Australian labour market – part-time trend intensifies as total employment declines
The last few months Australian Bureau of Statistics data has shown that Austrlia is becoming a nation of part-time employment – in the 12 months to July 2016, 84 per cent of net employment created has been part-time and underemployment (workers desiring more hours but unable to find them) has risen. The latest labour force data released today by the Australian Bureau of Statistics – Labour Force data – for August 2016 shows that trend to be intensifying with negative employment growth and sharply a declining participation rate. With more than 82.3 per cent of total net jobs created over the last 12 months being part-time, it is clear that Australia maintains its status as the nation of part-time employment growth with all the attendant negative consequences. Further, the only reason that the unemployment level and rate fell is because the labour force shrank faster than total employment. This was due to the 0.2 percentage point decline in participation. The teenage labour market remains in a poor state and requires urgent policy intervention. Overall, with weak private investment now on-going, the Australian labour market is looking in pretty dismal shape and the recently elected Federal government should have introduced a rather sizeable fiscal stimulus immediately upon re-election to provide some fiscal leadership to the nation. This should have included a large-scale public sector job creation program which would ensure teenagers regained the jobs that have been lost due to the fiscal drag over the last several years. There are no signs that our polity understands any of that.