Yesterday’s employment report from the Australian Bureau of Statistics (ABS) revealed that the number of jobs across the Australian economy has fully recovered from COVID, rising 0.6% in the year to March:
Superficially, Australia’s youth – defined as those aged 16 to 24 – have largely missed the recovery, with the number of youth jobs still down 2.0% (39,700 jobs) on March 2020 – versus jobs growth of 1.0% (114,000) across the rest of the labour market:
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The youth jobs recovery has also been driven by part-time jobs, which rose by 1.3% (+14,700) in the year to March 2021, whereas full-time jobs declined by 6.4% (-54,400):
Despite these job losses, the youth unemployment rate declined to 11.8% in March, which is only a whisker above the pre-COVID level (11.6%):
This came despite the youth participation rate running 0.9% above its March 2020 level:
The reason why the unemployment rate has fallen despite annual job losses and rising participation is because the youth population fell by 94,800 (2.9%) in the year to March 2021 due to the loss of temporary migrants.
This is proof positive that the collapse in immigration is benefiting Australia’s youth.
Basically, the reduction in young migrant workers has more than offset the loss of youth jobs, resulting in better employment opportunities for Australian youth.
Next up, wage growth.
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