While Australia continues to flood the labour market with migrants, who’ve taken the lion’s share of new jobs:
As well as flood the labour market with university graduates:
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Many of whom cannot gain meaningful employment:
With Australian graduate wage growth plumetting:
A record 98% of this year’s university graduates in Japan have found jobs, according to economist Albert Edwards:
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Extreme labour shortages have seen a jump in wage inflation and household incomes are now growing some 3% yoy, dragging consumer spending growth kicking and screaming in its wake (see below charts).
The Nikkei reports: “A record 98.0% of newly minted university graduates in Japan have landed jobs at the beginning of this fiscal year in April. The employment rate of job-seeking graduates rose 0.4 percentage points from a year earlier, up for the seventh consecutive year…”
“The employment rate among new high school graduates who sort jobs at the end of March gained 0.1 percentage point to 98.1%, up for the eighth straight year”.
This is what happens when you don’t continually flood your labour market with migrant workers. Unemployment falls and wages rise.
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
