Employment has recovered to where it was a year ago, continuing a marked rebound from last year's recession caused by the COVID-19 pandemic.
Employment has recovered to where it was a year ago, continuing a marked rebound from last year's recession caused by the COVID-19 pandemic.
Australian Bureau of Statistics figures show payroll jobs rose 1.3 per cent in the fortnight to January 30, with increases in almost every industry.
"Payroll jobs continued to follow a seasonal pattern, increasing through January, and were around the same level as last year," ABS head of labour statistics Bjorn Jarvis said today.
However, annual jobs growth varied across the nation, with the strongest rise in payroll positions in the Northern Territory, up 3.5 per cent, but Tasmania and Victoria were both down 1.7 per cent.
The payroll jobs series was introduced to provide a more frequent update on the state of the economy during the pandemic.
Monthly labour force figures are released on Thursday, which economists expect will show a further 30,000 people joining the workforce with the jobless rate easing further to 6.5 per cent from 6.6 per cent.
The Reserve Bank, in the minutes of its February 2 board meeting also released today, said the peak in the unemployment rate had "probably already occurred".
The minutes again confirmed the cash rate would remain at 0.10 per cent for "as long as necessary" and possibly until 2024.
Despite this positive backdrop, the snap COVID-19 lockdown in Victoria has put a dent in consumer confidence and raised the risk of a material impact on spending.
The ANZ-Roy Morgan consumer confidence index dropped 1.3 per cent nationally in the past week and 5.4 per cent in Melbourne.
Expectations for "future financial conditions" tumbled 2.8 per cent, the sharpest weekly decline in over seven weeks.
"The Victorian lockdown will undoubtedly have a material impact on spending," ANZ head of Australian economics David Plank said.
However he expects spending will rebound quickly when the lockdown eases.
And despite the latest downturn, confidence remains close to its long-run average.
A national think tank believes confidence and economic activity has been incredibly resilient in the face of periodic outbreaks of the virus.
As such, the Committee for Economic Development of Australia is urging governments to seize the opportunity to deliver long-term economic and social benefits as the economy recovers.
"Australia remained resilient by taking bold steps on health and the economy – 2021 will be no different," CEDA chief executive Melinda Cilento said releasing its latest economic and political outlook.
Ms Cilento says a rapid and widespread vaccine rollout will be crucial to maintaining recent momentum.
The report says investments in social infrastructure such as childcare, aged care and housing should be high on the list.
Ms Cilento expects economic growth and jobs to dominate the policy debate this year but says climate change should also be front of mind, given the global policy shifts driven by the new Biden administration in the US.
While the federal government was moving towards committing Australia to net-zero emissions by 2050, embracing that goal as soon as possible - and outlining more ambitious policies to get Australia there - would build confidence among business and the broader community, she said.
