Key insights
- Australia's unemployment rate unexpectedly rose to 4.3% in February due to a decline in full-time positions and a surge in part-time employment. This mixed jobs report, featuring a slight decrease in hours worked, is unlikely to significantly alter the Reserve Bank of Australia's monetary policy stance. While seemingly isolated, weakening global labor markets can presage broader economic slowdowns, warranting monitoring for potential indirect effects on US equities.
Investing.com-- Australia’s unemployment rate rose above forecasts in February, as a decline in full-time jobs offset broader employment gains and pointed to a gradual softening in labour market conditions, official data showed on Thursday.
Data from the Australian Bureau of Statistics showed employment increased by 48,900 in February, above market expectations for a 20,800 rise and following a 26,100 gain in January.
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However, full-time employment fell by 30,500 positions, while part-time employment jumped by 79,400, indicating that most of the new jobs created were part-time roles.
The unemployment rate rose to 4.3% from 4.1% in January, exceeding expectations for no change, as the number of unemployed increased by 35,000 people.
The participation rate also climbed to 66.9% from 66.7%, reflecting more people entering or returning to the labour force.
ABS head of labour statistics Sean Crick said fewer unemployed people waiting to start jobs in January moved into employment in February than in recent years, while more people remained unemployed during the month.
Hours worked slipped 0.2% in February, suggesting softer labour demand even as headline employment remained firm. Older workers, particularly those aged 65 and above, accounted for much of the rise in part-time employment, according to the ABS.
The mixed report is unlikely to materially shift near-term expectations for the Reserve Bank of Australia, which hiked rates earlier this week and signalled caution as inflation remains above target