The ABS Labour Force numbers released today show employment was broadly unchanged in July (down 300). However, it is now 109,300 higher than at the start of the year. This means, on average, around 15,600 jobs have been created in each month of 2014. This compares to 5,100 per month for the last calendar year (2013).
Even though this is a volatile monthly series, the results are disappointing and underscore the imperative for the Government’s Economic Action Strategy to build a strong, secure and prosperous economy for all Australians.
The seasonally adjusted unemployment rate increased to 6.4 per cent in July (from 6.0 per cent in June). This was partly driven by the rise in the participation rate. The participation rate increased to 64.8 per cent meaning more people are in the labour market either in jobs, or looking for jobs.
The Abbott Government has an Economic Action Strategy to deliver stronger jobs growth right across the country. We have already abolished the Carbon Tax, and are working with a diverse Senate to abolish the Mining Tax, cut red tape and end government waste.
Our strategy includes the nation’s biggest ever infrastructure package. However, Labor and the Greens in the Senate are opposing our Asset Recycling Fund that would boost growth and create jobs. The fund alone would catalyse the building of almost $40 billion of productivity enhancing infrastructure.
The Budget includes measures that will improve business investment and also create incentives for people to get back into the workforce.
These include:
- Reinvigorating the Work for the Dole programme to ensure practical work experience and direct connections in a work-like environment are given top priority;
- Requiring those aged under 30 years to be learning or earning through tighter eligibility criteria for Newstart and Youth Allowance; and
- Restart wage subsidies for mature age job seekers. Since 1 July 2014, an incentive payment of up to $10,000 (GST inclusive), called Restart, is available to employers who hire a mature age job seeker (aged 50 years or over) who has been unemployed for a minimum of six months.
The Abbott Government will continue to pursue the economic reforms needed to boost growth and create jobs through restoring sustainability to the Budget and key services. Our Budget put forward our plan to address Labor’s legacy of $123 billion of projected deficits and debt that was projected to rise to $667 billion unless action was taken.