Employment Minister Murray Watt is delighted with new research showing the Federal Government has overseen the lowest average unemployment rate in half a century. Photo: Supplied.
The seasonally adjusted unemployment rate remained steady at 4.1 per cent in February, the latest data from the Australian Bureau of Statistics (ABS) shows.
The figures have been released just as a new report from progressive think tank the McKell Institute shows the current Federal Government has overseen the lowest average unemployment rates of any government since the Whitlam era.
An average unemployment rate of 3.8 per cent over the past three years stands out against the historical average of 6.3 per cent since 1972.
ABS head of labour statistics Bjorn Jarvis said, with employment falling by 53,000 people and the number of unemployed falling by 11,000, the unemployment rate was unchanged last month.
Fewer older workers returning to work in February contributed to the falling employment figure.
“This follows higher levels of employment in these age groups in recent years, particularly in 2024, alongside growth in the employment-to-population ratio over the last few years,” Mr Jarvis said.
“In contrast, we continue to see growth in employment for people aged between 15 and 54 over the year.”
Despite the fall in employment in February, it was still about 266,000 people – or 1.9 per cent – higher than last February in seasonally adjusted terms.
This annual growth rate is about the 20-year pre-pandemic average of 2.0 per cent.
“While the employment-to-population ratio fell 0.4 percentage points to 64.1 per cent in February, it is still only 0.4 points below its historical high in December, and around where it was in June 2024,” Mr Jarvis said.
The McKell Institute is lauding the Albanese government for delivering what it says is Australia’s lowest average unemployment rate in more than 50 years.
Its analysis shows that at 3.8 per cent, the government’s average unemployment rate in its first term is far lower than the historical average.
“This unemployment record has extended to cohorts traditionally left behind, with women, young Australians, those with less formal education, and Indigenous Australians all additionally seeing record low unemployment rates,” the report states.
“Seven out of eight of Australia’s states and territories have seen their lowest average unemployment rates under the Albanese Labor government.”
The research also shows Australia’s participation rate has continued to climb and is now at its highest rate since recording began; job search times remain near record lows; workers are increasingly leaving jobs on their own terms; and real wages are steadily being clawed back
“A low unemployment rate is not some abstract number, it is fundamental to the success of individuals and societies,” McKell Institute chief executive Ed Cavanough said.
“Low unemployment in any society means long-term incomes and better social and health outcomes for human lives.
“It is remarkable and noteworthy that Australia has just enjoyed its best term of low unemployment since the early 1970s, especially considering our population has more than doubled since then.”
The government has jumped on the report as evidence of its ability to manage the economy and create jobs.
Employment Minister Murray Watt said it was particularly pleasing to see positive results for Australians who have traditionally been left behind in the jobs market.
“The report shows participation levels are up, female unemployment is the lowest it has been under any government since 1972, and we’ve also overseen the lowest sustained youth unemployment rate since data recording began in the late 70s,” Mr Watt said.
“This is no accident. The Albanese government’s responsible economic policy has encouraged businesses to grow, while we have invested in initiatives that give Australians more opportunities to upskill and join, or rejoin, the workforce.
“We are committed to ensuring more people have secure work, earn more and keep more of what they earn and this shows once again our economy has turned a corner.”
But the Coalition said the government had no plan to restore prosperity and hope for too many forgotten Australians.
Shadow Treasurer Angus Taylor said Labor was “instead preoccupied with telling Australians they have never had it so good”.
He said the imminent federal election would be about who could better manage the economy to help Australians get ahead.
“Under Labor, our economy is weak, inflation and interest rates have stayed too high for too long, housing is unaffordable, and our country is less safe because this government has failed to prioritise managing the issues that matter,” Mr Taylor said.
“The Coalition’s plan will deliver a stronger economy with low inflation and affordable homes in safer communities.”
Original Article published by Chris Johnson on Riotact.
