Hidden’ jobless take rate above 6.3pc and rising
The Australian
July 05, 2014
LABOUR-market analysts have warned of a huge rise in “hidden” unemployment, with new research showing men are the big losers in the job stakes in a rapidly changing economy.
A study by former ALP senator John Black’s research group Australian Development Strategies estimates that, in the past, between 60,000 and 75,000 men joined the hidden unemployed, representing about 1 per cent of the male workforce or 0.5 per cent of the total workforce.
In an article in The Weekend Australian, Mr Black writes that had these figures been taken into account they would have pushed the unemployment rate to 6.3 per cent for the end of May.
“At the moment, the blokes are living off the wives,” Mr Black said yesterday. Women had taken a disproportionate share of jobs in growth industries, such as real estate and the federal public service, which had expanded under Labor.
But Mr Black said these public-service jobs were also now contracting as the Coalition tightened federal spending, while reduced industry protection would result in more losses in manufacturing and other blue-collar industries.
The conclusion was supported by University of Newcastle labour-market economist Bill Mitchell, who told The Weekend Australian that, in the past four years since the easing of the global financial crisis, 220,000 hidden unemployed had joined the jobless ranks.
If they were included in the official unemployment statistics, the headline unemployment rate would be 7.6 per cent, he said.
In addition, underemployment had risen. “I think the official unemployment rate is going to rise and if you add in the hidden unemployment and underemployment you come to 13.7 per cent in total, and that is going to rise to 14.5 per cent, no worries,” Professor Mitchell said.
Many economists think that the official labour-market survey conducted by the Australian Bureau of Statistics according to an international measure produces a very restricted unemployment figure because it includes only those who say they actively looked for work in the past week.
The hidden unemployed, who do not show up in the ABS figures, include those seeking work, but who had not actively done so in the particular week the ABS surveyed them, those who had only just lost their jobs and were yet to seriously look for new ones, and those who wanted a job but had given up trying because of repeated knock-backs.
The Roy Morgan Research Centre has just released its June employment survey, which found an estimated 1.326 million Australians or 10.6 per cent of the workforce were unemployed, up 0.9 per cent from the previous month and 0.9 per cent on the corresponding period last year.
The survey simply asks people if they are unemployed and, in a general sense, want to work.
“Analysing long-term trends shows Australian unemployment has risen in June in each of the last four years,” the centre said.
Among those with jobs, 1.188 million — 9.5 per cent of the workforce — were underemployed, working part-time and seeking more work, the survey found. This was the highest the Morgan survey has recorded, up 1.4 per cent from a month ago and up 0.3 per cent compared with the corresponding period last year.