The following chart from Alex Joiner, chief economist at IFM Investors, shows that Peter Costello’s Baby Bonus kids are hitting the labour market now:
This can bee seen in the following chart showing the growth in Australia’s civilian population aged 15-plus:
Australia’s civilian population aged 15-plus grew by 2.9% over the year to April, faster than the nation’s population growth of around 2.5%.
While most of this growth in the labour supply has come from record net overseas migration, the coming of age of the Baby Bonus generation has also contributed to the strong labour supply growth.
Young Australian labour market entrants are facing tough conditions, with Australia’s economy suffering a deep per capita recession, stalling job growth, and declining hours worked across the economy.
More worryingly for young Australians, they are competing for jobs with record numbers of migrants. This has driven the supply of entry level jobs through the floor:
It has also driven the number of applicants per job ad 55% above pre-pandemic (2019) levels, according to SEEK:
Given that the RBA and federal budget project that Australia’s unemployment rate will continue to rise into next year, amid ongoing strong labour supply growth and weak demand, the Baby Bonus generation faces a difficult time securing stable employment.
