The November quarter employment data from the Australian Bureau of Statistics (ABS) reveals that spending on the National Disability Insurance Scheme (NDIS) continues to fuel jobs growth in the Health care and social assistance industry.
In the year to September 2019, growth in Government Final Consumption Expenditure (GFCE) surged by 6.0% – the highest since 1985 – driven by the ramp-up of the $22 billion a year NDIS:
Accordingly, the number of jobs in the Health care and social assistance industry surged another 28,100 over the November quarter, as well as by 80,700 year-on-year:
The Health care and social assistance industry’s share of Australian jobs also hit a record high 13.5% in the November quarter and now dwarfs retail (9.7% share), which is Australia’s second largest employer:
Interestingly, the lion’s share of recent wage growth has also been driven by the Healthcare and Social Assistance sector, where wages surged by 3.2% in the year to September 2019, dwarfing the wage growth experienced across all other industries:
The Health care and social assistance industry’s contribution to GDP growth has also risen strongly; albeit nowhere near the growth in employment:
Again, much of this increase can be attributed to the ongoing rollout of the $22 billion a year NDIS.
The Department of Employment projects the dominance of the Health care and social assistance to continue over the next five years:
Clearly, Australia’s bedpan economy has become a ward of the state, heavily reliant on the Australian taxpayer to deliver both jobs and wage growth.
It’s the economy you have when you don’t have an economy.