Summary: Job losses continue through to the end of April; JobKeeper programme successful in stemming losses; end of it could see underutilisation rise further.
The ABS has released its latest payroll report containing new statistics on jobs and wages based on Single Touch Payroll data provided by the ATO. Job losses do not directly translate into additional unemployment as some people hold more than one job. The report’s figures are not seasonally adjusted.
Between the week ending 14 March 2020 and the week ending 2 May 2000, the total number of work positions in Australia contracted by 7.3%. Total wages fell by 5.4% over the same seven-week period.
The rate of weekly job losses slowed again. Total jobs fell by 1.1%, another “improvement” when compared with the 1.5% fall in the week ending 18 April. The “Accommodation & food services” and arts/recreation sectors began to see some gains, albeit after suffering heavy losses in previous survey periods. Losses in the “Professional, scientific & technical services” sector admitted it into the ranks of the sectors hardest hit over the past seven weeks.
ANZ senior Head of Australian economics David Plank said the Federal Government’s JobKeeper programme had been successful “in stemming a greater decline in jobs and wages…” However, he noted “there is a risk that the withdrawal of JobKeeper could see underutilisation continue to rise over a longer period…” The underutilisation rate is the sum of the unemployment and underemployment rates and it skyrocketed during April.