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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
AUSTRALIA DATA
The January employment data came in worse than expected and posted thesecond consecutive monthly fall. The number of jobs fell 11.5k after a downwardly revised 20k drop in December while the unemployment rate rose to 3.7% from 3.5% even though the participation rate fell 0.1pp. While there are special factors, it seems to be signalling the start of a tentative easing of the very tight labour market, which is going to be good news to the RBA that its tightening is alleviating pressures in the economy. However vacancies remain elevated.
- The ABS notes that January is the “most seasonal time of the year” for the labour market. People often finish a job in January but already have another job. Thus while the number of unemployed rose 21.9k in January, there was also a “larger-than-usual rise in the number of unemployed with a job to go to”. As a result, the January rise in the unemployment rate could be at least partially reversed in February.
- The January trend mentioned above could also have been behind the 43.3k drop in the number of full-time jobs, which was the first drop since July. Part-time employment rose 31.8k but is still down 1% y/y. However, the underemployment rate was stable at 6.1% and down 0.5pp y/y.
- Hours worked fell 2.1% m/m, which was driven by a higher-than-usual number of people taking leave in January. The ABS points out that 43% of employed people “worked reduced or no hours because they were on leave” compared with 41% pre-Covid. Sick leave returned to around average. Hours worked though are 9.1% higher than in January 2022.
Australia underemployment vs underutilisation rates %
Source: MNI - Market News/ABS
Australia unemployed %
Source: MNI - Market News/ABS
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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