Perth, March 19: Australia’s labour market remained resilient in February, although the latest figures point to moderating conditions nationally and in Western Australia, according to the Australian Bureau of Statistics.
In trend terms, Australia’s unemployment rate eased to 4.2 per cent in February, while the participation rate held steady at 66.8 per cent. Employment increased to 14,721,400, the employment-to-population ratio rose to 64.0 per cent, underemployment remained unchanged at 5.9 per cent, and monthly hours worked increased to 2,009 million.
In seasonally adjusted terms, employment rose to 14,748,700 in February, up 48,900 from January, while the unemployment rate increased to 4.3 per cent from 4.1 per cent. The participation rate also edged higher to 66.9 per cent, with the employment-to-population ratio unchanged at 64.0 per cent and underemployment steady at 5.9 per cent.
Monthly hours worked in all jobs fell by 3 million hours to 2,007 million in seasonally adjusted terms. Full-time employment declined by 30,500 to 10,117,000 people, while part-time employment rose by 79,400 to 4,631,800 people.
Across the country, the figures suggest the labour market remains relatively tight, but growth is becoming more uneven as higher interest rates and softer economic conditions begin to weigh on hiring.
WA Jobs Dip
In Western Australia, the labour market softened in February, with seasonally adjusted employment falling to 1,668,900 people from 1,670,700 in January. The state’s unemployment rate rose to 4.2 per cent from 3.4 per cent, while the participation rate remained high at 68.6 per cent.
Despite the monthly decline, Western Australia continues to record one of the strongest participation rates in the country and remains among the lowest-unemployment jurisdictions, underscoring the relative strength of its labour market.
EY Senior Economist Paula Gadsby said the latest figures showed a moderation in Western Australia’s labour market, although underlying conditions remained healthy.
“Today’s labour market data showed a 3,600 fall in jobs in the Western Australia labour market in February, while the unemployment rate rose from 3.4 per cent to 4.2 per cent. Employment growth has continued to moderate, from high levels, rising by 0.9 per cent over the year to February.”
“Despite this, conditions remain healthy with WA having the lowest unemployment rate, after ACT and South Australia. WA also continues to have the highest participation rate of the major states at 68.6 per cent. Despite strong population growth, labour market conditions in WA remain relatively tight. The number of unemployed people to job vacancies is 1.5 compared to 1.8 for Australia.”
She said national labour market resilience would continue to shape the Reserve Bank’s policy outlook as it balances inflation pressures against slowing growth.
“Nationally, the robust labour market conditions and low unemployment will give the Reserve Bank the room it needs to raise interest rates further to battle high inflation. But it will be walking a fine line to ensure the labour market gains are preserved from here as growth conditions get tougher, while ensuring high inflation does not become entrenched.”
Media & PR: editor@dailystraits.com. Copyright 2021–Present DailyStraits.com. All rights reserved.