Hints of recovery too late for some
PATRICK COMMINS
NEW payroll figures have shown a slight increase in the number of jobs through May, suggesting the worst of the COVID-19 hit to the labour market may be past.
The latest Australian Bureau of Statistics report on Australian Taxation Office payroll jobs and wages showed the number of roles across the nation increased by 1 per cent last month.
Total job losses between mid-March and May 30 are now at 7.5 per cent, charting a gentle recovery from the 8.5 per cent drop by midApril. Since March 14, when Australia recorded its 100th confirmed COVID-19 case, total wages paid are down 8.3 per cent.
Some of the hardest hit sectors such as hospitality showed some recovery, with payroll jobs in accommodation and food services lifting by 5 per cent through May, even as they remained down close to 30 per cent since March.
EY chief economist Jo Masters said the figures provided further evidence that the easing of restrictions was leading to a lift in economic activity.
But she cautioned that while conditions had improved, the nation was “still in the midst of a severe economic contraction which will result in economic scarring, firms that never reopen the doors and jobs that are lost forever”.
“Moreover, the true picture may not emerge until the JobKeeper support is wound back,” she said.
The ABS for the first time provided more granular detail on which industries had suffered the greatest job losses since mid-March.
A third of sports and recreation activities jobs have been lost since the start of the year, and 31 per cent of jobs in creative and performing arts.
The accommodation industry has lost 32 per cent of roles, and food and beverage services 29 per cent. More than 27 per cent of motion picture and sound recording payroll jobs have also gone.
In contrast, the pandemic coincided with a 10 per cent lift in the number of jobs in the gas supply industry, and 5 per cent more roles in fuel retailing. Chemical manufacturing jobs have risen by 3.5 per cent, and electricity supply jobs by 3.9 per cent.
The new figures confirmed that women had lost a greater number of jobs since March, down 8 per cent versus 6.3 per cent for men, although jobs worked by females in May recovered 1.4 per cent against a 0.4 per cent gain for males.
The update also showed that between March 14 and May 30, close to 40 per cent of roles lost were secondary jobs, against a 5.6 per cent fall in “main jobs”.
While the labour force figures measure whether a person is employed or not, the Australian Taxation Office data counts jobs.