Is the unemployment rate dropping because jobs are increasing?

Is the unemployment rate dropping because jobs are increasing?

unemployment rate

For the unemployment rate to drop for healthy sustainable reasons, employment must increase faster than the working-age population. This way, growth in employment accounts for the increase in the working-age population and migrant workers coming to Australia. So to maintain job growth, we are forced to hire from the unemployed rather than bringing in workers from overseas alone.

The current drop in unemployment is not due to an increase in the number of jobs on offer but a spike in job vacancies caused by a drop in migrant workers. Our current labour force isn’t big enough to fulfil our labour requirements. Job vacancies increased by 18.5% in the last quarter of 2021

We can see from the ABS data below that after the initial shock of COVID in 2020, job vacancies skyrocketed and in turn, the unemployment rate plummeted as migrant workers disappeared.


unemployment rate


labour force

Posted in

Similar posts you may like

  • Intellectual Property Box Regime

    An intellectual property box regime is a special tax regime for intellectual property revenues. It is also known as a patent box, innovation box Read more

  • The pros and cons of tendering

    Tendering is the process of choosing the best or cheapest company to supply goods or do a job by asking several companies to make Read more

  • Mortgage Offset Account

        Mortgage offset accounts are savings accounts that are structured so your savings balance in the account is offset against your home loan Read more

  • Simplify your banking

    How many cards and bank accounts do you have? We often have more bank accounts than we need, complicating our finances, reducing synergies, and Read more

"You’d be stupid not to try to cut your tax bill and those that don’t are stupid in business"

- Bono: U2