Australia February employment jumps, jobless rate still rises
The RBA has judged that the labour market had tightened a little recently as the economy picked up pace after three rate cuts last year
Add BT as a preferred source
[SYDNEY] Australian employment rose by more than expected in February, though the jobless rate ticked up to a three-month high as more people joined the labour force, a mixed report that failed to move the dial for the interest rate outlook.
Figures from the Australian Bureau of Statistics (ABS) on Thursday (Mar 19) showed net employment rose 48,900 in February from January, when it rose a revised 26,000. That was well above market forecasts of a 20,000 gain and was driven by a gain of 79,400 in part-time jobs.
Full-time jobs, however, fell 30,500 after a strong rise the month before. The jobless rate rose to 4.3 per cent, when analysts had looked for a steady 4.1 per cent, as the participation rate climbed to 66.9 per cent.
“This month we saw fewer people who were unemployed and waiting to start a job in January move into employment in February, compared to recent Februarys,” said Sean Crick, ABS head of labour statistics.
“We also saw more people remaining unemployed this month compared to recent Februarys.”
Crick added that the surge in part-time jobs was driven by those aged 65 and over.
Navigate Asia in
a new global order
Get the insights delivered to your inbox.
The Reserve Bank of Australia (RBA) has judged that the labour market had tightened a little recently as the economy picked up pace after three rate cuts last year, which was why the board raised rates by a quarter-point to 4.1 per cent just on Tuesday.
Markets now imply around an even chance the RBA will raise rates to 4.35 per cent at its May meeting. REUTERS
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
