Jobs clawback sees 250,000 return to work

New payroll figures show a gradual recovery of the jobs lost in the immediate aftermath of the COVID-19 pandemic.

The latest payrolls figures come following data showing that more than half of employers are struggling to fill vacancies, in part because of the boosted unemployment benefit. Picture: Shane Zahner

Employers have taken about 250,000 Australians back on to their books since mid-April, representing about a third of the jobs lost in the initial four weeks of the COVID-19 crisis.

The latest Australian Bureau of Statistics report, which draws from Australian Taxation Office payroll data and captures about 80 per cent of the nation’s jobs, showed the number of payroll ­positions has lifted by 2.7 per cent since the April low.

The country recorded its 100th coronavirus case on March 14 and in the following four weeks social-distancing restrictions led to the forced closure of many businesses, resulting in an 8.8 per cent plunge in payroll jobs — equivalent to about 915,000 roles.

Despite the encouraging signs, the employment picture painted by the ABS remains grim: there are still 670,000 fewer payroll jobs than before the pandemic.

Economists also noted the employment recovery from the lows of April appeared to have stalled; the 0.1 per cent growth in jobs over the two weeks to the middle of June compared with 0.9 per cent growth in the preceding six weeks.

Total wages paid through the ATO’s one-touch payroll system nudged up 0.2 per cent over the week to June 13, with total pay still down 6.3 per cent since March.

Citi chief economist Josh Williamson said the figures showed the “signs are good that the easing of restrictions is creating demand for jobs”.

“However, the recovery is slow and what is needed is a further continuation of jobs and wages growth to all sectors,” he said.

The sectors hardest hit have shown the sharpest rate of recovery, although they remain heavily depressed. Across the month to June 13, there was a 3.8 per cent lift in the number of jobs in the ­accommodation and food service sector, but there were still 29 per cent fewer hospitality roles than in March.

 

The number of retail jobs across the four weeks to mid-June climbed 1.3 per cent, to be 5 per cent lower since the pandemic hit, while there was a 2.1 per cent lift in the number of arts and recreation jobs — the first sign of a recovery there, although there are still 24 per cent fewer roles compared with March. Payroll jobs for those aged under 20 — who have borne the brunt of the hit to employment — lifted 4.1 per cent across the month to June 13 but are still down 15 per cent.

The figures come amid speculation about how the Morrison government will move workers and businesses off emergency income support measures, such as the boosted JobSeeker payment and JobKeeper wage subsidy program, beyond the September ­expiry date. The Australian on Tuesday revealed ­National Skills Commission data that showed more than one in two employers who are struggling to recruit workers listed their top challenge as a lack of applicants, in part ­because boosted unemployment benefits are proving a disincentive for some to take on work.

Australian Chamber of Commerce and Industry director of employment Jenny Lambert told 3AW that she was “certainly hearing that there are some employers that are finding it hard to entice people off JobSeeker”.

Recent Seek job listings figures showed that the number of vacancies on the online site had been rising since late April but remained about 70 per cent of pre-COVID levels.