Real unemployment rate 11.6%…or 20.2%…

As mentioned earlier:

The truth is even worse. 3.5m JobKeeper recipients are recorded as employed. The underutilisation rate, which is the only measure of unemployment ex-a few Uber hours, is 20.2%

It’s very, very ugly.

David Llewellyn-Smith
Latest posts by David Llewellyn-Smith (see all)

Comments

    • This ..

      Most of my mates (professionals) have agreed to temporary 20% pay-cuts. But I wonder, if the economy doesn’t pick up soon, whether there might be some extensions of these pay-cuts. It’s brutal on a firm’s cashflow to suddenly have to ramp up the wage bill again when the revenues of old are simply not there ..

  1. My local pub looks like it has survived so about a dozen jobs saved. Arrow 2 and I are going there tonight for beer and cursing.

    On the other hand, my wonderful local bookshop/coffeeshop/music venue closed a couple of weeks ago after 47 years in business. One of the owners was the daughter of the guy who opened it in 1973. Their landlord wouldn’t provide rent relief and that was it. A dozen jobs lost.

    What a miserable time this is, and what fools we have dealing with it.

    • What was the bookshop/cafe called? That landlord’s a d1ck. 50% of something’s better than 100% of nothing.

      • Beyond Q. 40+ years at the Curtin shops, forced out because their premises was turned into apartments so they moved to the Weston shops about 4 years ago. A wonderful and prosperous business destroyed and people impoverished by stupidity and greed. I’m very p1ssed off.

      • Ian ArunMEMBER

        being a devils advocate sometime landlord is forced to do this. if they lower rent property gets revalued and gets a margin call from bank.

  2. working class hamMEMBER

    Wasn’t the labour market approximately 14m last time these figures were bounced out?
    People need to know how bad it is to start making life decisions.
    Career change, insolvency, stick it out, rent cuts, sell assets etc. If the real condition of the economy is hidden, you end up with the shivshow we have now.

    • frag outMEMBER

      “People need to know how bad it is to start making life decisions.” that does not seem to be view held by Fed govt or RBA. Arguably, if people en masse started making rational decisions in response to depression-like conditions it would make it worse. In any case I don’t believe most Australians care enough to spend the few seconds thinking it through to form their own conclusions (whatever it may be) when there’s so many other mindless things to waste time on. And so it goes.

      • Yeah, central banks clearly want to distort markets by pumping cash to support companies like Hertz so that chumps will continue to pay a fortune for their worthless shares. It’s not possible for many people to make sensible life decisions (eg where should I invest my money) under such deceptive circumstances.

  3. Reus's largeMEMBER

    Interestingly one of the local rub and tug joints in Booker Bay has shut up shop, times must be dire indeed!

  4. ChristopherMEMBER

    Took the $10k out of super today along with my wife, looking at these numbers we thought it best to bolster the accessible warchest.

      • codeazureMEMBER

        I always liked the quote from George Best (English footballer from long ago)
        “I spent a lot of money on booze, birds and fast cars. The rest I just squandered.”
        There’s a guy who knew how to live life.
        Not that I’m suggesting Christopher should follow the same path – his wife might not be too impressed 😉

        • DominicMEMBER

          Always enjoy that quote – they don’t make them like him anymore. It must be something about that era — compare the rockstars of now vs then. Today’s lot would rather spend time in the gym, drink organic goji-berry smoothies and Tweet virtuous [email protected] to their brain dead fans.

        • Hill Billy 55MEMBER

          Poor George just did a twist and flick in his grave. He was Northern Irish. Calling him English, or from England! Sheesh!

          • codeazureMEMBER

            Oh no! You’re right. That even worse than calling a Kiwi Australian. And some of my ancestors are from there, so I should have remembered he was born there.

    • Did you actually have a decrease in income to qualify you? Or did you just take it out? I have had no decrease but still strongly considering taking the full 10k out. I haven’t done it yet because I’m worried about getting in sh1t.

    • Yeah I finally applied and the ato approved it today. I applied for thefull 10k. I’ve been stood down but back to work next week. It’s going straight into the house deposit account and that’s where it is staying until I either buy something or if I end up missing out it’ll go back intosuper in 21/22. I’m disciplined enough that it won’t be misspent. I didn’t want to withdraw it but as a mid 40s low income single person I’m already at a disadvantage trying to get a mortgage at a level I’m comfortable with so I thought I didn’t have any choice. I’m considering taking out 4k in July. My super balance is so low its not going to help me in retirement anyway, it’s far more important I own my own living space. Fingers crossed housing goes down enough and I’ll be eligible for a mortgage

      • You might want to check that strategy with a banker or broker. I have been told that banks wont class any funds that are clearly from a COVID-19 superannuation release as savings.

        • That’s actually good news if it means that people can’t use it for their deposit. I’m aiming to have at least a 40-50% deposit from my own savings and anything else I get from the Covid super release would push me towards 50-60%. If it isn’t allowed to go into the deposit then it can be my emergency fund that can eventually go into an offset account.

      • Hill Billy 55MEMBER

        I have a friend who is 42 who is similarly disposed to making the $10K X 2 super withdrawal a house deposit. Seems like a better option than leaving it in super and building a row boat (to sleep under) when you retire.

  5. TailorTrashMEMBER

    Called a large credit card company today for some account help . Asked the helpful young skilled migrant
    where he was based . Told me Sydney ….and he was working from home …as are all his other customer service colleagues. Told him I hope big credit card company doesn’t get ideas to replace him working from his home in Sydney to someone working from their home in Manila or Bangalore . Said the thought had crossed his mind ……bet its very much on the minds of the bonus chasing managers of big credit card company too

  6. Employment massacre, but house prices will continue to rise!
    Maybe through some sort of new RBA alchemy unemployed punters will lodge their feces at the RBA as eligible collateral for REPO and then use as a deposit to get into the market. Afterward using Rehypothecation make ongoing payments.
    Come to think of it I should go early and start looking for suitable properties.