Here’s an interesting chart from RBA Governor Philip Lowe’s speech to the Australia-Israel Chamber of Commerce in Perth today.
It shows the percentage increase in total state employment growth over the past decade, breaking it down by jobs created by net overseas migration, net interstate migration and for people already living in each state.
Net overseas migration has driven the vast bulk of the increase over the past decade, especially in the past five years, outpacing employment growth among those already living in each state.
Stronger net overseas migration, along with stronger labour market conditions, saw the size of Australia’s labour force — combining workers and those actively seeking work — increase by 406,700 in the 12 months to February, nearly as fast as the 420,700 lift in total employment over the same period.
With labour supply nearly as strong as demand, it has meant unemployment has stayed higher than what would otherwise have been the case, likely contributing to weakness in wage pressures.