LABOR has picked up support over the past month and Julia Gillard has substantially cut back Tony Abbott's lead as preferred PM, but the government would still be defeated in a landslide at an election held now.

And as the economy heads into uncertain times because of instability abroad, the Age/Nielsen poll has found that only 15 per cent believe Julia Gillard would be best to manage another economic crisis.

The Gillard government would still be defeated in a landslide election if one was to be held now. Credit:Andrew Meares

The Coalition's two-party vote has fallen three points to 58 per cent; Labor's is up three to 42 per cent in the poll of 1400 people taken Thursday to Saturday.

Ms Gillard's approval has risen four points to 38 per cent, while her disapproval has fallen five to 57 per cent. Mr Abbott's approval is down four points to 43 per cent; his disapproval is 52 per cent, up four.