The Australian Bureau of Statistics (ABS) today released an ugly labour force report for April, with employment decreasing by 18,600, the unemployment rate rising by 0.2% to 4.5%, despite the participation rate falling by 0.1%:
Table by Alex Joiner (IFM Investors)
As illustrated below by Justin Fabo from Antipodean Macro, the rise in unemployment was well above the Reserve Bank’s forecast in the May Statement of Monetary Policy:
Younger Australians copped it especially hard, with youth unemployment rising to over 11%:
Chart from Alex Joiner (IFM Investors)
Victoria also continues to lead the mainland, with an unemployment rate of 4.8% (Tasmania at 5.0%):
Chart from Alex Joiner (IFM Investors)
The unemployment situation is bound to worsen given the Reserve Bank’s monetary tightening, the housing downturn, the fallout from the global energy shock, and the strong growth in labour supply from ongoing mass migration:
Chart from Alex Joiner (IFM Investors)
Falling labour demand and rising labour supply mean one thing: rising unemployment.
