.
“As a result, the number of underemployed people also rose sharply (up 603,300 to a total of 1.8 million people), and the underemployment rate rose to a record-high 13.7 per cent (up 4.9 percentage points),” the ABS said in a release.
Underutilisation – which combines the underemployment and unemployment rates – also rose to a record high of 19.9 per cent.
Government stimulus from JobKeeper and JobSeeker payments may also be dampening statistics on the “true” number of unemployed, with more than 6 million Australians now receiving the JobKeeper payment, according to the Treasurer.
“Many Australians out of work will still be counted as ‘employed’ because they will receive JobKeeper payments via their employers,” the Grattan Institute said in a report. “Others that would have lost their jobs will remain employed. And others will leave the labour force entirely and so won’t be counted among the unemployed either.
“Nonetheless, we expect the unemployment rate could rise to between 10 and 15 per cent.”
But Roy Morgan estimates that unemployment may already be as high as 15 per cent – well beyond the Treasury estimate of 10 per cent – and that a “V-shaped” recovery is unlikely.
“The changed economic and employment landscape will start to normalise. But with a much larger pool of unemployed and underutilised workers, there will be a far more competitive jobs market for employers to pick from,” Roy Morgan CEO Michele Levine said.
“There will be no ‘snapback’, which means all, or even most, newly unemployed Australians are back in their original jobs in the next few months.”
The government is now facing questions around how it will phase out the JobKeeper and JobSeeker payments while many Australians are still struggling to get back on their feet – but Treasurer Frydenberg refused to budge on the matter of a permanent increase to the Newstart Allowance.
“We’ve been very clear that the measures we’ve announced are temporary – they’re targeted, they’re proportionate, and they use existing systems,” Treasurer Frydenberg told the National Press Club. “These were the principles we adopted.”
About the author
About the author
Salary
Why a salary bump is not a now-or-never scenario
After a decade of low inflation and low wage growth, the bargaining power workers have to negotiate better conditions are starting to grow, but whether or not it leads to stronger wages remains to be ...Read more
Salary
Treasurer to reassess COVID payments as 1m Aussies are locked out, but JobKeeper is ruled out
With over 1 million Australians currently in lockdown without additional support, the Treasurer has conceded he will assess the current payment packages, but has blatantly refused to yield to pressur...Read more
Salary
Apply to me directly: ANZ boss
Following a call to get older Aussies back into the workforce, ANZ boss has gone a step further telling potential workers they should apply directly to him. ...Read more
Salary
Qantas workers warned of stand-downs as unions rehash calls for ‘Aviation Keeper'
Workers at the national airline have been warned that the COVID-19 border closures could mean the airline will stand down employees again, as the unions call for government support. ...Read more
Salary
Struggling to find staff? Your inaction on social issues could be to blame
Australian employees are increasingly likely to call it quits with a company that has a poor record on social issues or mental health, new research has shown. ...Read more
Salary
Job losses rise as $155m in disaster payments is deposited into accounts
Australia’s decade-low unemployment rate is set to spike just as the country’s efforts were being celebrated, with key stakeholders questioning whether current government support goes far enough i...Read more
Salary
Time to get older Aussies back in the workforce: ANZ
A big four bank CEO is encouraging older Australians to return to the workforce, as the country continues to battle skill shortages led by the closure of international borders. ...Read more
Salary
Unemployment falls to decade low
Australia’s unemployment rate has fallen below 5 per cent for the first time in over a decade, official figures have revealed. ...Read more
The Olympic effect on property and equity investors; COVID-19 Disaster Payments and super
Listen now
Do lockdowns boost property prices? Are short-sellers levelling the playing field? Did you lodge your tax returns early?
Listen now
Will lockdowns halt the housing boom? Is the metaverse taking over? And the cons of lodging your tax returns early
Listen now
Are you being priced out of the market? Have you got the Tuesday blues? And are you ready for the upcoming super changes?
Listen now
Salary
Why a salary bump is not a now-or-never scenario
After a decade of low inflation and low wage growth, the bargaining power workers have to negotiate better conditions are starting to grow, but whether or not it leads to stronger wages remains to be ...Read more
Salary
Treasurer to reassess COVID payments as 1m Aussies are locked out, but JobKeeper is ruled out
With over 1 million Australians currently in lockdown without additional support, the Treasurer has conceded he will assess the current payment packages, but has blatantly refused to yield to pressur...Read more
Salary
Apply to me directly: ANZ boss
Following a call to get older Aussies back into the workforce, ANZ boss has gone a step further telling potential workers they should apply directly to him. ...Read more
Salary
Qantas workers warned of stand-downs as unions rehash calls for ‘Aviation Keeper'
Workers at the national airline have been warned that the COVID-19 border closures could mean the airline will stand down employees again, as the unions call for government support. ...Read more
Salary
Struggling to find staff? Your inaction on social issues could be to blame
Australian employees are increasingly likely to call it quits with a company that has a poor record on social issues or mental health, new research has shown. ...Read more
Salary
Job losses rise as $155m in disaster payments is deposited into accounts
Australia’s decade-low unemployment rate is set to spike just as the country’s efforts were being celebrated, with key stakeholders questioning whether current government support goes far enough i...Read more
Salary
Time to get older Aussies back in the workforce: ANZ
A big four bank CEO is encouraging older Australians to return to the workforce, as the country continues to battle skill shortages led by the closure of international borders. ...Read more
Salary
Unemployment falls to decade low
Australia’s unemployment rate has fallen below 5 per cent for the first time in over a decade, official figures have revealed. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
