The Department of Social Services has released data showing that the number of Australians on long-term unemployment benefits – “Newstart” – increased to the highest level on record in December 2014, with 527,318 Australians on Newstart for more than a year, up 12.7% from a year ago (see below table).
The total number of Newstart Recipients also rose 4.9% over the year, from 711,438 to 746,294.
The rise in the number of people receiving Newstart is perhaps unsurprising, given the steady increase in unemployment, particularly amongst Australia’s youth (see next chart).
It also represents another headache for the Abbott Government, whose response so far has been to try to make it more difficult for under-30s to receive unemployment benefits and to implement draconian work-for-the-dole measures, which have been proven to be ineffective.
Finally, the growing unemployment problem, which is only likely to worsen as the mining investment boom unwinds and local car assembly shutters, highlights the egregiousness of the Abbott Government’s open slather approach to so-called temporary 457 work visas, which risks depriving Australians of job opportunities and adding further to the pool of under/unemployed Australians.
