Another win in Albo’s unprecedented war on youth today.
Westpac notes that some labor market indicators softened in May, matching falling hours worked:
As in April, the underemployment rate, which measures the share of employed workers wanting and able to work more hours, was 6.7% in May.
The aggregate outcome hides cohort-specific tendencies.
Disproportionally represented in non-essential or discretionary sectors like tourism, retail, accommodation, retail, travel, and other recreational services and more flexible workers have seen a larger increase in underemployment than the economy-wide average.
The female underemployment rate rose from 7.5% in March to 8.2% in May 2024, the highest since November 2021.
Young Australians’ underemployment rate rose from 14.8% in March to 15.7% in May, approaching 17% before COVID.
After an upward revision in April, the underutilisation rate, which includes unemployment and underemployment, stayed at 10.7% in May. It was the highest rate since January.
The underutilisation rate has increased trend-wise alongside underemployment.
Underemployment is the most correlated factor with wage growth.
