OCTOBER 2016 Scope: This monthly newsletter By David Martine, Secretary, Treasury and Finance outlines economic and financial developments in Victoria, nationally and globally. Domestic developments Highlights Following seven consecutive monthly increases which saw Victoria’s annual pace of total and full-time employment growth Victorian employment rise by more than 100 000 people, leads the nation. a fall of 11 700 persons was recorded in September. However, labour market spare capacity Despite remains this, Victoria’s elevated, annual with the pace of total and full-time underemployment rate at near-record levels. jobs growth leads the nation. Of the 105 800 jobs added over the past year, 77 000 have been full-time positions. Victoria continues to record the fastest annual population growth across all jurisdictions, driven by net overseas migration. Victoria’s unemployment rate increased to 5.7 per cent in September, moving slightly the national average. moved further into optimistic territory in Consumer sentiment Reported quarterly, the underemployment rate was 9.5 per October, and Victorian business conditions were the highest of cent in August, only slightly below its historical peak, all states in September. indicating that wages growth is likely to remain low. Oil prices moved above $US50 a barrel after it was announced At the industry level, Victoria’s jobs growth over the year OPEC had reached a consensus to scale back production. to August was largely driven by the health care, social assistance and construction sectors. Consistent with strong growth in building activity in 2015-16, the latter has provided strong support for full-time employment. The pace of total and full-time employment growth in regional Victoria also leads the nation. The regional unemployment rate was 5.6 per cent in the three months to August, below the national regional average. However, labour market conditions remain uneven across the state, with the unemployment rate above 6 per cent in the Shepparton region. The youth unemployment rate is 2.0 percentage points lower than the same time last year, but it continues to be elevated in a number of metropolitan and regional areas, including Ballarat and Melbourne’s south eastern and western suburbs.
OCTOBER 2016 Scope: This monthly newsletter outlines economic and financial developments in Victoria, nationally and globally. By David Martine, Secretary, Treasury and Finance Highlights Victoria’s annual pace of total and full-time employment growth leads the nation. However, labour market spare capacity remains elevated, with the underemployment rate at near-record levels. Victoria continues to record the fastest annual population growth across all jurisdictions, driven by net overseas migration. Consumer sentiment moved further into optimistic territory in October, and Victorian business conditions were the highest of all states in September. Oil prices moved above $US50 a barrel after it was announced OPEC had reached a consensus to scale back production. Domestic developments Following seven consecutive monthly increases which saw Victorian employment rise by more than 100 000 people, a fall of 11 700 persons was recorded in September. Despite this, Victoria’s annual pace of total and full-time jobs growth leads the nation. Of the 105 800 jobs added over the past year, 77 000 have been full-time positions. Victoria’s unemployment rate increased to 5.7 per cent in September, moving slightly the national average. Reported quarterly, the underemployment rate was 9.5 per cent in August, only slightly below its historical peak, indicating that wages growth is likely to remain low. At the industry level, Victoria’s jobs growth over the year to August was largely driven by the health care, social assistance and construction sectors. Consistent with strong growth in building activity in 2015-16, the latter has provided strong support for full-time employment. The pace of total and full-time employment growth in regional Victoria also leads the nation. The regional unemployment rate was 5.6 per cent in the three months to August, below the national regional average. However, labour market conditions remain uneven across the state, with the unemployment rate above 6 per cent in the Shepparton region. The youth unemployment rate is 2.0 percentage points lower than the same time last year, but it continues to be elevated in a number of metropolitan and regional areas, including Ballarat and Melbourne’s south eastern and western suburbs.
Economic%20Update%20October%202016.docx