Invest
Jobless rate falls to 14-year low
The jobless rate fell to a 14-year low of 4.0 per cent in February.
Jobless rate falls to 14-year low
The seasonally adjusted unemployment rate fell to 4.0 per cent in February, the lowest on record since August 2008, according to data released on Thursday by the Australian Bureau of Statistics (ABS).
This is only the third time in the history of the monthly survey when unemployment was as low as 4.0 per cent.
“With employment increasing by 77,000 people and unemployment falling by 19,000, the unemployment rate fell by 0.2 percentage points, to 4.0 per cent,” Bjorn Jarvis, head of labour statistics at the ABS, said.
The unemployment rate for women hit a 28-year low, sitting at 3.8 per cent in February, while the unemployment rate for men fell to 4.2 per cent, its second lowest level since November 2008.
Overall, the latest job numbers beat market expectations. Following a loss of momentum in January, due to the Omicron outbreak, Australia’s labour market continued to tighten in February.
The participation rate too increased to a new record high of 66.4 per cent, as the tight jobs market encouraged workers into the labour force.
Seasonally adjusted hours worked rebounded in February by 8.9 per cent, following the large fall of 8.6 per cent in January, when an unseasonally high number of people were sick or on leave.
“While hours worked rebounded in February, they were still around 0.5 per cent below December, and also still slightly below (0.2 per cent) the pre-Delta period high of May 2021, reflecting a second month of impacts associated with the Omicron variant,” Mr Jarvis said.
Commenting on Thursday’s data, HSBC said labour supply will continue to improve now that Australia's international border has reopened.
“International workers, students, and backpackers are all likely to help labour supply meet labour demand,” the bank’s economists said in a statement.
“Australia's labour market should be highly attractive to workers from offshore, with record high job vacancies, one of the highest minimum wages in the developed world and comparatively good health and broader economic outcomes.
“As a result, we expect the jobs market to tighten at a more gradual pace over coming months.”
As for the Reserve Bank (RBA), which has kept a close eye on labour movements, HSBC does not expect the latest figures to alter the central bank’s view on the Australian economy.
Subdued wages growth despite a tight labour market is one of the key factors underpinning the RBA's 'patient' approach to its cash rate setting.
Nonetheless, with wages gradually lifting and a tightening labour market, coupled with building inflationary pressures, HSBC expects the RBA to start lifting its cash rate from Q3 2022.
RELATED ARTICLES
About the author
About the author
Economy
CPI data another piece in RBA's interest rate decision puzzle, says REIA
The latest Consumer Price Index (CPI) data from the Australian Bureau of Statistics (ABS) shows that inflation rose 3.4% in the 12 months to February 2024, unchanged from the previous two months, ...Read more
Economy
Including passive job seekers in unemployment measure doesn't impact economic cycle view, study finds
New research from e61 Institute has found that while current unemployment measures may not capture all job seekers, broader definitions that include passive job searchers do not provide better ...Read more
Economy
Survey reveals heightened job security concerns among IT workers in 2024
A recent survey conducted by Authority Hacker has revealed that 89.66% of IT workers in the United States have increased concerns about job loss in 2024. Read more
Economy
Australian founders adapt to the challenging fundraising environment with optimism and strategic shifts
The landscape for start-up funding in Australia has been increasingly challenging, but this has not dampened the spirit of the country's entrepreneurs. Read more
Economy
Signs point to possible US economic 'soft landing' in ClearBridge analysis
The US economy may be steering towards a 'soft landing' despite mixed signals from the stock market, according to a recent analysis by ClearBridge Investments. Read more
Economy
Alternative fund managers predict capital raising surge in 2024
Alternative investment fund managers are predicting a sizable increase in capital raising efforts in 2024, according to a global study by Ocorian, a leading alternative investment fund administratorRead more
Economy
Understanding the economic indicators that affect your earnings
The landscape of personal finance is profoundly influenced by broader economic trends and indicators. Read more
Economy
Navigate market turbulence with expert advice: no crystal ball needed
In an era fraught with investment market uncertainties, from fluctuating interest rates to geopolitical strife, seasoned market experts are guiding investors through the mire, offering sage advice on ...Read more
Economy
CPI data another piece in RBA's interest rate decision puzzle, says REIA
The latest Consumer Price Index (CPI) data from the Australian Bureau of Statistics (ABS) shows that inflation rose 3.4% in the 12 months to February 2024, unchanged from the previous two months, ...Read more
Economy
Including passive job seekers in unemployment measure doesn't impact economic cycle view, study finds
New research from e61 Institute has found that while current unemployment measures may not capture all job seekers, broader definitions that include passive job searchers do not provide better ...Read more
Economy
Survey reveals heightened job security concerns among IT workers in 2024
A recent survey conducted by Authority Hacker has revealed that 89.66% of IT workers in the United States have increased concerns about job loss in 2024. Read more
Economy
Australian founders adapt to the challenging fundraising environment with optimism and strategic shifts
The landscape for start-up funding in Australia has been increasingly challenging, but this has not dampened the spirit of the country's entrepreneurs. Read more
Economy
Signs point to possible US economic 'soft landing' in ClearBridge analysis
The US economy may be steering towards a 'soft landing' despite mixed signals from the stock market, according to a recent analysis by ClearBridge Investments. Read more
Economy
Alternative fund managers predict capital raising surge in 2024
Alternative investment fund managers are predicting a sizable increase in capital raising efforts in 2024, according to a global study by Ocorian, a leading alternative investment fund administratorRead more
Economy
Understanding the economic indicators that affect your earnings
The landscape of personal finance is profoundly influenced by broader economic trends and indicators. Read more
Economy
Navigate market turbulence with expert advice: no crystal ball needed
In an era fraught with investment market uncertainties, from fluctuating interest rates to geopolitical strife, seasoned market experts are guiding investors through the mire, offering sage advice on ...Read more
