ANZ plans to slash 1000 jobs. Qantas announces 500 jobs to go. Billibong will shed 80 local jobs. Air Australia enters administration with 300 staff stood down.
Jobs are going left, right and center. Above is a subset of higher profile jobs losses announced just this week.
Yet, despite all the doom and gloom on the jobs front, the ABS announced yesterday the unemployment rate has actually decreased 0.1 points to 5.1 percent in January.
This comes as a bit of a surprise as Roy Morgan has earlier announced unemployment had spiked 1.7 percent in January to 10.3 percent – (2.21 million Australians unemployed or underemployed – Highest ever recorded. Unemployment at 10.3% – A record 1.28 million Australian’s looking for work.)
Historically, the Roy Morgan and ABS unemployment figures have tracked each other. That is until recently.
Roy Morgan has just filed a press release comparing, from its point of view, the two sets of figures – Roy Morgan Unemployment Figures (10.3% in January) show situation ‘on the ground’ while ABS unemployment figures (5.1%) defy belief as job losses mount around Australia.
It states the methodology between the two surveys differ as the the ABS data may lag what is actually happening “on the ground.” To jump through the hoop and be classed as unemployed by the ABS, you must have been looking for work in the four weeks prior to the survey and be available for work when the survey takes place. Roy Morgan on the other hand simply classifies a person as unemployed if they are not employed and is looking for work. This would suggest the ABS figures will lag Roy Morgan’s by a month or two.
If this is the case, we can expect the ABS unemployment will start trending upwards. It should also be noted many of the job losses haven’t yet occurred, but have been announced. In the example of ANZ, it plans the cull 1000 workers from its workforce before September.
» 2.21 million Australians unemployed or underemployed – Highest ever recorded. Unemployment at 10.3% – A record 1.28 million Australian’s looking for work. – Roy Morgan, Friday 3rd February 2012.
» Roy Morgan Unemployment Figures (10.3% in January) show situation ‘on the ground’ while ABS unemployment figures (5.1%) defy belief as job losses mount around Australia. – Roy Morgan, Friday 17th February 2012.
» 6202.0 – Labour Force, Australia, Jan 2012 – The Australian Bureau of Statistics, Thursday 16th February 2012.