60,000 more Australians off welfare: Department of Social Services figures show

The number of Australians on unemployment benefits has dropped to the lowest level since April last year.

About 970,700 job seekers are still receiving unemployment benefits – around 20 per cent more than in February last year.

The number of Australians on unemployment benefits has dropped to the lowest level since April 2020, as a lift in payrolled jobs signalled the post-Delta labour market recovery would extend into December.

New Department of Social Services figures showed a further 60,000 people moved off JobSeeker or Youth Allowance (Other) benefits between the end of October and December 10, as a tight labour market and post-lockdown hiring spree helped more into work and off welfare.

That left 970,700 job seekers still receiving unemployment benefits – around 20 per cent more than in February 2020 and before the Covid-19 pandemic struck. But there were about 650,000 fewer than the peak of more than 1.6 million people in August 2020 during the national lockdown.

The government figures came as a new report from the Australian Bureau of Statistics revealed the number of payrolled employees lifted by 0.3 per cent over the two weeks to November 27.

That period covered the fortnight after the November labour force survey, which showed a massive 366,000 lift in employment and a plunge in the official jobless rate to 4.6 per cent, from 5.2 per cent in the month before.

Payroll jobs in NSW and Victoria – where lengthy Delta restrictions were removed through October – lifted by 0.4-0.5 per cent, which NAB economist ­Taylor Nugent said was “suggestive of further gains in employment beyond the sharp recovery seen in November”.

“Today’s data do nothing to change our assessment that the strength seen in the November employment numbers was genuine and some further employment gains in NSW and Victoria can be expected in December,” Mr Nugent said, adding that he expected the next labour force statistics release on January 20 would show an unemployment rate of below 4.6 per cent.

 

As national cabinet on Wednesday declined to endorse a nationwide mandate to wear masks indoors, the impact of Omicron, particularly on services industries, was “the key risk to continued labour market improvement”, Mr Nugent said.

And with signs that the rapid spread of the new variant had triggered more cautious behaviour even in the absence of restrictions, Westpac senior economist Justin Smirk said the payroll figures were “setting the scene for a more modest gain in employment” after the 366,000 lift in the November labour force statistics.

“It appears the recovery flattened as we moved through November, particularly in Queensland,” Mr Smirk said.

Demand for labour, however, remains sky-high.

New National Skills Commission data showed job ads edged higher again last month, to maintain 13-year highs of 252,300, or 50 per cent more than before the pandemic.

The NSC report showed the most in-demand jobs were for call centre workers and receptionists, at 19,000 vacancies, or 50 per cent more than had been typical before the health crisis.

The 14,100 vacancies for IT professionals was a third higher than pre-pandemic. There were 13,500 sales assistants roles up for grabs – 80 per cent higher than pre-pandemic.

Carers and nurses accounted for an additional 22,000 job ads, split evenly between the two occupations, or about 80 per cent and 70 per cent more than before Covid, respectively.

Amid widespread reports of labour shortages, the number of industrial disputes has climbed from very low levels to around three-year highs, with unions winning their members solid annual pay rises of 3 per cent or more.

But the Reserve Bank of Australia continues to see only a “gradual” lift in wages, despite the tight labour market.

The RBA explained that employers were telling its business liaison program that they anticipated handing over pay rises in the vicinity of 2.5 per cent in the coming year.