October 17, 2024 01:31 GMT
AUSTRALIA DATA: Uniformly Good News Re Q3 Labour Market
AUSTRALIA DATA
Jobs growth printed higher than expected again in September. Employment rose 64.1k after a downwardly-revised 42.6k in August. The unemployment rate was revised down to 4.1% and held steady at the lower rate in September. The participation rose 0.1pp to 67.2%, a new high. The continued strength in the labour market is likely going to keep the RBA on hold for now.
Australia employment vs hours worked 3m/3m average annualised %
Source: MNI - Market News/ABS
- The strength in September new jobs was driven by full-time (FT +51.6k), which has seen a recovery and signals some optimism regarding the outlook. Part-time (PT) jobs rose 12.5k after a 48.5k increase in August.
- Employment grew at 3.1% y/y in September up from 2.4% in June, the highest in 10 months. There were 155.6k new jobs in Q3 up from 111.7k in Q2 and there has been 373.8k YTD up from 316.7k in first 9 months of 2023. Both FT and PT employment saw a quarterly rise in Q3. The employment-to-population ratio is at a high of 64.4% signalling that those who want work are finding it.
- There was a significant chance of a downward revision to the August unemployment rate because it originally printed at 4.156% and is now 4.143%. September printed down further at 4.067%, the lowest since May. The Q3 unemployment rate was slightly higher than Q2 but both printed at 4.1% rounded. The number of unemployed fell for the second straight month in September.
- Even though working age population growth is slowing, the labour force increased at 3.6% y/y, fastest pace since October 2023, signalling confidence that jobs can be found.
- Hours worked rose 0.3% m/m to be up 2.4% y/y in September from 0.2% y/y in June with FT +1.9% y/y (-0.8%) and PT +4.5% (+5.4%).
Australia labour market y/y%
Source: MNI - Market News/ABS
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