UNEMPLOYMENT RATE ONLY HALF THE STORY
MEDIA RELEASE - The HR Nicholls Society
16 January 2014
The small increase in the unemployment rate in December (up 0.1 percentage point to 5.8 per cent seas adj) understates the continued deterioration in the labour market. That employment fell by over 22,000 (sa) is of serious concern.
The deterioration is reflected in the proportion of those of working age who are employed. Since December 2010 the proportion employed has dropped from 63.2 percent to 61.8 per cent. This means that over the three years about 345,000 people of working age have ceased to be employed and have either become unemployed or dropped out of the workforce altogether. In fact, as the number unemployed has increased by 133,000 the remaining 212,000 are drop outs.
That period covers the effective introduction of the Fair Work legislation and administration. The regulations applied under this system (sic) have hardly given these erstwhile workers a fair go.
Over the Christmas period many commentators have emphasised the need for early action to effect a major reduction in the regulation of employer/employee relations. The main beneficiaries of the regulations are trade union leaders.
It is absurd that no substantive reform by the Abbott government is envisaged until 2017-18. The ABBC and other minor reforms are welcome but will not change the behaviour of militant unions.
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