Pete Wargent blogspot


'Must-read, must-follow, one of the best analysts in Australia' - Stephen Koukoulas, ex-Senior Economics Adviser to Prime Minister Gillard.

'One of Australia's brightest financial minds, must-follow for accurate & in-depth analysis' - David Scutt, Markets & Economics Editor, Sydney Morning Herald.

'I've been investing 40 years & still learn new concepts from Pete; one of the best commentators...and not just a theorist!' - Michael Yardney, Amazon #1 bestseller.

Saturday, 16 September 2017

Is underutilisation falling?

Slack, but tightening

Yes, gradually, underutilisation in the labour force is declining.  

Down from 14.8 per cent in 2014 to 14.1 per cent. 

Some states are faring better than others. 

Much of the increase since 2012 has related to Western Australia, and to a lesser extent Queensland and South Australia. 

But looking at the trend figures, South Australia has seen a turnaround in fortunes lately - partly because of people moving to Melbourne, and partly due to an improving economy. 

Western Australia and Queensland also seem to have turned a corner, following a prolonged resources construction downturn. 

In New South Wales underutilisation continues to improve to the sort of levels historically associated with decent wages growth.

Meanwhile, stamp and transfer duty take in New South Wales is still going absolutely nuts, helping to fund an infrastructure boom.

The wrap

Overall, the figures suggest that there is a way to go before the labour force slack is taken up, but some inroads have at least been made. 

And perhaps the start of a gentle lift-off too for Adelaide?