Australian labour market – continues to languish

The latest labour force data released today by the Australian Bureau of Statistics – Labour Force data – for April 2016 show that those ominous signs that have been apparent for most of this year are still hovering above the labour market. Total employment growth was virtually non-existent with only 10,800 (net) jobs created. Full-time employment decreased 9,300, while part-time employment increased by 20,200. It is the second consecutive month of negative full-time employment growth, which highlights the deteriorating labour market situation in Australia. There was also a decline in hours worked which is now trending downwards. Over the last six months, around 87 per cent of the net jobs created have been part-time. The growth in part-time work suggests that overall the quality of work in Australia again deteriorated. So overall a poor outcome. Unemployment rose marginally this month but this is largely because the weak employment growth is interacting with even weaker labour force growth. The participation rate fell again. The teenage labour market remains in a poor state and requires urgent policy intervention. Overall, with weak private investment now on-going, the Australian labour market is looking very weak and the Federal government should have introduced a rather sizeable fiscal stimulus in its recent fiscal statement. This should have included a large-scale public sector job creation program which would ensure teenagers regained the jobs that have been lost due to the fiscal drag over the last several years. However, the Federal government appears incapable of addressing this dire issue. It is embroiled in mythical discussions about running out of money and not being able to defend the economy if there is another crisis. All make believe, while the real world does head towards another major rift. It is up to the Opposition to shift the political agenda (in the current election campaign). But, they are missing in action on these important issues.

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