MNI DATA IMPACT: Australia Unemployment Edges Lower In Feb

--No Virus, Bush Fire Impact In Feb Data, ABS Says

By Lachlan Colquhoun

     SYDNEY (MNI) - Australia's unemployment rate fell 0.2 percentage points to

5.1% in February on a seasonally adjusted basis, the Australian Bureau of

Statistics said Thursday. 

     The rate is now back at its December 2019 level, following a 0.2 percentage

point increase in January. 

     Other points of note from the release include:

No bushfire or COVID-19 impact: According to the ABS, there was no impact on

employment from either the December/January bushfires or the beginning period of

the COVID-19 pandemic. Given that the economic impact of the pandemic began to

ramp up in March the expectation is that unemployment is set to rise in coming

months as businesses shed casual workers.

Full time and part time jobs both higher: Full time employment increased by

13,300 in February while 20,000 part time jobs were added. Total employment

increased by 26,700 and is up 2.0% on a y/y basis.

RBA's "gentle turning point": Prior to the bushfires and the pandemic, the RBA

spent much of the latter part of 2019 saying the economy was at a "gentle

turning point" as rate cuts were transmitted through. Today's data is more

evidence that there was some truth in the RBA's then assessment, but any

recovery is now likely to be wiped out by the pandemic impact.

Participation rate dips: The participation rate was down 0.01 percentage points

to 66.0%. The rate peaked at a record high of 66.2% in August 2019.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

--MNI Sydney Bureau; +61 405322399; email: lachlan.colquhoun.ext@marketnews.com

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