COVID-high jobless rate an ominous sign for energy shock

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"Australia's rising jobless rate in April is another ominous sign of the impact of oil shocks and difficult economic conditions," said Innes Willox, Chief Executive of the national employer association, Australian Industry Group.

The unemployment rate rose from 4.3% to 4.5% (seasonally adjusted) in April, its highest rate since November 2021 - when the country was still exiting COVID controls. Weakening was concentrated in the female and youth employee cohorts.

"Businesses are being materially impacted by the global energy shock, and things will undoubtedly and unfortunately worsen in the months ahead as we face higher inflation, most likely higher interest rates, and the results of disrupted supply chains," Mr Willox said.

"As the impact of the shock works through supply chains, we should expect the economy to weaken considerably. The job losses in April may prove the leading edge of this problem.

"Policymakers must be carefully attuned to these risks, and be ready to act decisively as further challenges emerge. The Federal Budget was a missed opportunity to provide greater certainty to industry on how we will navigate this crisis as a country," Mr Willox said.

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