AdviserVoiceJob losses, longer hours; but better times ahead https://www.adviservoice.com.au/2013/09/job-losses-longer-hours-but-better-times-ahead/ Financial planner information & financial planner education/CPD - AdviserVoice Wed, 03 Jun 2026 21:30:15 +0000 en-US hourly 1 https://wordpress.org/?v=7.0 Job losses, longer hours; but better times ahead https://www.adviservoice.com.au/2013/09/job-losses-longer-hours-but-better-times-ahead/ https://www.adviservoice.com.au/2013/09/job-losses-longer-hours-but-better-times-ahead/#respond Thu, 12 Sep 2013 21:40:38 +0000 https://adviservoice.com.au/?p=24886

Labour force

  • The unemployment rate rose 0.1 per cent in August.

    The unemployment rate rose 0.1 per cent in August.

    Jobs & jobless rate: Employment fell by 10,800 in August after falling by a revised to 11,400 jobs in July (previously reported as a 10,200 loss in jobs).

  • The unemployment rate rose from 5.7 per cent to 5.8 per cent in August – a fresh four year high. The participation rate fell from 65.1 per cent to 65.0 per cent. Full-time jobs fell by 2,600 in August after falling by 7,300 in July. Part-time jobs fell by 8,100 in August after falling by 4,200 in July.
  • In the first eight months of 2013 part time jobs have risen by 66,100 while full time jobs have risen by just 5,700.
  • Hours worked at record highs. The number of hours worked rose by 0.1 per cent in August to be up 2.0 per cent over the year to August.
  • Unemployment across states and territories: NSW 5.9 per cent (5.7 per cent in July); Victoria 5.7 per cent (5.7 per cent); Queensland 6.0 per cent (5.9 per cent); South Australia 6.8 per cent (7.1 per cent); Western Australia 5.0 per cent (4.6 per cent); Tasmania 8.3 per cent (8.2 per cent); Northern Territory 5.5 per cent (5.4 per cent); ACT 3.7 per cent (3.7 per cent).

What does it all mean?

  • First and foremost it should be said that the unemployment figures are largely backward looking. Highlighting the sluggishness in the broader economy in the lead up to the election. More timely figures on consumer and business confidence have been more upbeat suggesting that activity levels over the next few months should be firmer.
  • The pickup in in consumer and business confidence now needs to translate into more activity. The latest results are more of a snapshot on how the economy looked 4-5 months ago. Clearly it takes time to take on new staff, from the start of the interviewing process to when the new starters finally commence work. But given the fact that the economy is crawling of a low base while also trying to adjust to the structural imbalances from the pullback in mining investment it is likely the jobless rate will probably edge towards 6.0 per cent over the next few months.
  • Up until the election businesses were treading water. Trading conditions touched the worst levels in four-years and employers were not keen to take on additional staff. The $64 question is what happens now? The pickup in in consumer and business confidence now needs to translate into more activity.
  • While employers are not out there significantly firing workers they are not adding to the workforce. Rather businesses are in a holding pattern, awaiting an improvement in conditions and managing staff hours. A broader view of the labour market data shows that businesses are still more inclined to hire part-time workers and contract staff than take on full-time staff. Part time employment lifted by almost 66,100 workers over the eight months of 2013 compared with a paltry 5,700 full-time jobs created. The people getting jobs probably prefer full-time work to part-time work, and the loss in income, has had an indirect hit on discretionary retail spending.
  • Interestingly hours worked has lifted by 2 per cent over the past year and is now holding at record highs. It seems that employers are working existing staff longer hours.
  • The Reserve Bank is well placed to cut rates again if it deems it is necessary. However the key question facing policymakers is how activity responds now that the election is done and dusted. Businesses have been holding back investment plans; however now that confidence is lifting the Reserve Bank would be hoping it translates to a pickup in activity. CommSec expects the labour market to track sideways over the rest of 2013, Activity levels across the broader economy are only in the early stages of a recovery, largely driven by the improvement in housing activity – which should support employment over the early part of 2014.
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Labour force

  • The unemployment rate rose 0.1 per cent in August.

    The unemployment rate rose 0.1 per cent in August.

    Jobs & jobless rate: Employment fell by 10,800 in August after falling by a revised to 11,400 jobs in July (previously reported as a 10,200 loss in jobs).

  • The unemployment rate rose from 5.7 per cent to 5.8 per cent in August – a fresh four year high. The participation rate fell from 65.1 per cent to 65.0 per cent. Full-time jobs fell by 2,600 in August after falling by 7,300 in July. Part-time jobs fell by 8,100 in August after falling by 4,200 in July.
  • In the first eight months of 2013 part time jobs have risen by 66,100 while full time jobs have risen by just 5,700.
  • Hours worked at record highs. The number of hours worked rose by 0.1 per cent in August to be up 2.0 per cent over the year to August.
  • Unemployment across states and territories: NSW 5.9 per cent (5.7 per cent in July); Victoria 5.7 per cent (5.7 per cent); Queensland 6.0 per cent (5.9 per cent); South Australia 6.8 per cent (7.1 per cent); Western Australia 5.0 per cent (4.6 per cent); Tasmania 8.3 per cent (8.2 per cent); Northern Territory 5.5 per cent (5.4 per cent); ACT 3.7 per cent (3.7 per cent).

What does it all mean?

  • First and foremost it should be said that the unemployment figures are largely backward looking. Highlighting the sluggishness in the broader economy in the lead up to the election. More timely figures on consumer and business confidence have been more upbeat suggesting that activity levels over the next few months should be firmer.
  • The pickup in in consumer and business confidence now needs to translate into more activity. The latest results are more of a snapshot on how the economy looked 4-5 months ago. Clearly it takes time to take on new staff, from the start of the interviewing process to when the new starters finally commence work. But given the fact that the economy is crawling of a low base while also trying to adjust to the structural imbalances from the pullback in mining investment it is likely the jobless rate will probably edge towards 6.0 per cent over the next few months.
  • Up until the election businesses were treading water. Trading conditions touched the worst levels in four-years and employers were not keen to take on additional staff. The $64 question is what happens now? The pickup in in consumer and business confidence now needs to translate into more activity.
  • While employers are not out there significantly firing workers they are not adding to the workforce. Rather businesses are in a holding pattern, awaiting an improvement in conditions and managing staff hours. A broader view of the labour market data shows that businesses are still more inclined to hire part-time workers and contract staff than take on full-time staff. Part time employment lifted by almost 66,100 workers over the eight months of 2013 compared with a paltry 5,700 full-time jobs created. The people getting jobs probably prefer full-time work to part-time work, and the loss in income, has had an indirect hit on discretionary retail spending.
  • Interestingly hours worked has lifted by 2 per cent over the past year and is now holding at record highs. It seems that employers are working existing staff longer hours.
  • The Reserve Bank is well placed to cut rates again if it deems it is necessary. However the key question facing policymakers is how activity responds now that the election is done and dusted. Businesses have been holding back investment plans; however now that confidence is lifting the Reserve Bank would be hoping it translates to a pickup in activity. CommSec expects the labour market to track sideways over the rest of 2013, Activity levels across the broader economy are only in the early stages of a recovery, largely driven by the improvement in housing activity – which should support employment over the early part of 2014.

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