Jobs fate is worst since ‘98

UNEMPLOYMENT rose in June, sparking fears the “COVID-19 economic recession” will dampen prospects of an early recovery.

Latest labour figures from the Australian Bureau of Statistics show Australia’s June unemployment rate rose to 7.4 per cent, a 0.3 per cent lift on the previous month.

The highest monthly unemployment rate since November 1998 has caused what Prime Minister Scott Morrison called Australia’s “COVID-19 economic recession”.

Unemployment rose by 69,300 to 992,300, with about 70 per cent of the newly unemployed not in the labour force in May.

“The easing of COVID-19 restrictions in June saw an extra 280,000 people in the labour force, with more people in employment, and more actively looking and available for work,” ABS head of statistics Bjorn Jarvis said.

Total employment did improve over the month compared to May, with 210,800 Australians finding some form of employment.

The ABS noted additional jobs came from part-time employment, but full-time employment fell by 38,100 jobs in the same period.

Mr Morrison on Thursday said a part-time job was better than not having any job. “The majority of jobs obviously are part-time employment, not full-time employment,” he said.

“That’s to be expected in the economic situation that we’ve seen emerge over these many months.”

Total hours worked rose 4 per cent in the month but remained 6.8 per cent below pre-COVID-19 levels in March.

Women increased their working hours more than men

THE MAJORITY OF JOBS OBVIOUSLY ARE PARTTIME EMPLOYMENT, NOT FULL-TIME EMPLOYMENT

SCOTT MORRISON

but both remained well below March levels.

The underemployment rate fell by 1.4 per cent to 11.7 per cent but is still 2.9 per cent below pre-pandemic levels.

The under-utilisation rate fell 1 per cent to 19.1 per cent.

Mr Morrison said the economy was “fighting back” but expected the recovery to be hurt by the Victoria lockdown.

“In July, I expect we will see impact from Victoria,” he said.

“But … the flexibility we’ve seen in the labour force has meant it’s been able to keep people in jobs — maybe not as many hours as they once had — but they are still in jobs …”