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Labour Market: Unlikely To Shift RBA Views In Either Direction

AUSTRALIA DATA

Employment rose 33.5k in August, which was close to expectations. The unemployment rate unexpectedly rose 0.1pp to 3.5%, as the number of unemployed increased 14k and the participation rate recovered to 66.6%. But underemployment fell 0.1pp, as people work more hours.

  • While the data was close to expectations, it shows strength in the jobs market continues unabated. There is nothing here to shift RBA views in either direction for the October meeting.
  • Hours worked increased by 0.8% m/m and 7.3%y/y, recovering from an illness- and holiday-impacted July. This is the highest annual growth rate since 1989 (ex Covid period), showing that firms are increasing existing employees’ hours in the face of a shortage of suitable job candidates. Consistent with the fall in the underemployment rate.
  • In another sign that the labour market remains tight, full-time employment rose 58.8k (highest since May) while part-time fell 25.3k. Total employment growth is now 4.4% y/y (highest since 1989, apart from Covid-impacted 2021) and full-time jobs +5.8% y/y.
Growth in hours and employment y/y%

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Employment rose 33.5k in August, which was close to expectations. The unemployment rate unexpectedly rose 0.1pp to 3.5%, as the number of unemployed increased 14k and the participation rate recovered to 66.6%. But underemployment fell 0.1pp, as people work more hours.

  • While the data was close to expectations, it shows strength in the jobs market continues unabated. There is nothing here to shift RBA views in either direction for the October meeting.
  • Hours worked increased by 0.8% m/m and 7.3%y/y, recovering from an illness- and holiday-impacted July. This is the highest annual growth rate since 1989 (ex Covid period), showing that firms are increasing existing employees’ hours in the face of a shortage of suitable job candidates. Consistent with the fall in the underemployment rate.
  • In another sign that the labour market remains tight, full-time employment rose 58.8k (highest since May) while part-time fell 25.3k. Total employment growth is now 4.4% y/y (highest since 1989, apart from Covid-impacted 2021) and full-time jobs +5.8% y/y.
Growth in hours and employment y/y%

Keep reading...Show less