Unemployment drops to stimulate economy

Unemployment-dropped-monthonmonth-to-March-according-to-research-from-Roy-Morgan_157_65994_0_14099535_300Unemployment fell in Australia month-to-month in March, according to researched released by Roy Morgan on April 1.

Last month, 1.465 million people were unemployed, a figure that represents 11.6 per cent of the workforce. This is a 0.7 per cent decrease on February.

However, the figure for March 2014 actually demonstrates a 0.8 per cent in unemployment year-on-year.

Impact for Sydney

The reason for the drop in unemployment has been largely put down to a number of individuals returning to university, according to Roy Morgan.

“This month’s fall in unemployment was driven by a combination of a falling workforce (12,595,000, down 70,000) and a rise in full-time employment (up 46,000 to 7,364,000),” noted Roy Morgan Executive Chairman Gary Morgan.

A decrease in unemployment between February and March may spell good news for the economy, as well as in more specific locales, such as Sydney.

“As these indicators show, the Abbott government’s top priority must be to immediately undertake significant labour market reforms to re-invigorate the Australian economy and provide real hope for unemployed and under-employed Australians,” stated Mr Morgan.

A strong focus on labour policy could help drive Australia’s economy forward. This is particularly pertinent as foreign interest in the country goes from strength to strength.

Being able to offer favourable investment opportunities – such as Sydney property – could further increase overseas interests in the New South Wales capital, while benefiting local home owners.

As more people find themselves in a position of financial stability, buying Sydney real estate could become more realistic. On the back of the Reserve Bank of Australia decision to hold the cash rate at 2.5 per cent, this is an even better possibility.

Of course, Sydney is still grappling with high demand for property that’s not quite matched by its supply.

While news of a drop in unemployment is certainly good news for the Australian economy, policy tools that address housing supply should also be a focus of key decision makers.

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