Labour force figures released last week show there were 13,040,400 Australians in work in April 2021, with the level of employment now 45,900 (or 0.4 per cent) above its pre-COVID level in March 2020 and 902,500 (or 7.4 per cent) higher than the trough in the labour market recorded in May 2020.
Full-time employment rose by 33,800 (or 0.4 per cent) over the month, to a record high of 8,889,500 in April 2021, and is now 24,600 (or 0.3 per cent) above the level recorded in March 2020. Part-time employment remains 21,300 (or 0.5 per cent) above the level recorded in March 2020.
The underemployment rate decreased by 0.2 percentage points over the month, to 7.8 per cent in April 2021, the lowest rate recorded since May 2014. The level of unemployment in Australia fell by 33,600 (or 4.3 per cent) over the month, to 756,200 in April 2021, but remains 32,600 (or 4.5 per cent) higher than it was in March 2020.
The unemployment rate also decreased over the month, by 0.2 percentage points, to 5.5 per cent, but is still above the 5.3 per cent recorded in March 2020.
Labour market conditions improved for youth over the month, with the level of employment for the cohort increasing by 15,900 in April 2021, with all of the increase due to a rise in full-time jobs for 15-24 year olds (up by 23,600).
“While Australia’s labour market recovery following the pandemic has beaten even the most optimistic of expectations, the Government remains acutely aware that more than 700,000 Australians remain out of work. This is why the Government has provided unprecedented direct economic support, totalling $291 billion, which has helped keep businesses afloat, saved an estimated 700,000 jobs through JobKeeper and has put Australia back on the road to recovery,” Minister for Employment, Workforce, Skills, Small and Family Business, Stuart Robert said.
Bjorn Jarvis, head of labour statistics at the ABS, said this was the sixth consecutive fall in the unemployment rate, down from 6.9 per cent in October 2020.
“The unemployment rate is now 0.2 percentage points (or 33,000 people) above the start of the pandemic. Importantly, it’s 2.0 percentage points below its peak in July 2020, when it was 7.4 per cent,” Mr Jarvis said.
“The youth unemployment rate fell to its lowest level since the Global Financial Crisis, reflecting a strong increase in employment for young men, following a number of increases for young women in recent months.”
A year of continuous growth in job advertisements
The detailed release of the Internet Vacancy Index (IVI) shows 243,500 online job advertisements were newly lodged in April 2021, representing the 12th consecutive month of growth in recruitment activity.
The IVI increased by 3.3% or 7,800 job advertisements over the month to stand, for the second month in a row, at its highest level in over 12 years (since October 2008).
The Vacancy Report for April 2021, shows job advertisements exceed pre-COVID-19 levels across all 48 detailed occupational groups.
Key points
- Job advertisements increased across all eight broad occupational groups as well as all skill level groups during April 2021.
- Recruitment activity for Community and Personal Service Workers reached an all-time series high (highest level since the beginning of the IVI series in January 2006) of 26,900 jobs advertised in April 2021.
- Job advertisement growth in the month of April was concentrated in New South Wales and Victoria, with a small increase in Tasmania. All other states and territories recorded falls in recruitment activity.
- In three month moving average terms, job advertisements increased in all 37 IVI regions over the year to April 2021. While the bulk of recruitment activity (74.1%) remains concentrated in capital cities, the strongest growth over the year was observed in regional areas.
- Recruitment activity has increased significantly compared with levels observed prior to the COVID-19 downturn. Job advertisements are up 44.8% or 75,300 compared with pre-COVID-19 levels.
Wages rose 0.6% in the March quarter 2021
The seasonally adjusted Wage Price Index (WPI) rose 0.6 per cent in March quarter 2021 with the annual growth rate at 1.5 per cent, according to figures released last week by the ABS.
“After two quarters of minimal growth, wages rose 0.6% for the second successive quarter. This quarter saw a return to regular patterns of wage growth for the time of the year, supplemented to some extent by pay rises for the final group of award workers scheduled in the Fair Work Commission’s annual wage review (2019-2020),” Michelle Marquardt, Head of Prices Statistics at the ABS said.
“March quarter 2021’s moderate growth was influenced by regularly scheduled increases. Improved business conditions saw employers revisit wage reviews postponed during the height of the pandemic. The phased approach to the delivery of award increases saw jobs in the accommodation and food services, retail trade, arts and recreation, aviation and tourism industries receive rises previously recorded in September quarters.”
Across the country, Tasmania recorded the highest quarterly (0.8 per cent) and annual rate rise (2.0 per cent), while the Australian Capital Territory recorded the lowest annual growth (1.3 per cent) based mainly on the slowing rate of public sector wage growth.
