Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Australia sees more jobs lost to lockdowns, but recovery beckons

Economic IndicatorsOct 13, 2021 09:31PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Customers at a local cafe are seen through a window displaying a job vacancy notice in central Sydney, Australia, May 9, 2016. Picture taken May 9, 2016. REUTERS/Steven Saphore/Files

By Wayne Cole

SYDNEY (Reuters) -Australian employment fell sharply for a second month in September as coronavirus lockdowns forced firms to lay off workers, while the jobless rate was held down by another big drop in the number of people looking for work.

Policy makers are counting on a recovery in coming months as rapid progress in vaccinations has allowed restrictions to ease in Sydney, with Melbourne and Canberra soon to follow.

Relief was sorely needed with Thursday's data from the Australian Bureau of Statistics (ABS) showing employment fell by 138,000 in September, on top of a 146,100 drop in August.

The jobless rate edged up to 4.6%, from 4.5%, but has been artificially held down by the restrictions which prevent people looking for work and being counted as unemployed.

"The low national unemployment rate continues to reflect reduced participation during the recent lockdowns, rather than strong labour market conditions," said Bjorn Jarvis, head of labour statistics at the ABS.

The participation rate fell 0.7 percentage point in September to 64.5%, a long way from a record high of 66.2% hit in June. As this shift unwinds, the unemployment rate could well rise in the next few months even as employment recovers.

The Reserve Bank of Australia (RBA) has cautioned that unemployment will likely top 5% by year end, though it is optimistic activity will pick up quickly as the lockdowns ease.

The central bank still believes the jobless rate will need to get down to 4% or lower to drive a sustained, and much needed, lift in wages and inflation.

Speaking on Thursday, RBA Deputy Governor Guy Debelle noted that while the labour market had enjoyed a strong recovery ahead of the lockdowns, wages remained stubbornly subdued with very few workers getting annual rises over 2%.

The RBA has long argued pay growth above 3% was needed to get inflation into its 2-3% target band, after years of undershooting.

Debelle said the lack of a pick up in wages and inflation meant Australia did not have to follow some other developed nations in paring back policy stimulus.

Markets have recently started to wager the RBA might hike interest rates late next year, while the bank itself continues to say a move is unlikely until 2024.

Australia sees more jobs lost to lockdowns, but recovery beckons
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (5)
Eudon Hickey
Eudon Hickey Oct 14, 2021 12:30AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Not a single politician missed a pay check or lost their jobs
Co Gonz
Co Gonz Oct 13, 2021 11:48PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
no way- what economists would've thought- are politicians ignoring their advice to create stupid policies?
Bill Ackman
Bill Ackman Oct 13, 2021 10:07PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Aus should be locked down for the next 3 years
Felipe Daniel
Felipe Daniel Oct 13, 2021 9:53PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Australia is currently communist state
Steve Siew
Steve Siew Oct 13, 2021 9:37PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Deflation all the way
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email