Australia has received the “heartbreaking” news that almost 600,000 workers had lost their job in just one month, news.com.au reports.
But at the same time, the unemployment rate had only jumped by 104,500, taking it to 6.2 per cent, compared to the previous month’s 5.2 per cent.
On the surface, that mere one per cent difference doesn’t seem too disastrous.
But the reality of our current jobs market is far more complicated – and far more worrying.
According to the Australian Bureau of Statistics, seasonally adjusted employment fell by 594,300 people between March and April.
That equates to about 19,810 jobs lost each day during that period.
Unemployment increased by 104,500 people to 823,300, the unemployment rate increased by 1 percentage point from 5.2 per cent to 6.2 per cent and total hours worked fell by around 9.2 per cent between March and April.
The ABS explained that the comparatively small jump in unemployment – even as almost 600,000 jobs were lost – was the result of a drop in people actively looking for employment.
“The large drop in employment did not translate into a similar-sized rise in the number of unemployed people because around 489,800 people left the labour force,” stated Bjorn Jarvis, head of labour statistics at the ABS.
The spike in people leaving the labour force also meant the participation rate plummeted by 2.4 percentage points to 63.5 per cent.
Given the widespread government restrictions that have forced businesses to close, it is believed many out of work Aussies have hit pause when it comes to trying to find a new job, as there’s simply no point at the moment.
EY Chief Economist Jo Masters said the situation was likely to “get worse before it gets better”, despite the easing of restrictions.
FULL STORY
JobKeeper: Unemployment rates rise, what true figures mean for future (news.com.au)
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