Stay-at-home Melbourne clouds encouraging employment numbers

“The healthy rebound in the numbers of people in employment or actively looking for work in June is an encouraging sign that the economy is ready to stage a strong recovery as restrictions are lifted. Undoubtedly, the surge in infections in Victoria, the reimposition of tight restrictions covering around 20 per cent of the national economy and the extension of internal barriers, none of which are reflected in today’s numbers, will slow the pace of recovery in July and August,” Innes Willox, Chief Executive of the national employer association Ai Group, said today.

“The further rise in the unemployment rate to 7.4 per cent occurred despite the largest recorded monthly increase in the number of jobs in the economy as participation in the labour force increased by more than the number of new jobs.

“The recovery, while healthy, still leaves us well behind after the extraordinarily severe deterioration of the labour market in April and May.

“The impacts of the downturn are particularly harsh on young people. The unemployment rate of 16.4 per cent among 15-24 year olds is well above twice the rate for the population as a whole. This further highlights the importance of the training initiatives put forward today by the Federal Government and reinforces the need to work for a strong and sustainable recovery in the months ahead.

“Today’s data will weigh heavily on the Government as it considers the future of support measures such as JobKeeper,” Mr Willox said.

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