🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

Australia jobs shrink slightly in March, but labor market remains tight

Published 18/04/2024, 02:44
© Reuters.
AUD/USD
-
AXJO
-

Investing.com-- Australia’s labor force shrank slightly in March following an outsized increase in the prior month, although the labor market was still relatively tight as unemployment remained low and participation remained high.

The total number of employed people fell 6,600 in March, data from the Australian Bureau of Statistics showed on Thursday. The reading was weaker than expectations for an increase of 7,200 people, and slowed from the bumper 116,500 jump seen in the prior month.

Australia’s participation rate- ie the percentage of the working-age population that is in the workforce- fell slightly to 66.6% from 66.7% in the prior month. 

The country’s unemployment rate rose less than expected to 3.8% in March from 3.7% in the prior month, but remained well below two-year highs hit earlier in 2024.

While Thursday’s reading showed some contraction in the labor force, the sector still remained largely tight after growing rapidly over the past two years. 

“The labour market remained relatively tight in March, with an employment-to-population ratio and participation rate still close to their record highs in November 2023. While they have both fallen by 0.4 percentage points since then, they continue to be much higher than their pre-pandemic levels,” Bjorn Jarvis, ABS head of labour statistics said in a note. 

Tightness in the labor market is among the key considerations for the Reserve Bank of Australia in altering interest rates, given that a strong jobs market also drove inflation higher over the past two years. 

The RBA is likely to keep rates higher for longer in the face of a strong labor force and sticky inflation.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.