![[Australia] Payroll job numbers fall under weight of COVID restrictions](http://globalpayrollassociation.com/cdn/shop/articles/bigstock-Text-Word-Payroll-Is-Written--365799841_1200x.jpg?v=1631225270)
Payroll job numbers fell further in the early weeks of August, under the burden of COVID-19 lockdowns, pointing to a spike in the unemployment rate in the months to come, 7NEWS reports.
The Australian Bureau of Statistics said payroll jobs fell by a further 0.7 per cent in the fortnight to August 14 compared to a fall of 1.8 per cent in the previous two weeks.
The largest drops were in NSW - down by 1.2 per cent - followed by Queensland by one per cent, the ACT 0.7 per cent lower and Victoria declining 0.6 per cent.
"These four states and territories had lockdowns for either all or part of the first half of August, in addition to existing restrictions and border closures across the country," Bjorn Jarvis - ABS head of labour statistics - said.
The data is a guide to the full labour force report for August, due for release on September 16.
Reserve Bank governor Philip Lowe warned that the unemployment rate will increase over the coming months as the economy takes a hit from COVID-19 lockdowns.
Commonwealth Bank group economists reportedly expect that the official August labour force data will show around 300,000 job losses with the unemployment rate increasing from 4.6 per cent to 5.2 per cent.
There are further signs that demand for workers is declining fast. Figures released yesterday showed that job advertisements posted through the SEEK network dropped 5.3 per cent in August.
"Perhaps unsurprisingly, states and territories under the strictest lockdowns each saw a decline in job ad volumes," SEEK ANZ managing director Kendra Banks said.
Adverts in NSW declined by 10.7 per cent in August, while they were 6.3 per cent lower in Victoria.
Dr Lowe expects the economy to resume its recovery in the December quarter and called the impact of having lockdowns in NSW, Victoria and the ACT temporary.
National Australia Bank CEO Ross McEwan expects the recovery will be more "bumpy" and will rely on opening up the economy under national plan guidelines.
Mr McEwan told the House of Representatives economic committee, "We don't believe it will be the same enormous bounce back we had after the big contraction last (year)."
NAB expects the economy will contract by 3.5 per cent in the September quarter and return to a positive trajectory in the final three months of the year. It expects the economy to grow by four per cent in 2022.
Westpac CEO Peter King told the hearing that his economists expect the economy to contract by four per cent in the September quarter but then to rebound by seven per cent over 2022.
"Westpac is confident in the underlying strength of the Australian economy, and that the current lockdown period will be followed by a strong bounce back in 2022," Mr King said.
Source: 7NEWS
Payroll job numbers fell further in the early weeks of August, under the burden of COVID-19 lockdowns, pointing to a spike in the unemployment rate in the months to come, 7NEWS reports.
The Australian Bureau of Statistics said payroll jobs fell by a further 0.7 per cent in the fortnight to August 14 compared to a fall of 1.8 per cent in the previous two weeks.
The largest drops were in NSW - down by 1.2 per cent - followed by Queensland by one per cent, the ACT 0.7 per cent lower and Victoria declining 0.6 per cent.
"These four states and territories had lockdowns for either all or part of the first half of August, in addition to existing restrictions and border closures across the country," Bjorn Jarvis - ABS head of labour statistics - said.
The data is a guide to the full labour force report for August, due for release on September 16.
Reserve Bank governor Philip Lowe warned that the unemployment rate will increase over the coming months as the economy takes a hit from COVID-19 lockdowns.
Commonwealth Bank group economists reportedly expect that the official August labour force data will show around 300,000 job losses with the unemployment rate increasing from 4.6 per cent to 5.2 per cent.
There are further signs that demand for workers is declining fast. Figures released yesterday showed that job advertisements posted through the SEEK network dropped 5.3 per cent in August.
"Perhaps unsurprisingly, states and territories under the strictest lockdowns each saw a decline in job ad volumes," SEEK ANZ managing director Kendra Banks said.
Adverts in NSW declined by 10.7 per cent in August, while they were 6.3 per cent lower in Victoria.
Dr Lowe expects the economy to resume its recovery in the December quarter and called the impact of having lockdowns in NSW, Victoria and the ACT temporary.
National Australia Bank CEO Ross McEwan expects the recovery will be more "bumpy" and will rely on opening up the economy under national plan guidelines.
Mr McEwan told the House of Representatives economic committee, "We don't believe it will be the same enormous bounce back we had after the big contraction last (year)."
NAB expects the economy will contract by 3.5 per cent in the September quarter and return to a positive trajectory in the final three months of the year. It expects the economy to grow by four per cent in 2022.
Westpac CEO Peter King told the hearing that his economists expect the economy to contract by four per cent in the September quarter but then to rebound by seven per cent over 2022.
"Westpac is confident in the underlying strength of the Australian economy, and that the current lockdown period will be followed by a strong bounce back in 2022," Mr King said.
Source: 7NEWS