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Summary
- The total job advertisements surged 9.2 per cent in December, implying a robust employment scenario in 2021.
- According to the job advertisement data from Australia and New Zealand Banking Group, the job advertisements were 5 per cent higher at 159,156 in December 2020 compared to the corresponding month of the year ago period.
- However, experts warn that the new coronavirus cases reported from Victoria and New South Wales (NSW) may negatively impact the economic recovery.
With job advertisements hitting an 18-month high in December, the economy is expected to see a sustained recovery in employment going ahead. According to the job advertisement data from Australia and New Zealand Banking Group released on Tuesday, 5 January 2020, the total job advertisements surged 9.2 per cent in the month of December, implying a robust employment scenario in 2021.
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The Australian economy saw steep cuts in jobs at the peak of COVID-19 pandemic in 2020. The job advertisements were 5 per cent higher at 159,156 in December 2020 compared to the corresponding month of the year ago period, according to the data. In April, the advertisements dipped to 64,82861, a 61 per cent decline compared to the year earlier.
Labour data raise hopes
The recent fall in the unemployment rate indicates that jobs are returning as the economy steadily improves. Between October and November, the seasonally adjusted employment surged by 90,000 people, as per the labour data released by the Australian Bureau of Statistics (ABS) on 17 December 2020. The hours worked rose by 2.5 per cent. The unemployment rate fell from July’s peak of 7.4 per cent to 6.8 per cent in November.
New COVID-19 cases may hamper growth
The coronavirus-induced lockdowns pushed a large number of people out of the labour force between March and May last year. The participation rate also plummeted 3.3 percentage points over the two months. However, with the employment scenario showing steady improvement, things are only expected to get better.
According to Bjorn Jarvis, head of labour statistics at the ABS, the number of employed people has dipped by 138,000 and 226,000 more have become unemployed since March, even as the labour participation rate has improved. It shows that there is room for further improvement provided no more lockdowns are in the offing.
Image Source: ABS update, 17 December 2020
However, the new cases of coronavirus reported from Victoria and New South Wales (NSW) may negatively impact the economic recovery. In case of restrictions getting tightened further, the scenario could become challenging, according to experts.
READ MORE: COVID-19 impact: Weekly payroll jobs fall, accommodation and food services worst hit
Victoria is one of the major states responsible for the majority of the increase in employment in November. Employment in the state saw a surge of 74,000 people in November. In October, an increase of 82,000 people was seen amid easing coronavirus restrictions and re-opening of businesses. The hours worked rose by 5.2 per cent after an increase of 5.6 per cent in October. However, new coronavirus cases may deal a blow to improving expectations.
Image Source: ABS update, 17 December 2020
Businesses should take charge
Deespite having drawn flak for phasing out the JobKeeper wage subsidy and JobSeeker unemployment benefit by March-end, Prime Minister Scott Morrison on Tuesday said that it’s time for businesses to take charge once again and drive the economy. The emergency support in the form of JobKeeper wage subsidy should end, Morrison also said that over 450,000 businesses and two million Australians had moved away from JobKeeper after September.
In the third quarter, Australia’s economy grew by 3.3 per cent after falling into recession in nearly thirty years, recovering from COVID-19 pandemic-related shocks.
READ MORE: COVID-19 blues hit Coca Cola, thousands to lose jobs
