Nearly half a million jobs were created in the first year of the Albanese government, the strongest start on record according to Treasurer Jim Chalmers.
As Treasury and the Reserve Bank alike predict that the unemployment rate of 3.6 per cent will tick up in the months ahead as the squeeze of aggressive interest rate hikes plays out and the economy slows, the government in the meantime is spruiking its efforts to employ more people.
New Treasury analysis of Australian Bureau of Statistics data shows 465,000 jobs were created during the first year of the Albanese government (through to May), with the majority in the care economy and construction.
More than half of the new jobs went to women, and 80 per cent of all jobs were full time.
Of the new jobs, 131,000 were in the construction industry – 35,000 of which were in heavy and civil construction and 33,000 in building installation services like plumbing and electrical trades. A further 27,000 were in residential building construction.
Another 128,000 jobs were created in the care economy, with childcare services providing the biggest boost to the jobs boom, responsible for 62,000 new jobs.
More than 70,000 jobs were created in manufacturing.
Dr Chalmers said the government’s economic plan – “deliberately designed” to create more opportunities across the country – had come to fruition despite a backdrop of slowing global growth, higher prices and high interest rates.
“It’s pleasing that the biggest gains have been in construction, health care and social assistance and manufacturing – industries that are absolutely central to Labor’s plans for economic growth,” he said.
“We’re investing in the care economy, we’re investing in manufacturing, and we’re investing in critical infrastructure to create secure, well-paid jobs for Australian workers.
“More Australians are in work than ever before, the participation rate is higher than ever before and a greater share of women are in work than ever before. This is proof that our economic plan is working.”
The historic low unemployment rates of the last year is likely to end soon, given the 12 rate rises since last May have slowed Australia’s growth and impacted employment.
The government says investing in the areas it has will ensure the economy has a more robust base for the slow period ahead.
Dr Chalmers said Australia was in a position to weather the economic storms still ahead.
“While we know that slowing global growth, higher prices and higher interest rates will impact our economy and labour market and continue to strain household budgets over the coming months, Australia is in a better position than nearly anyone else to face the challenges ahead,” he said.