Unemployment figures are extremely important as they represents the number of Australians looking for work at a point in time.
However, unemployment is seasonal because of events such as football finals (AFL & NRL), Spring Racing Carnival, Christmas & New Year retailing season and there are different ways of measuring unemployment
According to Roy Morgan Research, in October real unemployment in Australia is 8.8% (up 0.5% in a month); but down 0.3% from a year ago (9.1%)
In October 2015:
- 12,663,000 Australians are in the workforce (up a large 654,000 since October 2014) and 11,553,000 Australians are employed (up a large 634,000 since October 2014);
- 7,677,000 Australians are employed full-time (up a large 443,000 since October 2014);
- 3,876,000 Australians are employed part-time (up 191,000 since October 2014);
- 1,110,000 Australians are looking for work: 8.8% of the workforce – up 20,000 since October 2014 (but the unemployment rate is down 0.3% due to population growth);
- 1,088,000 Australians are under-employed – working part-time and looking for more hours: 8.6% of the workforce – down 29,000 (or 0.7%) since October 2014;
- Now 2,198,000 Australians are unemployed or under-employed: 17.4% of the workforce – down 9,000 (down 1%) since October 2014.
- This month’s increase from 8.3% to 8.8% means the latest Roy Morgan unemployment estimate is now 2.6% higher than the figure currently quoted by the ABS for September 2015 (6.2%).
Gary Morgan says:
“The headline monthly Roy Morgan unemployment estimate is extremely important as it represents the number of Australians looking for work at a point in time. However, unemployment is seasonal because of events such as football finals (AFL & NRL), Spring Racing Carnival, Christmas & New Year retailing season, Easter-break and other events during the year, so to see how the economy is going it is useful to compare the point in time year on year.
“Australian employment was 11,553,000 (up a large 634,000 since October 2014).
The strong rise in employment has been led by a large increase in full-time employment over the past year to 7,677,000 (up 443,000) while part-time employment has increased at a slightly slower rate to 3,876,000 (up 191,000) according to today’s Roy Morgan October employment estimates.
“Although employment in Australia has increased strongly over the past year, the unemployment rate has only fallen slightly to 8.8% (down 0.3% from a year ago) while under-employment is now at 8.6% (down 0.7%).
The increase in jobs over the past year hasn’t been enough to make much difference to the overall level of unemployment and under-employment – now a total of 2.198 million Australians (17.4%, down 1.0%) are unemployed or under-employed (down only 9,000 from a year ago).
“The biggest challenge facing new Prime Minister Malcolm Turnbull and Treasurer Scott Morrison before next year’s Federal Election is to implement policies that make a real difference to the over 2 million Australians looking for work or looking for more work.
The continuing speculation about major taxation reform is a promising sign – but only if the hard decisions are made and the contentious reforms are implemented.
“Successful right-wing political leaders in recent years including New Zealand Prime Minister John Key, New South Wales Premier Mike Baird and former Prime Minister John Howard have all made courageous decisions on reforms including introducing a GST (Howard) and increasing the rate of the GST (Key).
Their successful stewardship of significant reforms increased their political capital to make further reforms down the road in subsequent years.
“For Turnbull & Morrison to be successful in the current economic climate they need to make their mark on improving the productivity of the Australian economy by increasing the flexibility of the Australian labour force.
The Coalition’s policy of increasing the GST may be both fair and needed, but it doesn’t solve the big issue that confronts the Australian economy.
“The Government’s main priority must be to eliminate the sizeable ‘cash economy’ in Australia which will free-up the Australian labour market and have a much bigger impact on increasing productivity and employment growth throughout Australia than a simple increase in the GST.
“The widespread wage sham and payroll falsification uncovered at 7-Eleven Stores and alleged at several other franchisors includingUnited Petroleum, Bakers Delight, Dominos, Nandos and Subway confirm what we have been saying for years about the ‘cash economy’ – it must be stopped by the Federal Government.
“The ‘cash economy’ consists of hundreds of thousands of Australians in hospitality, retail, trades, building and the like.
The only viable solution to deal with the cash ‘rorts’ uncovered throughout the economy in recent months is to declare an amnesty and allow the economy to start afresh.
Unfortunately the issues created by Australia’s large ‘cash economy’ are ignored by politicians and the Fair Work Judiciary.”
|Roy Morgan Unemployed and ‘Under-employed’* Estimate|
|Unemployed or ‘Under-employed’*||Unemployed||Unemployed looking for||‘Under-employed’*|
*Workforce includes those employed and those looking for work – the unemployed.
This Roy Morgan survey on Australia’s unemployment and ‘under-employed’* is based on weekly face-to-face interviews of 456,107 Australians aged 14 and over between January 2007 – October 2015 and includes 4,201 face-to-face interviews in October 2015.
*The ‘under-employed’ are those people who are in part-time work or consultants who are looking for more work. (Unfortunately the ABS does not release this figure in their monthly unemployment survey results.)
SUBSCRIBE & DON'T MISS A SINGLE EPISODE OF MICHAEL YARDNEY'S PODCAST
Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.
PREFER TO SUBSCRIBE VIA EMAIL?
Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.