A million new jobs isn’t what it’s cracked up to be
“Over the last five years we’ve delivered more than a million jobs,” Scott Morrison crowed when announcing the Federal Government’s claim to have hit that promised milestone last year, ABC news reported.
Last week he also made a new pledge for the Government, “to see 1.25 million jobs created over the next five years”. A sure sign the federal election campaign is underway.
On the face of it, that might sound like an impressive number, but a million or so jobs isn’t at all impressive, especially as our population grows.
The PM’s headline grabbing boast carefully and very disingenuously didn’t say what sort of jobs they would be, that is, whether they would be full-time, part-time, permanent or casual.
I was also reminded that the boast of the million jobs created since Tony Abbott promised them five years ago isn’t all that its cracked up to be by a Facebook post from Greens NSW MP David Shoebridge, who responded by pointing out that the Liberals’ boast about employment growth is largely due to sheer population growth.
Mr Shoebridge also pointed out that in December of last year full-time employment decreased by 3,000, part-time employment increased 24,600, teenage employment decreased 8,600 and, very disturbingly, teenage unemployment increased to 24.7%.
With those disturbing statistics in mind, let’s tease out the real facts behind Mr Morrison’s early federal election campaign boast.
To begin with, economists say Australia needs to add about a million new jobs every five years just to keep pace with rising population growth and stop the unemployment rate from climbing.
“The numbers might sound impressive as a headline rate, but really it has to be put in context of the change in the size of the population,” Commonwealth Bank senior economist Gareth Aird said. In fact, we’ve added 1.7 million people to the population over the past five years.
A million jobs is just about enough to keep the unemployment rate flat, but not enough to bring it down, so it’s cold comfort to the unemployed or those just about to enter the workforce, such as school leavers and TAFE and university graduates.
The Centre for Future Work points out that creating more than a million jobs in five years is far from unusual, their new report shows.
In fact, and exploding the PM’s boast, the one million jobs added to the economy between 2013 and 2018 marked the 10th time in Australia’s history that 1 million-plus net new jobs were created over five years. And of course, nine of those ten years were with a smaller population
Indeed, those historic achievements were a lot better because our population was in fact a lot smaller. One million as a share of Australia’s smaller population was far more significant than recent job creations.
When Australia reached that milestone for the first time 30 years ago, the labour force was little more than half its current level.
“30 years ago it represented an 18 per cent increase in employment, which was pretty good,” said economist Jim Stanford, director of the Centre for Future Work, which is part of the progressive think tank The Australia Institute.
“By comparison, the rate of jobs growth over the past five years is pretty mediocre, barely more than half as good as it was back then.”
“This was the slowest job creation in any of those periods that did not experience a recession or major financial crisis,” said Dr Stanford.
We also need better quality jobs that provide the full time employment people need, for part-time jobs are a rising share of total employment. Almost half of the new jobs created between 2013 and 2018 were part-time, and the share of part-time work in total employment grew notably.
These jobs also need to be permanent, as casualisation is a major problem with today’s job market.
They also need to be decently paid, for wages growth has flatlined at record lows.
So, unless the jobs are well paid permanent full time ones the PM’s boast is nothing more than an empty attempt to fool all of the people all of the time as he kicks off his federal election campaign.