Employment Landscape

Australia and New Zealand boast robust labour markets

Though no place is perfect, Australia and New Zealand remain desirable countries to reside in. This assertion is supported by data, particularly economic and workforce statistics.

"Healthy" aptly describes the labour market and working conditions for most of the economically active population in this region. According to a "State of the Global Workplace" report by Gallup, Australia and New Zealand perform impressively. Two key statistics underpin these claims:

• Life evaluation (Thriving): 63%

• Job climate (Good time to find a job): 59%

A positive outlook in Australia

he latest report from the Organisation for Economic Co-operation and Development (OECD) states that Australia excels in numerous well-being aspects and presents a more favourable outlook than other countries in the Better Life Index. For instance, the nation surpasses the average in income, employment, education, health, environmental quality, social connections, civic engagement, and life satisfaction.

According to the study, about 73% of people aged 15-64 in Australia are employed, exceeding the OECD employment average of 66%. However, the inequality gap persists: 77% of men are employed compared to 69% of women. In Australia, 13% of employees work long hours, higher than the OECD average of 10%; this includes 19% of men compared to 6% of women.

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Employment offers significant benefits such as a steady income, social inclusion, personal fulfilment, enhanced self-esteem, and the development of skills and competencies. In Australia, 73% of the working-age population enjoys these advantages, surpassing the OECD employment average.

Currently, only 1% of the working population in Australia has been unemployed for a year or more, placing the country below the OECD average of 1.3%.

Employment and wage numbers

Australia also boasts some of the highest wages globally, attracting expatriates. The current minimum wage per hour is 18.93 Australian dollars, amounting to 719.20 Australian dollars weekly for a 38-hour workweek. This federal mandate, effective since July 2018, establishes a baseline for compensation by Australian companies. Despite comparatively high wages, there are concerns about slow wage growth amidst rising living costs. Nevertheless, most people lead comfortable lives.

Unemployment in Australia has stabilised at 5%, even with the annual creation of 200,000 new job positions. Comparatively, Australia's unemployment rate is average, higher than in Germany, the USA, and England but lower than in Canada and France.

Professor Michael Johnson, a labour economist at the Australian National University, highlights the benefits of employment. "Paid work not only provides a source of income but also contributes to social inclusion and personal fulfilment," he said, stressing the importance of policies promoting decent work opportunities and work-life balance to maximise these benefits.

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Australia's low long-term unemployment rate, Professor Johnson notes, reflects its resilient job market and effective job seeker support systems. However, he cautions against complacency, urging continued efforts to tackle employment barriers and enhance workforce participation.

Australia's job market is expansive and expected to grow over the next five years, presenting an opportune time for those considering relocation for work due to reduced competition for positions.

Dr. Sarah Richardson, an economist at the University of Melbourne, highlights Australia's high minimum wage as a draw for skilled workers worldwide. "Australia's robust wage structure not only attracts talent but also ensures a decent standard of living for its workforce," she said.

However, Dr. Richardson warned that stagnant wage growth relative to inflation could challenge maintaining this attraction.

Employment prospects in New Zealand

New Zealand also scores highly in the OECD report, excelling in income, jobs, education, health, environmental quality, social connections, civic engagement, and life satisfaction.

About 77% of people aged 15 to 64 in New Zealand are employed, above the OECD average of 66%. Notably, 81% of men and 72% of women are employed.

Also, in New Zealand, 14% of employees work very long hours, higher than the OECD average of 10%, with 19% of men working very long hours compared to 9% of women.

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