Thank immigration collapse for 48-year low unemployment

Yesterday, the Australian Bureau of Statistics (ABS) released labour market data for April, which revealed that Australia’s unemployment rate (3.9%) fell to its lowest level since August 1974, whereas the underemployment rate (6.1%) fell to a fresh 14-year low:

While stimulus prevented the economy from sliding into a deep recession, it has merely filled the hole left by COVID lockdowns/restrictions and has failed to put the jobs market on a higher trajectory. This is illustrated clearly by the fact that employment growth is tracking below the pre-COVID trend:

However, full-time jobs are booming, up 5.3% over the pandemic versus a 1.7% fall in part-time jobs:

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.