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Thursday’s labour market survey from the Australian Bureau of Statistics (ABS) suggested that record labour supply growth from record levels of net overseas migration (NOM) is beginning to drive up unemployment.
Australia’s working age population increased by 45,100 in April (2.4% year-on-year) with the population now only 140,000 smaller compared to if the pandemic hadn’t occurred.
As shown by IFM Investors chief economist below, “the rapid expansion of the labour force is already seeing upward pressure on the number of unemployed people”:
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About the author
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.
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