Most read
‘Optimistic borrowers’ could endanger housing market, RBA says...
‘Optimistic borrowers’ could endanger housing market, RBA says...
Latest Podcast
Home values up 30% (or are they); NFTs taking the world by storm, and why Keatin...
Home values up 30% (or are they); NFTs taking the world by storm, and why Keatin...
Resources
There is $17.5 billion in lost and unclaimed super across ...
There is $17.5 billion in lost and unclaimed super across ...
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
Unions call for minimum wage increase as Australians get back to work
The unions are calling for the minimum wage to be increased to help aid the economic recovery from the COVID-19 downturn, as the latest job figures show Australians are getting back to work. ...Read more
Salary
Labour market’s ‘miraculous’ recovery
The economic recovery is continuing, with Australia’s unemployment rate continuing to fall, official figures show. ...Read more
Salary
Job ads hit 12-year high
Despite unemployment remaining above pre-pandemic levels, the number of businesses looking for staff has reached a 12-year high, a new study has revealed. ...Read more
Salary
Menulog pivots towards employment model
Menulog says it will move away from the independent contract model towards hourly pay within the next few years in an industry first – a move that has been praised by the unions. ...Read more
Salary
‘Exploited workers’ earning just $10.42 per hour
The unions have slammed the gig economy after it was revealed that workers are still earning below a minimum wage, even during peak times. ...Read more
Salary
Unemployment falls, job ads surge as recovery continues
Australia’s unemployment rate has hit a one-year low, while the number of businesses looking for staff has hit a 12-year high, new research has revealed. ...Read more
Salary
Job vacancies surge on eve of JobKeeper ending
Despite JobKeeper’s official end just over a week ago, businesses across the nation are looking for employees, stats have revealed. ...Read more
Salary
‘Cheap trick’ stimulus sees Virgin stand down hundreds of workers
Hundreds of Virgin Australia staff have been stood down without pay for at least three weeks as the government ends support for businesses. ...Read more
Home values up 30% (or are they); NFTs taking the world by storm, and why Keating thinks Aussies will be ‘poor’ in retirement
Listen now
Raging floods, the tech stock bubble and the ongoing SG debate
Listen now
Meet the Manager with Trilogy’s Philip Ryan: RBA rates and property price growth
Listen now
The continued property boom, ethical investing and engaging with your super fund
Listen now
Salary
Unions call for minimum wage increase as Australians get back to work
The unions are calling for the minimum wage to be increased to help aid the economic recovery from the COVID-19 downturn, as the latest job figures show Australians are getting back to work. ...Read more
Salary
Labour market’s ‘miraculous’ recovery
The economic recovery is continuing, with Australia’s unemployment rate continuing to fall, official figures show. ...Read more
Salary
Job ads hit 12-year high
Despite unemployment remaining above pre-pandemic levels, the number of businesses looking for staff has reached a 12-year high, a new study has revealed. ...Read more
Salary
Menulog pivots towards employment model
Menulog says it will move away from the independent contract model towards hourly pay within the next few years in an industry first – a move that has been praised by the unions. ...Read more
Salary
‘Exploited workers’ earning just $10.42 per hour
The unions have slammed the gig economy after it was revealed that workers are still earning below a minimum wage, even during peak times. ...Read more
Salary
Unemployment falls, job ads surge as recovery continues
Australia’s unemployment rate has hit a one-year low, while the number of businesses looking for staff has hit a 12-year high, new research has revealed. ...Read more
Salary
Job vacancies surge on eve of JobKeeper ending
Despite JobKeeper’s official end just over a week ago, businesses across the nation are looking for employees, stats have revealed. ...Read more
Salary
‘Cheap trick’ stimulus sees Virgin stand down hundreds of workers
Hundreds of Virgin Australia staff have been stood down without pay for at least three weeks as the government ends support for businesses. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
