Unemployment and under-employment soar in Queensland during the pandemic but are relatively unchanged in NSW & Victoria

A special analysis of Roy Morgan’s latest unemployment estimates by State during the June quarter 2021 compared to the last quarter prior to the pandemic, December quarter 2019, shows significant changes in two States – Queensland and South Australia.

Queensland appears as the big ‘loser’ of the COVID-19 pandemic so far with total unemployment and under-employment in the sunshine state now at 23.5% of the workforce in the June quarter 2021, an increase of 6.6% points since the December quarter 2019 – and now clearly higher than any other State.

In contrast South Australia has handled the pandemic better than any other state on the employment front with total unemployment and under-employment in the State now at 17.4% of the workforce and below the national average – a decline of 6.5% points on December quarter 2019. South Australia has had fewer days in lockdown of any State and is the only mainland State not to experience a lockdown so far during 2021.

Despite spending more time in lockdown than the other States the lowest unemployment and under-employment is again to be found in the two largest States of New South Wales and Victoria. New South Wales had the lowest unemployment and under-employment of any State at 16.5% of the workforce in the June quarter 2021, an increase of 1.3% points while Victoria was second at 17.1% (up 0.1% points).

Western Australia has powered through the pandemic – even recording a Budget surplus during 2020 on the back of mining royalties – and its performance is confirmed by a strengthening employment market with total unemployment and under-employment of 17.3% in the June quarter 2021, down 2.4% points from late 2019.

Tasmania has been largely isolated from the mainland States for much of the pandemic and there has been little change to the island State’s employment picture with total unemployment and under-employment of 21.4% of the workforce in the June quarter 2021, down 0.4% points on late 2019.

Australian Unemployment & Under-employment by State

Roy Morgan Unemployment Estimates December Quarter 2019 cf. June Quarter 2021

Source: Roy Morgan Single Source (Australia) comparing Unemployment & Under-employment in October – December 2019 (13,526 interviews) and April – June 2021 (18,837 interviews) of Australians 14+.

Michele Levine, CEO, Roy Morgan, says:

“Australia’s handling of COVID-19 has been widely lauded as one of the world’s best in terms of keeping the virus out of the country and most Australians have lived a largely normal life during the last 18 months – although there has been one nation-wide lockdown in early 2020, a long Victorian lockdown and several shorter lockdowns around the country to deal with.

“Since the pandemic hit Australia in mid-March 2020 the economy has managed to grow by 1.1% over the year to March 2021 when most comparable countries experienced a prolonged contraction. This growth despite the challenge of COVID-19 has under-pinned a fairly strong performance on the employment front – although there have been ‘winners’ and ‘losers’ as well.

“The biggest loser of the pandemic on the employment front has been the tourism-dependent Queensland which has seen total unemployment and under-employment soar from 16.9% of the workforce in the December quarter 2019 to 23.5% in the June quarter 2021 – an increase of 6.6% points.

“The increase in Queensland is fairly evenly spread between an increase in unemployment by 3% points to 11% and an increase in under-employment by 3.7% points to 12.6% over this period. The tourism industry in Queensland has been hard hit by the continuing closure of international borders and the snap border closures whenever there has been a domestic outbreak of COVID-19 has added tremendous uncertainty to any domestic holiday bookings for people from Sydney and Melbourne.

“In contrast to the situation in Queensland it is South Australia which has performed above average over the course of the pandemic. Total unemployment and under-employment in the State has fallen from 23.9% pre-pandemic to 17.4% in the June quarter 2021 – a drop of 6.5% points.

“South Australia’s management of COVID-19 has been ‘top of the class’ with fewer outbreaks than other mainland States and not one day of lockdown for the State so far during 2021. The lesser reliance of South Australia on international tourism than other mainland States has also served the local economy well during a time when international borders have remained closed.

“A partnership between Roy Morgan and UberMedia which tracks the movement of people in locations around Australia shows the Adelaide CBD has tracked at a higher rate of movement than other Capital Cities for most of the pandemic – and every day of the last five months

“However, despite the good performance of South Australia, the two largest States of NSW and Victoria again have the lowest overall unemployment and under-employment. Before the current lockdown in Sydney there were a total of 16.5% of the workforce in NSW either unemployed or under-employed, an increase of 1.3% points from late 2019 and Victoria’s total unemployment and under-employment was 17.1%, virtually unchanged from pre-pandemic.

