Jobless rate inches higher Economists expect April job data will be worse
AUSTRALIA’S unemployment rate rose by 0.1 of a percentage point in March but the data was collected before thousands were left jobless from coronavirus restrictions.
The unemployment rate inched higher to 5.2 per cent following the Australian Bureau of Statistics survey of about 50,000 people in the first two weeks of March.
The underemployment rate also increased by 0.1 percentage points to 8.8 per cent.
Economists say the March rise in the unemployment rate could be the tip of the iceberg as restrictions on venues such as pubs, clubs, restaurants and cafes were not imposed until the second half of the month, meaning the April data will be worse.
However, the bureau has said people receiving the JobSeeker payment will not automatically be counted as unemployed.
Changes to the JobSeeker program as a result of the pandemic mean recipients do not have to meet the usual requirements in looking for work.
BIS Oxford chief economist Sarah Hunter said this meant the number of people counted as unemployed would be small compared with the disruption of the economy.
The participation rate could be a better indicator, she said, as it captured those who had lost their job and were not looking for another. This measure showed employment in March was 1.8 per cent higher than a year ago but hours worked was just 0.8 per cent higher. Ms Hunter said these figures showed the pandemic was already having an impact early in the month.
Earlier yesterday, recruitment website Seek reported
Atomo co-founder and managing director John Kelly after the company made its debut on the ASX job ads fell by 33 per cent in March compared with the same time last year.
It also reported a 68.6 per cent dive in ads for the week ended April 12 compared with last year.
Treasury has forecast the economic shock of the virus will cause Australia’s unemployment rate to hit 10 per cent in the June quarter, meaning 1.4 million people will be out of work. Some believe the figure will be higher.
Westpac economists have tipped an 11.75 per cent unemployment rate by mid-year. Treasury said the rate could have tripled to 15 per cent if not for the government’s $130 billion JobKeeper wage subsidy scheme.
The government has pledged $320 billion in measures to help the economy overcome the virus, representing 16.4 per cent of gross domestic product.