The Albanese government is celebrating what it calls the “strongest start for jobs growth for any new Australian government in history” as it enters its second year in power.
Treasury analysis released by Jim Chalmers’ office shows 333,000 more Australians were employed in April 2023 than in May 2022, which is more than three times the number of jobs gained in the first year of the Abbott Coalition government.
The jobs growth comes on the back of Australia’s recovery from the early stages of the pandemic, which included long border closures.
The recovery has also resulted in almost full employment. The Australian Bureau of Statistics reported a 3.7% unemployment rate in April, which is below what has previously been considered full employment under the non-accelerating inflation rate of unemployment (Nairu) of about 4.5%.
The same Treasury analysis shows 60% of jobs recorded a higher wage rise than the year before, to the March quarter. That 60% figure is almost double the pre-pandemic average of 32.5% recorded in 2019.
Treasury estimates the average full-time worker will have seen their earnings increase by $1,000 more than what would have happened under the previous government, although soaring inflation means people are still struggling to stay afloat.
Chalmers says he understands more needs to be done.
“More Australians in work and earning more are among the really pleasing economic outcomes over the past year,” the treasurer said.
“We’re pleased wages are moving again, but we know that we need to see inflation moderate to secure real wages growth and ease the cost-of-living pressures felt by many Australians.”
The employment minister, Tony Burke, who has continued to push for minimum wage workers to receive pay rises in line with inflation, said the government remained committed to its election promise of “secure jobs and better pay”.
The Albanese government heads back to parliament this week, and debate on its budget bills will begin.
The Coalition has signalled it will not be supporting all measures, including the modest $40-a-fortnight increase to the unemployment, Austudy and youth allowance payments, or the changes to the petroleum resource rent tax, meaning Labor will have a fight on its hands in the Senate.
Burke said the staggered start dates to the measures (for example, the welfare increase is not scheduled to begin until September) means the government has some time to negotiate on what it needs passed. The Greens and independent senator David Pocock have both already given their support to the welfare changes, although may attempt to negotiate more help.
But when it comes to the Fair Work Commission’s coming decision on wages, that will depend on the information at hand, Burke said.
“There will be more inflation figures that come through before the final decision is made and so that’s why we do it in terms of not going backwards,” he told Sky News on Sunday.
