Little Changed After Labour Market Data

Contained post-labour market chop in the space, although little ultimate net movement seen over that horizon, with YM and XM both unchanged on the day at typing.

• The headline uptick in employment matched expectations, with the same holding true for the participation rate, allowing the unemployment rate to edge 0.2ppt lower to 6.6%.
• Underemployment is now back to pre-COVID levels, while underutilisation remains elevated vs. pre-COVID levels, albeit well shy of the 2020 peak (last printing at 15.1%).
• On the hours worked front the ABS noted that "the recovery in hours worked and employment slowed in December, with hours worked increasing slightly (0.1%) and employment increasing 0.4%. This followed increases in hours worked (2.5%) and employment (0.7%) in November, and increases in hours worked (1.2%) and employment (1.4%) in October. Since the low point in May, total hours worked has increased by 161.5 million hours, recovering 87% of the 185.6 million hour decrease between March and May. After larger falls than employment early in the COVID-19 period, hours worked has since recorded stronger growth than employment. In December, hours worked was 1.4% lower than March and employment was 0.7% lower than March."