More than one million out of work: July unemployment data

The country has hit a worrying coronavirus milestone, with the more than one million Australians out of work for the first time.

In a first for the nation, more than one million people were out of work, available to work and actively looking for work last month.

Labour force figures from the Australian Bureau of Statistics released Thursday showed Australia’s jobless rate had increased just under 0.1 per cent from June to 7.5 per cent.

Economists had predicted it would be close to 8 per cent, while the effective unemployment rate stands at 9.9 per cent.

“For the first time there were more than one million people out of work, available to work and actively looking for work,” ABS spokesman Bjorn Jarvis said.

“The number of unemployed people rose by nearly 16,000 between June and July.”

In July 1,009,400 Australians were jobless, compared to 993,700 people in June.

Australia’s effective unemployment rate – which takes into account not only people who are officially unemployed but those who have left the labour force altogether or are on zero hours – dropped 1.3 per cent from 11.2 per cent in June.

More than 1.5 million Australians are on JobSeeker. Picture Glenn Hampson

However, employment increased with 114,700 jobs added between June and July 2020.

Full-time employment rose by 43,500 people and part-time employment by 71,200 people.

The largest increases in employment were recorded in New South Wales with 56,800 people now in work.

Seasonally adjusted figures show 308,600 people in NSW were jobless in July.

Almost 23,000 people in Victoria also got a job before stage four restrictions hit, and a further 19,100 people were employed in Western Australia.

Small decreases were seen in Queensland where 3700 more people found themselves out of work, and in the Northern Territory where 500 people were affected compared to June.

Mr Jarvis said the July data provides insight into the Australian labour market during stage three restrictions in Victoria.

“The August labour force data will provide the first indication of the impact of stage four restrictions,” he said.

Compared to a year ago, there were 282,800 fewer people employed full-time and 131,700 fewer people employed part-time.

The number of hours worked by Australians had a 1.3 per cent boost in July, and increased more for female than male workers.

HOW YOUR STATE FARES

• Tasmania: 6 per cent unemployment

• South Australia: 7.9 per cent unemployment

• Queensland: 8.8 per cent unemployment

• Victoria: 6.8 per cent unemployment

• NSW: 7.2 per cent unemployment

• Northern Territory: 7.5 per cent unemployment

• Western Australia: 8.3 per cent unemployment

• ACT: 4.6 per cent unemployment

Employment Minister Michaelia Cash says the government has launched a site called The Jobs Hub for people to find jobs in their local area. Picture: NCA NewsWire/Andrew Taylor

THE ‘REAL’ NUMBER IS MUCH HIGHER

CommSec chief economist Craig James had anticipated unemployment would rise to 7.8 per cent.

“Jobs rose more than expected,” he said.

“But we know that there is a long way to go, especially incorporation of the effects of both stage four and stage three lockdown restrictions in Victoria.”

CommSec warned further border restrictions would constrain economic recovery, with Commonwealth Bank’s economic arm currently forecasting a 9 per cent peak in unemployment.

“The quicker that the jobless rate peaks and starts falling, the less damage and scarring will be done to the longer-term health of the economy,” Mr James said.

The nation’s official jobless rate is expected to peak about 9.25 per cent in the December quarter, and remain about 8.75 per cent in 2020-21, according to Treasury forecasts.

Employment Minister Michaelia Cash said the July labour force figures showed that when the health crisis was under control and restrictions on the economy were eased, jobs returned.

Senator Cash said the return of 114,000 jobs highlighted the reliance on small and family businesses across Australia.

“What we have seen for the month of July is a very, very strong return of women to the workforce … almost 60,000,” she said.

“But also an increase in the number of youth participating in the workforce, around 55,000.”

Senator Cash said the government was not blind to the “billions and billions of dollars” the stage four lockdown in Melbourne was having on the Australian economy.

“Every job loss as a result of COVID-19 is devastating, and that is why the Morrison Government has put in place a suite of measures to help employers and employees to get through this crisis.”

But Opposition treasury spokesman Jim Chalmers has again put the pressure on the government to announce job-creating measures before the Budget on October 6.

“Even numbers this confronting don’t tell the full story,” Mr Chalmers said.

“Every day of delay, every day without a jobs plan, means too many Australians are out of work.”

Australian Council of Trade Unions president Michele O’Neil said even with a national wage subsidy scheme, more than a million people were now looking for work.

“We know that the real rate of unemployment is much higher,” she said.

“These numbers are from before the second lockdown in Victoria, which has stood down hundreds of thousands of workers.

“The million Australians now out of a job, and the millions more who are either reliant on JobKeeper or worried about their future, need leadership from this Government. They need a plan for jobs.”

– with Gerard Cockburn