skip to Main Content

Australian labour market – government austerity bias deliberately elevating wastage

The Australian Bureau of Statistics released the latest data today – Labour Force, Australia, July 2019 – which reveals a labour market with where employment growth is not strong enough to absorb the increasing labour force as participation continues to creep up. As a result, unemployment rose again, albeit modestly. The disturbing trend in this rather weak environment is that underemployment rose by 0.2 points) to 8.4 per cent further and the total labour underutilisation rate (unemployment plus underemployment) rose as a consequence to 13.6 per cent. Both the unemployment and underemployment rates are persisting around these elevated levels of wastage making a mockery of claims by commentators that Australia is close to full employment. The unemployment rate is 7 percentage points above what even the central bank considers to the level where inflationary pressures might be sourced from the labour market. This persistence in labour wastage indicates that the policy settings are to tight (biased to austerity) and deliberately reducing growth and income generation. My overall assessment is the current situation can best be characterised as remaining in a fairly weak state.

Read More
Back To Top