Roy Morgan Research has released its unemployment estimates for August, with the nation’s unemployment rate rising 1.9% to 11.0%.
It is the highest unemployment rate for over two years since March 2021, during the middle of the pandemic:
Roy Morgan blamed the rise in unemployment on the rapid increase in labour supply amid record immigration:
“There’s been a rapid increase in the Australian population over the last year, a record increase of 706,000, and this has flowed through into a rapidly expanding labour market”.
“The Australian workforce increased by 484,000 compared to August last year”.
“Although there have been many new jobs created, the rapid workforce growth has outpaced the economy’s job creation as we deal with high inflation and rising interest rates”.
“Overall employment is up by 161,000 compared to a year ago while unemployment has increased by 323,000”.
The next chart from Macquarie Group Senior Economist Justin Fabo shows that it is only matter of time before the Australian Bureau of Statistics’ (ABS) unemployment rate rises:
Source: Justin Fabo (Macquarie Group)
The average number of applications per job ad has soared way above pre-pandemic levels, which also signals a significant lift in ABS unemployment:
Source: Justin Fabo (Macquarie Group)
The record increase in labour supply is causing major problems for Australian workers, who face the combination of rising unemployment, sagging wage growth, and a worsening rental crisis.
Running a record immigration program into a slowing economy and during a housing crisis is political suicide from the Albanese Government.
