MNI 5 Things:Australia Aug Labor Force Report Overall Positive

By Sophia Rodrigues

     SYDNEY (MNI) - Australia added more jobs than expected in August, keeping

the unemployment rate unchanged at 5.3% for the second straight month -- the

lowest since November 2012, data from the Australian Bureau of Statistics,

published Thursday, showed.

     Following are the five key observations we made from the data.

     --Overall a positive report that showed a rise in participation rate, a

rise in employment-to-population ratio, strong gains in employed numbers, a fall

in labor underemployment rate and a fall in labor underutilization rate. The

data supports the Reserve Bank of Australia's positive outlook for the labor

market.

     --The number of employed rose 44,000 in August, beating MNI median forecast

for a 15,000 gain. With the latest rise, the economy has added a strong 175,000

jobs in the eight months of this year at a solid average rate of 21,900. 

     --The number of unemployed rose 5,800 in August but this follows three

months of decline, and in the year so far, unemployed numbers have declined by

23,600. Compare this with 2017 which was a strong year for employment but saw

just a 7,000 decline in unemployed numbers in the entire year.

     --Underemployment rate fell to 8.1% in August from 8.4% in May, and to the

lowest since May 2014 when it was 7.8%. Underutilization rate dropped to 13.4%

from 13.9% in May, and the lowest since May 2013 when it was 13.2%. 

     --The rise in employment was mainly due to increase in full-time jobs that

rose 33,700 and was the third straight monthly rise in full-time jobs. Total

rise in full-time jobs this year was 105,000. Part-time jobs contributed 10,200

to rise in employment in August.

      Below are key details of the labor force data for August

                                               August                       July

--------------------------------------------------------------------------------

                                                                (M/M, seasonally

                           (M/M, seasonally adjusted)                  adjusted)

                                                            -4,300 (revised from

Employed Persons                              +44,000                    -3,900)

                            +15,000 (range -10,000 to

MNI Consensus                                +20,000)

Full-time Employment                          +33,700                    +20,100

Part-time Employment                          +10,200                    -24,400

Unemployment Rate                                5.3%         5.3% (no revision)

MNI Consensus               5.3% (range 5.2% to 5.5%)

                                                             65.6% (revised from

Participation Rate                              65.7%                     65.5%)

                           65.5% (range from 65.5% to

MNI Consensus                                  65.7%)

Unemployed Persons                             +5,800                     -9,200

Employment to

Population                                      62.2%                      62.1%

Underemployment Rate                             8.1%                 8.4% (May)

Underutilization Rate                           13.4%                13.9% (May)

--MNI Sydney Bureau; tel: +61 2-9716-5467; email: sophia.rodrigues@marketnews.com

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