“The resilience of NSW and Victoria is impressive as Sydney and Melbourne have experienced longer lockdowns, and far more outbreaks of COVID-19, than any other cities. The importance of the two States to the national economy is under-lined by the fact nearly three-fifths of economic activity (57%) in Australia is generated within NSW and Victoria based on the latest ABS GDP figures.

“What these unemployment estimates do show is that the RBA was right to hold interest rates at a record low of 0.1% this week as there is still far too much unemployment and under-employment in the Australian economy to consider raising interest rates at present.

“The latest Roy Morgan June estimate shows there are now 2.65 million (17.9% of the workforce) Australians who are either unemployed or under-employed – and this figure was before the current three-week long lockdown in Sydney which may well be extended.”

This Roy Morgan survey on Australia’s unemployment and ‘under-employed’* is based on weekly interviews of 764,684 Australians aged 14 and over between January 2007 and June 2021 and includes 13,526 interviews in December quarter 2019 and 18,837 interviews in June quarter 2021. *The ‘under-employed’ are those people who are in part-time work or freelancers who are looking for more work.

Empty flights cast an air of doom

Original article by Robyn Ironside
The Australian – Page: 4 : 7-Jul-21

The Board of Airline Representatives of Australia’s executive director Barry Abrams has warned that the nation’s coronavirus-induced lower caps on inbound passenger numbers means that some international flights to Australia will no longer be commercially viable. Two-thirds of flights into Sydney will be restricted to no more than 26 passengers, while no passengers will be permitted on the remainder. Likewise, most flights into Melbourne will be restricted to a maximum of 13 passengers. The impact of reduced passengers loads may be partially offset by strong demand for air freight.

CORPORATES
BOARD OF AIRLINE REPRESENTATIVES OF AUSTRALIA INCORPORATED

‘Heartbreaking’: Grand Prix cancelled again

Original article by Patrick Durkin
The Australian Financial Review – Page: 7 : 7-Jul-21

The COVID-19 pandemic has forced the Victorian government to cancel the Australian Formula One Grand Prix for a second year. The 2021 race had already been rescheduled from March to November; the government has attributed its cancellation to factors such as the pace of the national vaccination rollout and a recent decision to slash the weekly cap on international arrivals. The logistics involved in the mandatory 14-day quarantine period for drivers and support teams is also said to have contributed to the Grand Prix’s cancellation. The Phillip Island round of the MotoGP world championship will also not be staged in 2021.

CORPORATES
AUSTRALIAN FORMULA ONE GRAND PRIX

‘Legacy of sadness’: Glencore says sorry to traditional owners over NT mine as it seeks expansion

Original article by Lorena Allam
The Guardian Australia – Page: Online : 7-Jul-21

Steven Rooney, the general manager of Glencore’s McArthur River mine in the Northern Territory, has appeared before a federal parliamentary inquiry into the destruction of ancient indigenous rock shelters at Juukan Gorge in Western Australia. He told the inquiry that Glencore has apologised to the traditional owners for the lead and zinc mine’s impact on cultural sites and the environment. Rooney also said that Glencore is in the early stages of negotiating a land use agreement with the traditional owners.

CORPORATES
GLENCORE PLC, McARTHUR RIVER MINING PTY LTD

Price gap may trigger wave of oil, gas M&A

Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 12 & 14 : 7-Jul-21

Mark Busuttil of JP Morgan believes that some Australian-listed energy producers could become takeover targets due to the growing gap between oil and gas prices and their share prices. Potential targets could include Oil Search, Cooper Energy, Senex Energy and Carnarvon Petroleum. Busuttil says Beach Energy could potentially make a bid for Cooper Energy or Senex Energy, while he suggests that offshore players ExxonMobil and Total would be most likely to target Oil Search.

