Australian labour force data to September 2021

 Australian labour force trend to 80% vaccinated


The Australian labour force experienced a historic shock with the arrival of Covid on the shores of the country, and the subsequent closure of several industries, around March 2020. Covid-19 vaccines began to roll out 12 months later in several countries, but Australia's vaccine drive did not accelerate until mid-2021. Until this time, Australia had been successful in keeping the country almost Covid-free. Employment had also bounced back to such an extent, that the unemployment rate was at a historic low of 4.6%. However, this was partly due to a slight reduction of labour force participation. The sudden arrival of the Delta variant in NSW meant a new quarantining, and closure of industries (July 2021). Victoria likewise experienced a second lockdown, and industry closures. Thus, the slight spike in unemployment, and a more dramatic reduction of workforce participation in Aug-Sept of 2021. 

Labour force data is a lagging indicator of employment trend and labour demand is bouncing back, as the country surpasses 80% of adults vaccinated in November. Indeed, the question now arises whether labour shortages will drive a rise in wages and thus inflation, and for how long into 2022. 

#Australia #6202 #Covid #Labourforce

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