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What you need to earn to be considered rich in Australia with $90,000 average full-time salary

Australia’s average full-time salary has risen above $90,000 for the first time with unemployment plunging despite Sydney’s extended lockdown.

Professionals putting in 38 hours a week are now earning $1,737.10 a week, new Australian Bureau of Statistics data has revealed.

Intriguingly, the national unemployment rate in July fell to 4.6 per cent – the lowest since December 2008 – but economists are cautioning people against being optimistic amid fears Sydney could be in lockdown until Christmas.

The New South Wales jobless rate fell to 4.5 per cent, down from 5.1 per cent, even though Sydney has been in lockdown since June 26 and shows no sign of easing.

Australia’s average full-time salary has risen above $90,000 for the first time with unemployment plunging despite Sydney’s extended lockdown. Professionals putting in 38 hours a week are now earning $1,737.10 a week, new Australian Bureau of Statistics data has revealed (pictured are construction workers at Barangaroo on Sydney Harbour)

The jobless rate in Australia’s most populated state hasn’t been this low since January 2020, before the pandemic.

But the lockdown also saw people give up looking for work, which meant many people without a job weren’t classified as unemployed.

At face value, businesses appear to have relied on JobSaver government payments instead of retrenching staff but working hours have fallen dramatically in NSW.

New average weekly ordinary time earnings data for May also showed a 1.4 per cent increase in full-time salaries before bonuses and overtime to $90,329.

When penalties were factored in, average full-time salaries rose to $93,496.

Average salary levels, covering both full and part-time workers, stood at $67,902 with $1,306 the average weekly pay before tax. 

While unemployment fell, EY chief economist Jo Masters said the figures were compiled during the first fortnight of July before NSW banned construction work and closed non-essential retail, and ahead of Melbourne going back into lockdown.

‘Don’t be distracted by the positive headlines in today’s labour force survey,’ she said. 

‘The picture in August and September will look much different; while businesses are likely to try and adjust through hours worked, we expect jobs losses alongside rises in the unemployment and under-employment rates.’

The New South Wales jobless rate fell to 4.5 per cent, down from 5.1 per cent, even though Sydney has been in lockdown since June 26 and shows no sign of easing. EY chief economist Jo Masters said the figures were compiled during the first fortnight of July before NSW banned construction work and closed non-essential retail (pictured is a Blacktown green grocer)

The New South Wales jobless rate fell to 4.5 per cent, down from 5.1 per cent, even though Sydney has been in lockdown since June 26 and shows no sign of easing. EY chief economist Jo Masters said the figures were compiled during the first fortnight of July before NSW banned construction work and closed non-essential retail (pictured is a Blacktown green grocer)

Across Australia, 2,200 jobs were created with a record 13,156,400 people in work. 

A closer look at the NSW data showed 36,000 jobs were lost as 27,000 jobs were created, as hours worked fell by seven per cent.

‘Falls in unemployment and the unemployment rate may be counter-intuitive, given they have coincided with falls in employment and hours, but reflect the limited ability for people to actively look for work and be available for work during lockdowns,’ the ABS said.

‘This means that people are falling out of the labour force.’

The unemployment figures only count those who are actively seeking work, not those who gave up looking for a job during the lockdown.

In NSW, the participation rate fell to 64.9 per cent from 65.9 per cent. 

The Institute of Public Affairs, a free market think tank opposed to lockdowns, calculated the NSW jobless rate in July was 8.7 per cent, not 4.5 per cent.

They based this on those who had left the labour market since May and who were technically classified as employed but were working zero hours.

Read more at DailyMail.co.uk