Money Australian unemployment is increasing

13:32  17 may  2018
13:32  17 may  2018 Source:   businessinsider.com.au

Comment: Australia's economy will come back to 'haunt' Scott Morrison's optimistic budget projections

  Comment: Australia's economy will come back to 'haunt' Scott Morrison's optimistic budget projections Australia's budget position is the best it's been in the post-GFC era, helped by stronger commodity prices and employment growth over the past year. It has allowed treasurer Scott Morrison to cut income taxes and project a return to a budget surplus one year ahead of schedule, an outcome that few would have expected just 12 months ago.However, as any forecaster knows, it's always dangerous to extrapolate near-term movements over a longer time horizon.

In Australia , the unemployment rate measures the number of people actively looking for a job as a percentage of the labour force. It is the highest jobless rate since last July, as the economy added 22,600 jobs while the number of unemployed increased by 10,600.

The key driver of poverty in Australia is unemployment . Unemployment rate is one of the economic indicators of the level to which Australian economy is operating to its full capacity. The unemployment rate of Australia started increasing since World War I and II.

a group of people in a field© Provided by Business Insider Inc

Australia’s unemployment rose in April as the size of the labour force increased faster than employment.

According to the Australian Bureau of Statistics (ABS), employment grew by 22,600 in seasonally adjusted terms, coming in marginally ahead of forecasts for an increase of 20,000.

Full-time employment increased 32,700 to 8,543,400, reversing a similar decline recorded a month earlier. Part-time employment fell by 10,000 to 3,957,700, again the complete opposite to what was seen in March.

With full-time employment lifting strongly, total hours worked increased by a hefty 19.4 million hours, or 1.11%, to 1.764 billion hours.

The RBA doesn't sound very confident about the outlook for Australian wages

  The RBA doesn't sound very confident about the outlook for Australian wages RBA banking on wage growth to boost economic growth and lift inflationary pressures. Not confident it will pick up by any meaningful amount in the period ahead.That was clear to see in a speech delivered today by RBA deputy governor Guy Debelle, in which he all but admitted the risks for the bank's wage growth outlook are currently to the downside.

An important component of increased unemployment in Western Europe since the early 1970s has been a lengthening of unemployment duration. 353. Australian unemployment protection: challenges and new directions.

The Unemployment Rate measures the percentage of the total work force that is unemployed and actively seeking employment during the previous month. Source: Australian Bureau of Statistic Australia Unemployment Rate.

The largest increase in employment was seen in New South Wales, increasing by 27,100. That was followed by Western Australia, up 8,300, and South Australia at 2,700 persons.

In contrast, the largest declines were reported in Victoria and Queensland where employment fell by 10,000 and 8,200 respectively.

ASX drops on NAB and Telstra losses

  ASX drops on NAB and Telstra losses The Australian sharemarket closed lower on Tuesday as Telstra hit a seven-year low and NAB traded ex-dividend.The S&P/ASX 200 index closed 37.5 points, or 0.6 per cent, lower at 6097.8 as index heavyweights Telstra and NAB recorded losses.

While more Australians than ever before are currently in employment, something that is undoubtedly good news, particularly given the growth in the size of the labour force, the continued increase in unemployment reinforces the view that both wage and inflationary pressures are likely to remain

Still, unemployment in Australia has been a consistent problem for the Australian economy. With changes in the production patterns in Australia , there was loss of jobs in Australia which lead to lower job opportunities in the country. This increased unemployment in Australia .

Total employment stood at 12,501,000, representing 61.9% of Australia's total working age population. The latter was unchanged from the level reported a month earlier.

Slightly offsetting the April jobs beat, employment in March, originally reported as a gain of 4,900, was revised down to show a decline of 700.

Over the year, full-time employment rose by 265,200, outpacing a 66,900 increase in part-time workers. Combined, total employment increased by a 332,100 from April 2017.

a screenshot of a cell phone© Provided by Business Insider Inc Despite the solid increase in employment last month, the unemployment rate rose to 5.6%, up from 5.5% in March.

Total unemployment increased by 10,600 to 741,000 as the size of Australia's labour force -- capturing those already employed or who are actively looking for work -- increase by a massive 33,200 people.

Reflecting that boost, the labour force participation rate rose 0.1 percentage point to 65.6%, above the 65.5% level expected.

By state and territory, unemployment rose in Queensland and South Australia but fell in Western Australia and Tasmania. Despite the divergence in hiring seen during the month, unemployment in New South Wales and Victoria -- Australia's most populous states -- held steady at 5% and 5.3% respectively.

This lead indicator on Australian home prices points to further declines ahead .
Australian capital city home prices have been falling for six months , seeing annual growth turn negative for the first time since 2012.This indicator from Morgan Stanley suggests there'll not only be further price weakness in the months ahead, but also the likelihood of renewed softening in building approvals. It says these two factors will likely weigh on household consumption and building activity, seeing Australian economic growth decelerate, rather than accelerate, this year.It's Morgan Stanley’s Australian housing model, known as MSHAUS for short.

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