Unemployment rose by 33,900 in September, and the number of those employed rose by 14,900, with the size of the labour force growing by 48,800 people but the real story is the number of people under-utilised.
In trend terms, ABS defined unemployment remained steady at 4.3 per cent.
Yet after adding another 14,900 people in September, employment has increased by just 116,000 people over the first nine months of the year. That compares to a gain of 323,000 people over the same period last year.
The participation rate, which measures the proportion of the working-age population either employed or actively seeking work, has dipped which may show pessimism among job seekers, reinforced by recent lay-offs in sectors like banking, mining, and education.
Using a different methodology, Roy Morgan reckons unemployment and under-employment combined dropped 280,000 to 3,238,000 (20.1% of the workforce, down 1.9%).
Although labour under-utilisation remains stuck above 3.2 million for a fourth straight month and has averaged a high 3.3 million so far this year.
If you’re wondering why customers aren’t spending, look closely at the 3.2 million people under-utilised in the labour market.
Consumer confidence has slumped to a 12-month low in the lead-up to Christmas, with mortgage holders reacting poorly to the possibility of interest rates being held until the end of the year.
Since the RBA began increasing rates in September 2022, 174,000 more people have become unemployed. There are now two people unemployed for every job vacancy.
ACOSS states the greatest risk to the economy now is not a resurgence in inflation but the further loss of jobs and incomes.
“Urgent rate cuts are essential to support job creation and prevent further rises in unemployment,” said CEO Cassandra Goldie.
“The government must step up with targeted support for those doing it toughest, including by increasing social security payments such as JobSeeker and Youth Allowance, and fixing the punitive employment services system,” Dr Goldie said.
“We also need increased investment in social housing and energy efficiency programs to bring down energy bills.”