While the unemployed are giving up looking for a job in Australia, there is new evidence that the blockade has reduced working hours.
Australia’s unemployment fell again last month, but it reflects a sharp drop in labor force participation, primarily due to a long-term blockade in New South Wales, rather than a strengthening of the workforce.
The unemployment rate in August fell from 4.6% in the previous month to 4.5%, and the participation rate fell 0.8 points to 65.2%.
This shows that many Australians are dropping out of the job market, following a 0.2 percentage point drop in participation in July.
Working hours fell 3.7% in August, well above the 1.1% employment decline.
According to the Australian Bureau of Statistics, this figure highlights the extent to which people who have experienced new or ongoing blockages save time or are unemployed, without necessarily losing their jobs.
Bjorn Jarvis, director of ABS Labor Statistics, said the relatively large decline in unemployment accounted for about 13 percent of the 168,000 decline in the total workforce.
“The decline in unemployment reflects a significant decline in participation during the recent blockade, not a strengthening of labor market conditions,” Jarvis said.
“Through the pandemic, participation during the blockade has dropped significantly. This pattern has been repeated over the past few months.
“We’ve seen unemployed people drop out of the workforce, not only because people lose their jobs, but also because of how difficult it is to actively seek and get a job during a lockdown.”
Working hours in New South Wales, which was hit by the mascot, fell by 13% between June and August, and fell by 7% last month alone.
Not surprisingly, other jurisdictions hit by the blockage also recorded a significant reduction in working hours in August, down 3.4% in Victoria, 5.3% in Queensland and 2.5% in ACT.
“There are always employers who work temporarily or overtime in certain months, but the current wave of blockages makes this more common,” said Jarvis.
“Compared to August 2019, August 2021 added 1.2 million employees who reduced their working hours for financial and other reasons, including for these reasons. Includes 532,000 people who worked without working hours. “
ABS monthly work numbers show that the blockade has significantly reduced working hours and the unemployed are giving up
Source link ABS monthly work numbers show that the blockade has significantly reduced working hours and the unemployed are giving up