Labor Market Trends (5).docx

businesses. Due to government actions and economic stimuli, the labor market recovered rapidly from the covid-19 restrictions. As skilled emigrants were barred from entering the country to fill vacancies, labor market shortages precipitated a sharp decline in unemployment. Unemployment dropped from...

businesses. Due to government actions and economic stimuli, the labor market recovered rapidly from the covid-19 restrictions. As skilled emigrants were barred from entering the country to fill vacancies, labor market shortages precipitated a sharp decline in unemployment. Unemployment dropped from 7.48% in July 2020 to 4.65% July 2021 according to the ABS. Many migrants left Australia due to shutdowns and lack of work, migrants were excluded from government financial support during this period. “In the data released on Friday, 17 December, it was revealed that Australia recorded a net loss of 88,800 people in 2020-21 due to the impact of COVID on overseas migration.” The departure of migrants has led to a skills shortage in Australia with many employers unable to fill vacancies. While many who had previously struggled to obtain employment prior to covid have now become now employed. While Australia's underemployment rate is currently low as seen in table 4, the amount of hours worked has increased, “Hours in New South Wales and Queensland increased in April following the impacts of the floods in March. The number of people working fewer hours than usual due to bad weather dropped from its March peak of over 500,000 to around 70,000 people in April.” From July of 2021 to February of 2022, the rate of underemployment has dropped from 9.088% to 6.422% while the average amount of hours worked has risen from 94.1 in January of 2022 to 103.6. While underemployment is still a persistent problem in the labor market, the rapid rebound has shown Australia's economy to be strong. Table 4 The war in Ukraine has impacted an already broken supply chain. Pushing up inflation and the cost of living. High energy prices, shortages of supplies and the RBA policy of interest rate increases to curb inflation will more than likely push the unemployment rate back up as consumer demand drops.l Birch, E. and Preston, A. (2021). The Australian labour market in 2020. Journal of Industrial Relations, p.002218562110022. doi:10.1177/00221856211002224. www.nationalskillscommission.gov.au. (n.d.). 1.1 Impact of COVID-19 on the Australian labour market | National Skills Commission. [online] Available at: https://www.nationalskillscommission.gov.au/reports/shape-australias-post-covid-19-workforce/part-1-labour-market-update/11-impact-covid-19-australian-labour-market. ‌ www.ceicdata.com. (n.d.). Australia | Underemployment Rate | Economic Indicators. [online] Available at: www.nationalskillscommission.gov.au. (n.d.). 1.4 Industry employment through 2020 | National Skills Commission. [online] Available at: https://www.nationalskillscommission.gov.au/reports/shape-australias-post-covid-19-workforce/part-1-labour-market-update/14-industry-employment-through-2020 [Accessed 10 Jun. 2022]. ‌ Australian Institute of Health and Welfare (2021). Employment and unemployment. [online] Australian Institute of Health and Welfare. Available at: https://www.aihw.gov.au/reports/australias-welfare/employment-unemployment. ‌ Fahrer, J. and Pease, A. (1993). The Unemployment-Vacancy Relationship in Australia. The Australian Economic Review, [online] 26(4), pp.43–57. doi:10.1111/j.1467-8462.1993.tb00810.x. www.abs.gov.au. (2022). Unemployment rate at 3.9% | Australian Bureau of Statistics. [online] Available at: https://www.abs.gov.au/media-centre/media-releases/unemployment-rate-39. ‌ www.nationalskillscommission.gov.au. (n.d.). 1.1 Impact of COVID-19 on the Australian labour market | National Skills Commission. [online] Available at: https://www.nationalskillscommission.gov.au/reports/shape-australias-post-covid-19-workforce/part-1-labour-market-update/11-impact-covid-19-australian-labour-market. ‌ ‌ ‌ ‌ \