Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

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Friday, 11 March 2016

Record employment...kind of

Employment at record high

-a record 13.174 million Australians in the workforce (up by a huge +648,000 since February 2015); and 

-a record 11.855 million Australians are employed (up a by an even greater +710,000 since February 2015)

However, Roy Morgan also reports that there are:

-1.319 million unemployed Australians, and 1.161 million under-employed Australians

Combining the unemployment and underemployment figures shows that 2.48 million Aussies are unemployed or underemployed.

ABS results

It is quite popular to highlight the differences and discrepancies between Roy Morgan's survey and that of the Australian Bureau of Statistics (ABS).

Yet although the numbers are a little different, the trends are not that dissimilar.

The ABS also records around 11.9 million total employed, although it categorises a slightly higher 8.186 million of those as full time employed.

Although of course most people are jolly pleased that the unemployment rate has not risen as high as had been projected, with the trend unemployment rate now 5.8 per cent, this is still too high for comfort, and there is too much complacency around!

Here are the trend unmployment rates by state:

The ABS quarterly figures also show a higher rate of underemployment rate than acceptable, with this ratio elevated in Tasmania and South Australia, and rising in Western Australia.

New South Wales scores best on most labour force metrics, while the underemployment ratio has declined in Queensland lately.

The employment ratio, participation rate, underutilisation and monthly hours worked charts track a very similar story, with New South Wales leading the way, and Queensland improving.

Markets still expect interest rates to be cut again in Australia, but not until early next year.