MNI DATA IMPACT: Australia Unemployment Ticks Higher in March

By Lachlan Colquhoun

     SYDNEY (MNI) - Australia's Labour Force data for March was released by the

Australian Bureau of Statistics on Thursday. Following are five things of note.

Unemployment higher amid hiring spree. 

As expected, the March unemployment rate ticked higher to 5.0% after February's

eight year low of 4.9%. This was despite an employment increase, with 25,700 new

jobs in the month.

No big message for RBA. 

The Reserve Bank of Australia's minutes reveal the Bank is fixing on employment

and inflation as it ponders its next move in interest rates. noting that a rise

in unemployment combined with a fall in inflation could persuade them to cut

rates from the current 1.5%. Today's increase was marginal and expected, so is

unlikely to contribute to dovish sentiment at the RBA, which will now be

focusing on Q1 inflation data due next week.

Participation rate keeps rising. 

The March participation rate was up 0.1 points at 65.7% and was a major

statistical factor in a higher overall rate. The labour market expanded faster

than employment, explaining the increase in unemployment.

Full time employment surges. 

Full time employment jumped by 48,300, more than offsetting a 22,600 decline in

part time workers. This reversed the previous month's trend, when a fall of

7,300 in full time employment was offset by a 11,900 increase in part time jobs.

In the last twelve months full employment has grown by 289,800 nationally,

faster than the 14,900 increase in part time employment.

Uneven pattern across the states. 

Despite boasting the largest employment increase of 10,400, the unemployment

rate in Queensland increased by 0.7 points to 6.1%, the highest rate of all the

states. This is attributed to seasonal factors driving participation rates. The

lowest unemployment rate continues to be in New South Wales with 4.3%, although

the rate increased by 0.1 points in March as the number of employed people fell

by 2600.

--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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