Australian labour market – continues to deteriorate – fiscal stimulus needed
The last few months Australian Bureau of Statistics data has shown that Austrlia is becoming a nation of part-time employment. The latest labour force data released today by the Australian Bureau of Statistics – Labour Force data – for September 2016 shows that trend to be intensifying with negative employment growth being recorded for the second consecutive month and a 0.4 decline in the participation rate over the same period. Over the last 12 months, Australia has produced a total (net) of 163.1 thousand jobs overall with 196.1 thousand part-time jobs being offset by the higher quality loss of 86.5 thousand jobs. 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 Federal government should immediately renounce its ill-informed austerity narrative and announce a rather sizeable fiscal stimulus to provide some fiscal leadership to the nation. This should include 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. The deteriorating data is staring us all in the face now! There is no room for nuance.