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Unemployment and underemployment rates rise in September

Economy
15 October 2020 14:46 (AEDT)

The unemployment and underemployment rate both increased in September, according to figures released today by the Australian Bureau of Statistics (ABS).

An additional 11,300 people were out of work and actively looking for employment bringing that figure to 937,400 people.

The seasonally adjusted data showed a 0.1 per cent increase in the unemployment rate from August to 6.9 per cent in September.

Youth unemployment increased more significantly, rising 0.4 per cent to 14.5 per cent.

Looking at the states and territories, the most notable increase in unemployment was recorded in Tasmania, where the rate rose 1.3 per cent to 7.6 per cent.

The highest level of unemployment still occurred in Queensland, at 7.7 per cent — 0.3 per cent higher than in August.

Employment also decreased by 29,500, with large numbers of people moving in and out of jobs.

This resulted in a 0.2 per cent decrease in the rate of Australia’s working-age population in employment.

ABS Head of Labour Statistics Bjorn Jarvis said the difference between pre and post-pandemic disruptions to Australia’s workforce also remained noticeable.

“Employment in September was around 3.3 per cent below March. The data also showed that hours worked rose by 0.5 per cent, following a small decrease in August. However, hours worked were 5.1 per cent below March,” Bjorn explained.

“The September data provides further insights into the labour market impacts from the stage four restrictions in Victoria. Employment in Victoria decreased by 36,000, following a fall of 37,000 in August. Hours worked in the state fell by a further 2.1 per cent, following the 4.6 per cent fall in August,” he added. 

The underemployment rate also increased from August to September by 0.1 per cent to 11.4 per cent.

The rate was highest in Victoria at 14.9 per cent, followed by South Australia at 11.1 per cent.

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