The COVID-19 labour market shift: CoreLogic's Eliza Owen

The economic slowdown resultant from COVID-19 has changed working conditions for many. But quantifying the impact on labour markets at this stage is difficult.

That is because labour market data is not real time, but instead reference the first two weeks of the previous month to the data release date.

The start of the economic slowdown was not felt until halfway through March 2020, meaning unless the survey methods are altered, regular labour force data will not show an impact until the May edition.

However, there are some things we already know about Australia’s labour force that provides insight into how property markets may be particularly affected.

Many workers are having their hours reduced On April 7th, the ABS released new survey results on the impact of COVID-19 on businesses.

Over 1,200 business representatives responded, revealing changes that had been made to the workforce.

Of the actively trading businesses surveyed, about a quarter reported reducing staff hours over the past few weeks. A summary of businesses reporting reduced staff hours by size and industry is presented below. 

Reduced staff working hours is an early response businesses typically adopt during a downturn, with a view to preserving jobs

ELIZA OWEN is the Head of Research Australia at CoreLogic