Lockdown hits 1-in-10 Sydney jobs, latest payroll figures reveal

The NSW hospitality and arts industries have been hardest hit, while nationally there were 3.3 per cent fewer payroll jobs since June 26.

Employers have stood down workers en masse through the pandemic, but economists believe they will return to their jobs as restrictions ease. Picture: NCA NewsWire / David Crosling

One in 10 workers in Greater Sydney paid through the Australian Taxation Office’s payroll system have been stood down since the city’s lockdown began on June 26.

This compared with a 4 per cent drop in payroll jobs in ­regional NSW since late June, and an 8 per cent fall across the state, the fortnightly Australian Bureau of Statistics figures show.

The NSW hospitality and arts and recreation industries have been hardest hit by health restrictions, with three in 10 payrolled employees in both sectors stood down since June 26.

The next hardest-hit industry in NSW was “other services” – which includes hairdressers and personal trainers – where there were 20 per cent fewer payrolled jobs since late June.

Nationally, there were 3.3 per cent fewer payroll jobs since June 26, but only 1.7 per cent fewer outside NSW, led by Victoria’s 1.7 per cent drop and the ACT’s 1.5 per cent ­decline.

Only in NSW were there fewer payroll jobs than before the pandemic, with the ABS stats revealing a 4.1 per cent decline since early last year.

Sydney’s payroll job losses since June 26 were the most acute in the southwest of the city, which recorded a 14 per cent collapse. The next hardest-hit areas were in Parramatta, down 12 per cent, and the inner west, down 10 per cent.

The largest drop in payroll jobs over the two weeks to Aug­ust 14 were in NSW, down 1.2 per cent, Queensland, down 1 per cent, and the ACT and Victoria, which recorded losses of 0.6-0.7 per cent.

ABS head of labour statistics Bjorn Jervis said: “These four states and territories had lockdowns for either all or part of the first half of August, in addition to existing restrictions and border closures across the country.”

Payroll jobs rebounded by 1.5 per cent in South Australia as the state exited a short period of restrictions – a sign that employment can quickly recover after lockdowns end, economists said.

The July labour force statistics – which showed unemployment dropped sharply to 4.6 per cent – largely missed the full impact on unemployment from the Greater Sydney lockdown, and also reflected a large drop in the participation rate as many dropped out of the workforce.

CBA expects next Thursday’s official figures will show employment plunged by 300,000 in Aug­ust, reflecting the Greater Sydney lockdown, which would wipe out all the employment gains made this year and drive the official jobless measure up to 5.2 per cent.

Originally published as Lockdown hits 1-in-10 Sydney jobs, latest payroll figures reveal