Australian unemployment drops to 7.8% in March; lowest for over two years since October 2019

The latest Roy Morgan employment series data shows unemployment dropping to its lowest since the pandemic began, down 0.7% points to 7.8% - the lowest since October 2019. However, under-employment increased by almost as much and was up 0.6% points to 8.4%.

The moves in the employment market led to unemployment falling 94,000 to 1.13 million Australians (7.8% of the workforce) in March while under-employment increased 93,000 to 1.22 million (8.4% of the workforce). Overall unemployment and under-employment was virtually unchanged at 2.36 million.

• Workforce increased 80,000 in March as employers hire more workers:
  
  The workforce in March was 14,523,000 (up 80,000 from February) – comprised of 13,390,000 employed Australians (up 174,000) and 1,133,000 unemployed Australians looking for work (down 94,000);
  
• Employment increased driven by an increase in part-time employment:
  
  Australian employment increased by 174,000 to 13,390,000 in March driven by an increase in part-time employment, up 289,000 to 4,712,000. However, full-time employment decreased by 115,000 to 8,678,000;
  
• Unemployment was down in March and is well down on a year ago:
  
  1,133,000 Australians were unemployed (7.8% of the workforce), a decrease of 94,000 from February with fewer people looking for full-time work (down 76,000 to 387,000) and also fewer people looking for part-time work, down 18,000 to 746,000.
  
• Under-employment was up in March as part-time employment increased:
  
  In addition to the unemployed, 1.22 million Australians (8.4% of the workforce) were under-employed – working part-time but looking for more work, an increase of 93,000 (up 0.6% points) from February. When part-time employment increases (up 289,000 in March), under-employment usually increases as well as more people working part-time leads to more people wanting to work more hours.
  

In total 2.36 million Australians (16.2% of the workforce) were either unemployed or under-employed in March, virtually unchanged on February. Nevertheless, this is the lowest combined unemployed and under-employed since pre-pandemic in November 2019 – 2.23 million (16.1%).

Compared to early March 2020, before the nation-wide lockdown, in March 2022 there were almost 200,000 more Australians either unemployed or under-employed (+0.6% points) even though overall employment (13,390,000) is over 500,000 higher than it was pre-COVID-19 (12,872,000).

Roy Morgan’s unemployment figure of 7.8% for March is nearly 4% points higher than the ABS estimate for February 2022 of 4.0%. However, the ABS figure for February counts as employed an additional 130,800 Australians who were working zero hours for ‘economic reasons’ or ‘other reasons’ – such as being forced into isolation for being a close contact of a confirmed case. In addition, the ABS notes 221,800 workers worked zero hours due to illness, injury or sick leave in February – a figure that is 99,200 higher than the average for February from 2016-2021 of 122,600.

If these 230,000 non-workers are added back the ABS unemployment estimate increases to 793,000 (5.7% of the workforce). The ABS also claims there are an additional 926,000 Australians (6.6% of the workforce) under-employed for a total of 1.72 million unemployed or under-employed (12.3% of the workforce).

Michele Levine, CEO Roy Morgan, says there is good news for the Morrison Government in Roy Morgan’s March unemployment estimates, but there are also concerns that should be a focus of the current Federal Election campaign:

This Roy Morgan survey on Australia’s unemployment and ‘under-employed’* is based on weekly interviews of 820,263 Australians aged 14 and over between January 2007 and March 2022 and includes 6,046 telephone and online interviews in March 2022. *The ‘under-employed’ are those people who are in part-time work or freelancers who are looking for more work.

Contact Roy Morgan to learn more about Australia’s unemployed and under-employed; who and where they are, and the challenges they face as they search for employment opportunities.

Visit the Roy Morgan Online Store to purchase employment profiles, including for Australians who are employed, unemployed, under-employed, employed part-time, employed full-time, retired, studying and many more.

Roy Morgan Unemployment & Under-employment (2019-2022)

Source: Roy Morgan Single Source January 2019 – March 2022. Average monthly interviews 5,000.
Note: Roy Morgan unemployment estimates are actual data while the ABS estimates are seasonally adjusted.

Roy Morgan Unemployed and ‘Under-employed’* Estimates

*Workforce includes those employed and those looking for work – the unemployed.

Roy Morgan Research cf. ABS Unemployment Estimates

Source: Roy Morgan Single Source October 2006 – March 2022. Average monthly interviews 4,000.
Note: Roy Morgan unemployment estimates are actual data while the ABS estimates are seasonally adjusted.

Roy Morgan Research cf. ABS Unemployment Estimates

Source: Roy Morgan Single Source January 2000 – March 2022. Average monthly interviews 4,000.
Note: Roy Morgan unemployment estimates are actual data while the ABS estimates are seasonally adjusted.

Source: Roy Morgan Single Source April 1995 – March 2022. Average monthly interviews 4,000.
Note: Roy Morgan unemployment estimates are actual data while the ABS estimates are seasonally adjusted.

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