Invest
Unemployment rate falls to pre-GFC low
The ABS has reported the lowest unemployment rate since 2008.
Unemployment rate falls to pre-GFC low
The unemployment rate fell 0.5 percentage points to 4.2 per cent in December, according to the Australian Bureau of Statistics (ABS), increasing expectations that the Reserve Bank may bring forward its plans to lift interest rates.
“This is the lowest unemployment rate since August 2008, just before the start of the Global Financial Crisis and Lehman Brothers collapse, when it was 4.0 per cent,” said ABS head of labour statistics Bjorn Jarvis.
“This is also close to the lowest unemployment rate in the monthly series – February 2008 – and for a rate below 4.0 we need to look back to the 1970’s when the survey was quarterly.”
Economists from ANZ and the Commonwealth Bank (CBA) have forecast that wages growth will accelerate to 3 per cent year-on-year by the second half of 2022, a major factor in determining the Reserve Bank’s decision to lift interest rates.
“The key issues now are how disruptive and how long the latest outbreak proves to be,” said CBA senior economist Kristina Clifton.
“Unlike during other outbreaks the government has not announced any additional support measures for households and businesses as no lockdowns have been put into place. This could prove problematic if significant disruption is not short lived.”
However, CBA said that the balance sheets of households and businesses were generally in good shape following previous government support and card spending data indicated a smaller dip in spending compared to lockdown periods.
According to the ABS, 64,800 new jobs were created during December, including 32,000 in NSW and 25,000 in Victoria.
“The latest data shows further recovery in employment following the large 366,000 increase in November,” Mr Jarvis said.
“This provides an indication of the state of the labour market in the first two weeks of December, before the large increase in COVID cases later in the month.”
The underemployment rate fell 0.8 percentage points to 6.6 per cent, the lowest level since November 2008, while hours worked increased by 1 per cent.
“The continued recovery in employment was also seen in strong increases in hours worked, as people continued to return to work in December,” said Mr Jarvis.
“The number of employed people who worked no hours due to economic and other COVID-related reasons fell from 138,000 people down to 85,000 people and was lower than in May.”
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