Monthly employment figures released today show that unemployment rate increased by 0.1 pts to 5.8%.The unemployment rate is still above pre GFC levels and is a cause for concern. Youth unemployment is around 12% nationally and is higher - and approaching crisis point - in many areas.
Youth unemployment, which communities from Tasmania to the NSW Central Coast, Townsville and Cairns have been facing at crisis levels for years, must be addressed by this term of government.
Underemployment has also reached critical levels – it is the real sleeper issue. In May 2016 the underemployment rate had reached 8.4 per cent and was well above the unemployment rate.
A large proportion of previously unemployed people who make it back into the workforce have not been able to find full time jobs. They are stuck in involuntary part-time work and various casual and precarious work arrangements.
This combined with the decoupling of wage growth from productivity means that workers, when they manage to find a job, are being paid less for the same amount of work. While productivity continues to grow, wage growth is tanking.
According to the June Deloit Economics Business Outlook, wage growth has “curled into a ball and started rocking back and forth” Indeed in March 2016 we recorded the lowest wage growth since the wage price index series was created eighteen years ago.
The solution to these compound problems starts with improving wages. Better wages will drive down underemployment and give workers greater spending power, further stimulating the economy. We also know that higher wages are best achieved through collective bargaining, and through union membership. Unionised workforces earn more week by week than those without union representation.
The ACTU encourages the government to work with, rather than against the union movement in order to achieve what the government’s rhetoric would suggest is a common goal; more Australians in real, well-paid, secure jobs.
However, attacks on unions, increased labour market flexibility and programs such as PaTH - which exploit young people rather than offering much-needed training and ultimately employment - are not the solution. These poorly thought out schemes must be reconsidered and replaced with policies that will provide a real pathway to employment.
We stand ready to support any program put forward by the government that will reverse the concerning cuts to skills training and education, bring about positive results for unemployed people and generate jobs.
Youth unemployment, which communities from Tasmania to the NSW Central Coast, Townsville and Cairns have been facing at crisis levels for years, must be addressed by this term of government.
Underemployment has also reached critical levels – it is the real sleeper issue. In May 2016 the underemployment rate had reached 8.4 per cent and was well above the unemployment rate.
A large proportion of previously unemployed people who make it back into the workforce have not been able to find full time jobs. They are stuck in involuntary part-time work and various casual and precarious work arrangements.
This combined with the decoupling of wage growth from productivity means that workers, when they manage to find a job, are being paid less for the same amount of work. While productivity continues to grow, wage growth is tanking.
According to the June Deloit Economics Business Outlook, wage growth has “curled into a ball and started rocking back and forth” Indeed in March 2016 we recorded the lowest wage growth since the wage price index series was created eighteen years ago.
The solution to these compound problems starts with improving wages. Better wages will drive down underemployment and give workers greater spending power, further stimulating the economy. We also know that higher wages are best achieved through collective bargaining, and through union membership. Unionised workforces earn more week by week than those without union representation.
The ACTU encourages the government to work with, rather than against the union movement in order to achieve what the government’s rhetoric would suggest is a common goal; more Australians in real, well-paid, secure jobs.
However, attacks on unions, increased labour market flexibility and programs such as PaTH - which exploit young people rather than offering much-needed training and ultimately employment - are not the solution. These poorly thought out schemes must be reconsidered and replaced with policies that will provide a real pathway to employment.
We stand ready to support any program put forward by the government that will reverse the concerning cuts to skills training and education, bring about positive results for unemployed people and generate jobs.
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