Media Release: Employment Grows –But Faster Growth in Drop Outs
The May ABS Labour Force figures show growth in employment continuing but at a much slower rate than the growth in the working age population (WAP) – over the past 12 months employment rose by only 0.9% while the WAP increased at double that rate (1.8%).
This indicates further large increases in those who have given up actively looking for work.
Labour Force – Increases Since May 2013
Employment 994 0.9
Working Age Population 3,398 1.8
Although the unemployment rate is unchanged at 5.8% (S Adj), this does not provide an accurate indication of the weakness of the labour market. A much more important test is whether the growth in employment is keeping up with the working age population increase. Before the Fair Work legislation employment was growing faster than the WAP.
Unless there is a major improvement in labour demand the Abbott Government will not achieve the budget forecast employment growth of 1.5% in 2014-15. And Abbott’s pre-election jobs target of a one million increase within five years will fall well short. Read more