Full-Time Jobs & Lower Participation Nudge Australian Unemp. Lower

A roughly in line with exp. headline jobs number in Australia (driven solely by full-time jobs growth), coupled with a 0.1ppt downtick in the participation rate resulted in a 0.2ppt fall in the unemployment rate, which hit 6.4% (BBG median exp. of 6.5%). Underemployment fell to 8.1% from 8.5%, hitting levels not seen since early '19, while underutilisation fell to 14.5% from 15.1%, edging closer to pre-COVID levels.

• Alongside the release, the ABS noted that "hours worked declined between December and January (a fall of 4.9% in seasonally adjusted terms). After a tough 2020, more Australians than usual took leave in the first two weeks of January, particularly full-time workers. This fall in hours worked is different to the falls across April and May 2020, which resulted from the restrictions in the labour market, rather than people taking leave. However, the number of employed people who worked zero hours in early January in the capital cities also reflects some ongoing effects of recent lockdowns in Sydney and Melbourne."