The unemployment rate remained steady in August, coming in at 4.2 per cent, but employment growth remained ahead of market expectations at 47,000.
While consensus was for an unemployment rate of 4.2 per cent, employment was expected to peak at 25,000.
Data released by the Australian Bureau of Statistics (ABS) on Thursday showed that the number of unemployed people fell by around 10,000.
The ratio of unemployed versus employed resulted in a steady unemployment rate and a flat participation rate of a record 67.1 per cent, the ABS said.
Kate Lamb, ABS head of labour statistics, commented: “The growth in employment increased the employment-to-population ratio by 0.1 percentage point to 64.3 per cent, which is just below the November 2023 historical high of 64.4 per cent.
“While the number of unemployed people fell slightly to 627,000 in August, it has risen by around 45,000 people since the end of 2023,” Lamb said.
Seasonally adjusted monthly hours worked rose by 0.4 per cent, slightly stronger than the 0.3 per cent rise in employment.
Moreover, according to the ABS, the trend unemployment rate remained steady at 4.1 per cent for August.
In trend terms, employment grew by around 40,000 people (0.3 per cent), faster than the 20-year pre-pandemic average of 0.2 per cent.
Additionally, the employment-to-population ratio and the participation rate remained steady at their historical highs of 64.2 per cent and 67.0 per cent, respectively.
Lamb observed: “The employment and participation measures remain historically high, while unemployment and underemployment measures are still low, especially compared with what we saw before the pandemic. This suggests the labour market remains relatively tight.”
More to come.
