Abstract

The Australian labour market in 2016 was characterised by fragmented improvements. While headline economic growth has strengthened, a pessimistic business environment has been accompanied by patchy employment growth. This growth has been driven by male part-time employment and roles in the lower wage segments of the labour market, including clerical, community service and manual labour occupations. While the unemployment rate has fallen and retrenchments have dropped across the labour market, youth unemployment remains stubbornly high, while older job seekers have become more likely to fall into long-term unemployment. High youth unemployment has stimulated debate about the role and regulation of unpaid work experience, while popular commentary about the effects of automation on the labour market is yet to appear in the statistics. Wage growth remains very subdued.

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