ABS employment in detail: Workers rejoice at zero immigration

As already reported, Australia’s unemployment rate fell 0.4% in December to just 4.2% – the lowest reading since August 2008 just prior to the Global Financial Crisis:

Total jobs rose by 64,700 to 13,242,000 people in December, with full-time jobs rising 41,500 and part-time jobs rising by 23,300:

The participation rate remained dead flat at 66.10%:

The next chart plots the participation rate over the long-run. It is now tracking near historical highs:

Whereas the employment-to-population ratio has hit a record high:

Total employment has rebounded 9.1% from its May 2020 low and is now running 1.9% above its pre-COVID level:

Full-time employment has rebounded 6.6% from its June 2020 low and is now 2.5% above its February 2020 pre-COVID level.

By comparison, part-time employment has rebounded 15.4% from its May 2020 and is running 0.5% above its February 2020 peak:

Hours worked is the best measure of labour market strength, given it is not impacted by changes in the participation rate. The news is positive here too with aggregate hours worked rising 1.0% in December to be running 2.7% above its February 2020 pre-COVID level:

All major states have experienced positive annual jobs growth:

Unemployment rates across all states have fallen under 5%, with three under 4%:

Finally, the underemployment rate fell 0.9% to 6.6% and is now tracking at its lowest rate since November 2008. Underutilisation fell 1.3% to 10.8% and is also tracking at its lowest rate since November 2008:

Clearly, Australian workers are benefitting greatly from negative immigration:

Australia’s labour market wouldn’t be nearly as tight if we continued the pre-COVID policy of importing 180,000 plus migrant workers into the economy every year.

Unconventional Economist
Latest posts by Unconventional Economist (see all)

Comments are hidden for Membership Subscribers only.