Unemployment falls for 3rd consecutive month

New data has shown unemployment figures dropped again in the month of April, with full-time employment hitting another record high.

According to the latest Roy Morgan employment series data, in April, unemployment dropped 0.9 percentage points to 8.5 per cent. This represents the third straight monthly drop and means unemployment is now at its lowest since September 2022.

Full-time employment increased by 68,000 to a new record high of 9,058,000, while part-time employment also increased — up 172,000 to 4,756,000. This, again, means both full-time and part-time employment increased for the third consecutive month in April, which Roy Morgan noted was the first time it’s happened in the employment series.

Michele Levine, chief executive at Roy Morgan, said the spike could be put down to increased immigration.

“The spike higher in unemployment and under-employment late in 2022 as immigration into Australia began to surge is being worked through in recent months as workers find new jobs and employment levels rapidly increase across the economy,” she explained.

“In April, total jobs hit a record high above 13.8 million, driven by a surge in both full-time and part-time employment. Part-time employment increased by over 170,000 in April to almost 4.8 million, and full-time employment increased by almost 70,000 to a new record above 9 million for the first time.

“A comparison of the employment market to a year ago as Australia was still battling COVID-19 provides an even starker comparison. Since April 2022, over 660,000 new jobs have been created, a faster rate of growth than either the workforce (+538,000) or even the Australian population (+587,000).

“The growth in jobs has been evenly split with full-time employment increasing by around 350,000 and part-time employment up by around 310,000 compared to April 2022. This rapid increase in employment has come despite the Reserve Bank raising interest rates for a record 10 consecutive meetings between May 2022 and March 2023, and now again in May 2023.”

Ms Levine noted the aftermath of the budget is set to create even more jobs.

“Another key factor is the surging employment markets which have increased income tax receipts and reduced welfare payments at the same time. The expected budget surplus allows the federal government some room to manoeuvre to increase targeted relief to low-income earners – including jobseekers,” she said.

“The expected increase to the jobseeker payment for unemployed Australians is welcome news for those on the payment even as the ‘LMITO’ (low and middle income-earner tax offset) is being wound back. The LMITO gave those earning less than $126,000 a year a rebate of up to $1,500 on their income tax since being introduced in 2018 by then treasurer Scott Morrison.

“The balancing act of increasing payments in one area while reducing tax breaks in another is an attempt by the Albanese government to provide targeted relief without fuelling inflationary pressures. Although inflation appears to have peaked in the closing months of 2022, the RBA is still on the lookout for any signs of further increases as demonstrated by their unexpected increase to interest rates in May.”

Ms Levine said the Australian economy is “finely balanced at the moment”, with “a surge in employment accompanied by high, but falling, inflation, and interest rates still rising as they work their way through the economy”.

“Looking forward, Australians will be hoping the federal government and the RBA are able to ensure the economy continues to grow despite these pressures and the employment markets continue to show the strength they have shown over the last year with rapidly rising full-time and part-time employment,” she concluded.