The seasonally adjusted unemployment rate rose by 0.1 percentage point to 3.8 per cent in March, according to data released today by the Australian Bureau of Statistics (ABS).
The rate came in below expectations of a 3.9 per cent.
Bjorn Jarvis, ABS head of labour statistics said: “With employment falling by around 7,000 people and the number of unemployed rising by 21,000 people, the unemployment rate rose to 3.8 per cent.”
The small drop in employment in March followed a larger-than-usual flow of people into employment in February, following smaller-than-usual flows in December and January, the ABS explained.
“The labour market remained relatively tight in March, with an employment-to-population ratio and participation rate still close to their record highs in November 2023,” Jarvis said.
“While they have both fallen by 0.4 percentage points since then, they continue to be much higher than their pre-pandemic levels.
Namely, as a result of the fall in employment and the pace of growth in the population, the seasonally adjusted employment-to-population ratio fell 0.2 percentage points to 64.0 per cent and the participation rate fell 0.1 percentage point to 66.6 per cent.
Seasonally adjusted monthly hours worked rose by 0.9 per cent.
In trend terms, Jarvis said the growth rate in employment and hours worked was weaker than the strong growth during late 2022 and early 2023. However, the recent trend data still point to a tight labour market.
CBA on Wednesday said it expects the unemployment rate to rise to 3.9 per cent.
The unemployment rate in Australia grew to 4.1 per cent in January, before quickly subsiding to 3.7 per cent on the back of a large lift in employment in February.
More to come.
Maja Garaca Djurdjevic
Maja's career in journalism spans well over a decade across finance, business and politics. Now an experienced editor and reporter across all elements of the financial services sector, prior to joining Momentum Media, Maja reported for several established news outlets in Southeast Europe, scrutinising key processes in post-conflict societies.
