6202.0 - Labour Force, Australia, Jun 2020 Quality Declaration 
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 16/07/2020   
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LABOUR FORCE COMMENTARY June 2020

NATIONAL ESTIMATES

SEASONALLY ADJUSTED ESTIMATES

Australia's seasonally adjusted estimate of employment increased by 210,800 people in June 2020, with:

  • the number of unemployed people increasing by 69,300 people;
  • the unemployment rate increasing 0.4 percentage points (pts) to 7.4%;
  • the underemployment rate decreasing by 1.4 pts to 11.7%;
  • the underutilisation rate decreasing by 1.0 pts to 19.1%;
  • the participation rate increasing 1.3 pts to 64.0%; and
  • the employment to population ratio increasing 1.0 pts to 59.2%.

Employment increased by 210,800 people (1.7%) between May and June 2020, with full-time employment decreasing by 38,100 people and part-time employment increasing by 249,000 people. Compared to a year ago, there were 306,800 less people employed full-time and 215,500 less people employed part-time. This change led to a decrease in the part-time share of employment over the past 12 months, from 31.6% to 31.1%.

The employment to population ratio, which is a measure of how employed the population (aged 15 years and over) is, increased by 1.0 pts in June to 59.2%.


GRAPH 1. EMPLOYMENT TO POPULATION RATIO, PEOPLE, June 2010 to June 2020
Graph shows the seasonally adjusted employment to population ratio, from 61.9% in June 2010, dropping to 60.5% in October 2014 before rising to 62.7% in August 2019. It was 62.5% in March 2020 and fell to 9.2%  in June 2020.


Monthly hours worked in all jobs increased by 64.3 million hours (4.0%) to 1,664.7 million hours in May 2020, a larger increase than that seen for employed people (1.7%). In June 2020, the average hours worked per employed person was around 31.1 hours per week, up from around 30.4 hours in May.

The unemployment rate increased 0.4 pts to 7.4% and was 2.2 pts higher than in June 2019. The number of unemployed people increased by 69,300 in June 2020 to 992,300 people, and increased by 280,200 people from June 2019.

The underemployment rate decreased by 1.4 pts to 11.7% and was 3.5 pts higher than in June 2019. The number of underemployed people decreased by 152,500 in June 2020 to 1,555,600 people, and increased by 39.8% or 442,600 people since June 2019.


GRAPH 2. UNDEREMPLOYMENT, UNEMPLOYMENT AND UNDERUTILISATION RATES
GRAPH 2. UNDEREMPLOYMENT, UNEMPLOYMENT AND UNDERUTILISATION RATES

The labour force includes the total number of employed and unemployed people. Between May and June the labour force increased by 280,100 people (2.1%) to 13,320,800. Over the past year the labour force decreased by 1.8%, while the total civilian population aged 15 years and over increased by 1.3%.

The participation rate increased 1.3 pts to 64.0% in June 2020, and was 2.0 pts lower than in June 2019. Female participation increased 1.5 pts to 59.0%, and male participation rate increased 1.1 pts to 69.1%.

The participation rate for 15-64 year olds, which controls (in part) for the effects of an aging population, increased by 1.5 pts in June 2020 to 76.6%. This increase was slightly higher than for the total population, highlighting the relatively larger increases in participation in the younger age groups.

The participation rate for 15-24 year olds (who are often referred to as the "youth" group in the labour market) increased 3.9 pts to 63.5% in June 2020. Employment for 15-24 year olds increased by 101,500 people (6.3%). The unemployment rate for this group increased 0.4 pts to 16.4%.


STATE AND TERRITORY ESTIMATES

In June 2020, all the states and the Australian Capital Territory recorded increases in employment. The Northern Territory that recorded a small decrease. The largest increases in employment were recorded in New South Wales (up 80,800 people), Queensland (up 52,900 people) and Victoria (up 29,500 people).

Unemployment rates increased in most states and territories except for Queensland and the Northern Territory, which decreased by 0.1 pts (down to 7.7%) and 1.8 pts (down to 5.7%) respectively. The largest increases were 0.9 pts in South Australia (up to 8.8%) and the Australian Capital Territory (up to 5.1%).

Participation rates increased in all states and territories except for the Northern Territories (down 2.8 pts to 71.6%). The largest participation rate increases were 2.0 pts in the Australian Capital Territory (up to 71.5%), 1.9 pts in Tasmania (up to 59.2%), and 1.6 pts in New South Wales (up to 63.7%) and Western Australia (up to 66.6%).

Due to trend estimates not being published in June 2020, seasonally adjusted estimates are included for the two territories.


TABLE 1. UNEMPLOYMENT RATE, STATES AND TERRITORIES - SEASONALLY ADJUSTED

May 2020
June 2020
%
%

New South Wales
6.4
6.9
Victoria
6.9
7.5
Queensland
7.8
7.7
South Australia
7.9
8.8
Western Australia
8.1
8.7
Tasmania
6.3
6.9
Northern Territory
7.4
5.7
Australian Capital Territory
4.1
5.1
Australia
7.1
7.4