Last week the Organisation for Economic Co-operation and Development published the 2009 OECD Employment Outlook, an annual assessment of labour market developments in countries which are members of the OECD. Australia fared better than many other countries in the report, but there are still causes for concern. Australia’s unemployment rate in July 2009 of 5.8% was lower than the OECD average of 8.3%, but still 40% higher than Australia’s unemployment rate in February 2008.
Unemployment is a key cause of poverty in Australia, with 55% of jobless households in Australia living in relative poverty, compared with the OECD average of 37%. The unemployment benefit (“Newstart Allowance”) for a single Australian adult with no children is $228 per week, compared with the average weekly earnings for full-time employment of $1,197.50 as at May 2009, meaning that unemployment benefits are around 19% of average weekly earnings.
Disability benefits and the age pension for retirees are slightly more generous than unemployment benefits. The age pension for a single person over the age of 65 is $334 per week, and the maximum disability support pension, available to people who are unable to work for two years as a result of illness, injury or disability, is the same amount.