Another 138,000 jobs were lost in September as lockdowns in New South Wales and Victoria drove the participation rate to a 15-month low.
Unemployment rose from 4.5 per cent to 4.6 per cent, which is meaningless as that could easily be error, yet the media reports these figures as if they were gospel.
That partly explains why resume writers and employment service operators are going through booms and busts.
The ABS methodology is a blunt and antiquated instrument when it comes to measuring unemployment. In real terms, it’s closer to 11 per cent.
The labour markets of New South Wales and Victoria — with a combined share of close to 60 per cent of Australia’s employed population — had a huge influence on the national figures.
Last month there were large falls in employment in Victoria (123,000 people) and NSW (25,000 people, following a significant 173,000 decline in August).
In South Australia, the under employment rate increased to 8.4 per cent in September. In real terms, it’s closer to 14 per cent.
SA’s youth unemployment jumped from 9.2 per cent in August to 11 per cent. In real terms, its more like a 4-5 per cent jump.
The extent of the economic damage from NSW failing to contain its COVID-19 outbreak in June is clear.
Over the last three months, participation in the labour force fell by 333,000 people, with employment dropping by 281,000 people.
There are now 111,000 fewer people employed than before the first COVID lockdowns in March 2020.