Fall in payroll jobs continues into August: Australia

Payroll jobs fell 0.8 per cent in the month to 13 August 2022, following a 0.6 per cent fall in the month to 16 July 2022, according to figures released today by the Australian Bureau of Statistics (ABS).

Lauren Ford, head of labour statistics at the ABS, said: "Payroll jobs continued to fall into August, down from the recent peak at the end of June.

"The slightly lower number of payroll jobs continued to reflect the ongoing impacts of short-term employee absences from COVID-19 and other illnesses during winter, within a tight labour market."

Payroll jobs can show slower growth and larger short-term changes than Labour Force statistics on employment, given employees without paid leave entitlements may be away from work for a short period without losing their job, particularly during holiday periods or when they are sick. It is also difficult to interpret changes in payroll jobs and wages around the end of the financial year, because employers' reporting patters change around this time.

Changes over time

The recent employee absences continue a series of pandemic-related disruptions in the labour market during the second half of winter, making it difficult to compare across years.

"In 2022, there were high numbers of employee absences during winter from COVID-19 and other illnesses. This time last year the data reflected the emergence of the COVID-19 Delta variant, while in 2020 the labour market was still recovering from the initial pandemic outbreak with second wave impacts in Victoria," Ms Ford said.

Week 1 represents the week ending 4 January 2020, 2 January 2021 and 1 January 2022. Week 32 represents the week ending 15 August 2020, 14 August 2021 and 13 August 2022.

The recent employee absences continue a series of pandemic-related disruptions in the labour market during the second half of winter, making it difficult to compare across years.

"In 2022, there were high numbers of employee absences during winter from COVID-19 and other illnesses. This time last year the data reflected the emergence of the COVID-19 Delta variant, while in 2020 the labour market was still recovering from the initial pandemic outbreak with second wave impacts in Victoria," Ms Ford said.

Indexed to the week ending 14 March 2020.

States and territories

"Payroll jobs fell in most states and territories in the month to mid-August 2022, with the largest falls in Victoria and New South Wales (both down 1.0 per cent)," Ms Ford said.

Western Australia and the Northern Territory were the only jurisdictions without a fall in payroll jobs over the month (both unchanged at 0.0 per cent), which was largely due to rises in the Education and training industry (as school resumed) offsetting payroll job falls in other industries.

Industries

In the month to mid-August 2022, payroll jobs fell in all industries except for Education and training, which rose 2.3 per cent.

The industries with the largest share of the fall in payroll jobs were Construction and Professional, scientific and technical services which held an 18.2 per cent and 11.6 per cent share of payroll jobs losses in the month to mid-August 2022.

Payroll job losses exclude the Education and training industry, as jobs increased in the month to mid-August 2022.

This is the fiftieth release of Weekly Payroll Jobs and Wages in Australia since its first release in April 2020.

The ABS acknowledges the continued support of the Australian Taxation Office in enabling the ABS to produce weekly insights into the Australian labour market from Single Touch Payroll data.