The latest Labour Force data has been released by the Australian Bureau of Statistics and it is not pretty.
Over the last 12 months, Australia has recorded a loss of 86,500 full time jobs and the creation of 196,000 part-time jobs. Employment growth for September was negative, yet the overall rate fell by 0.1% due to a 0.4% decline in the participation rate, i.e. unemployed people giving up looking for work, either permanently or temporarily.
The employment participation rate is now 64.5% of the population, down from its peak of 65.8% in November 2010. Even the most optimistic supporter of the government’s “jobs and growth” mantra would recognise this as an economy heading in the wrong direction.
The ABS September 2016 quarter figures show there were 1,011,100 underemployed and a total of 1,881,520 workers either unemployed or underemployed.
The Australian bureau of Statistics says, ‘The latest Labour Force release shows further increases in part-time employment. There are now 130,000 more persons working part-time than in December 2015, while the number working full-time has decreased by 54,100 persons.
From a long term perspective, Bill Mitchell describes the position thus: “Total official unemployment in September 2016 was estimated to be 705,100. However, if participation had not have fallen relative to November 2010, there would be 956,500 workers unemployed given growth in population and employment since November 2010.”
The obvious conclusion is that demand for labour is weak. Any government member who finds this trend encouraging should resign. It is a disgrace.
During the election campaign, Malcolm Turnbull continually stated that one of the key differences between the Coalition and Labor was that they (the Coalition) had a plan.
While they were never able to fully explain what that plan was, they were adamant that, beyond the gobbledygook, a plan existed. The plan, we were told, was intended to create jobs, albeit one totally reliant on the private sector providing those jobs.
As things stand, the private sector is waiting for the government to inject some stimulus sufficient enough to give them the incentive to invest. Neither seem able to show any leadership.
Whichever way you view them, the numbers continue to go south and the government continues to look incapable of stopping them. Treasurer, Scott Morrison and Minister for Employment, Michaela Cash are effectively missing in action.