CORPORATES
OIL SEARCH LIMITED – ASX OSH, COOPER ENERGY LIMITED – ASX COE, SENEX ENERGY LIMITED – ASX SXY, CARNARVON PETROLEUM LIMITED – ASX CVN, EXXONMOBIL CORPORATION, TOTALENERGIES SE

Lew increases stake, rips into disastrous Myer

Original article by Sue Mitchell
The Australian Financial Review – Page: 1 & 16 : 7-Jul-21

Myer Holdings’ shares rose 15 per cent to $0.425 on 6 July, after revelations that businessman Solomon Lew has increased his stake prompted speculation of a takeover bid. Lew’s Premier Investments lifted its stake in Myer to 15.77 per cent on 5 July, and further share purchases on the following day is believed to have increased this to around 18 per cent. Lew says Myer’s performance has been disastrous for shareholders, employees, customers and suppliers. He has also criticised Myer’s board over its lack of progress regarding the appointment of a successor to former chairman Garry Hounsell.

CORPORATES
MYER HOLDINGS LIMITED – ASX MYR, PREMIER INVESTMENTS LIMITED – ASX PMV

Fortescue vindicated on hydrogen

Original article by Brad Thompson
The Australian Financial Review – Page: 14 : 7-Jul-21

Fortescue Metals Group has outlined the progress it has achieved in its goal of making its iron ore operations carbon-neutral by 2030. The pure-play producer has advised that it has produced high-purity ‘green’ iron from its Pilbara iron ore via a trial decarbonisation project that is being run by its Fortescue Future Industries subsidiary. The trials have also resulted in the production of ‘green’ cement by combining waste from the green iron process with other materials.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, FORTESCUE FUTURE INDUSTRIES PTY LTD

Masks off, footy crowds of up to 75 per cent in Victoria

Original article by Shannon Deery
Herald Sun – Page: 1 & 8 : 7-Jul-21

Senior Victorian government sources have confirmed that the state’s COVID-19 restrictions will be further eased in coming days. Amongst other things, office-based staff will no longer be required to wear a face mask at work, although masks will still be necessary in indoor settings such as public transport. Bill Lang of Small Business Australia has welcomed the move, saying that getting people to return to the Melbourne CBD is vital to the survival of hospitality and retail businesses in the city. The government is also expected to increase crowd numbers at football matches to 75 per cent of the venue’s capacity, and 50 per cent for live theatre. Victoria has recorded a sixth consecutive day with no locally-acquired COVID-19 cases.

CORPORATES
SMALL BUSINESS AUSTRALIA

ANZ-Roy Morgan Consumer Confidence down 4.4pts to 107.8 after multiple major Australian cities placed into lockdown

Original article by Roy Morgan
Market Research Update – Page: Online : 7-Jul-21

ANZ-Roy Morgan Consumer Confidence fell 4.4pts to 107.8 on July 3/4, after multiple Australian cities were concurrently placed under lockdown. Consumer Confidence plunged in Sydney (down 10pts) and Brisbane (down 8.7pts) and is now sitting below the 2021 weekly average of 111.2; however, it remains 15.7 points higher than the same week a year ago (92.1). Now 27% (down 1ppt) of Australians say their families are ‘better off’ financially than this time last year, while 27% (up 2ppts) say their families are ‘worse off’ financially. In addition, 37% (down 1ppt) of Australians expect their family to be ‘better off’ financially this time next year, and 15% (up 2ppts) expect to be ‘worse off’ financially. Some 16% (down 3ppts) of Australians expect ‘good times’ for the Australian economy over the next 12 months, while 19% (up 4ppts) expect ‘bad times’. Meanwhile, 41% (down 4ppts) of Australians say now is a ‘good time to buy’ major household items, while 24% (unchanged) say now is a ‘bad time to buy’.

CORPORATES
ROY MORGAN LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Sydney’s lockdown extended by a week

Original article by Alexandra Smith, Lucy Cormack, Mary Ward
The Sydney Morning Herald – Page: Online : 7-Jul-21

The New South Wales government is set to announce that the COVID-19 lockdown in Greater Sydney will be extended until at least 16 July, following a crisis cabinet meeting. Restrictions had been slated to be eased on 9 July, but the state has recorded 18 new locally-acquired COVID-19 cases in the last 24 hours; just 11 of these cases were self-isolating for the entire period they were infectious. The new cases include the sixth resident of an aged-care facility, who had been fully vaccinated; four workers at the facility have also tested positive. Meanwhile, Sydney students will return to remote learning when the school holidays end on 13 July, although schools in regional areas will re-open.

CORPORATES