According to data from the Australian Bureau of Statistics (ABS), the unemployment rate in Australia remained at 3.7% in August (seasonally adjusted). The ABS reported that employment increased by around 65,000 people, while the number of unemployed individuals only dropped slightly by around 3,000 people.
The large increase in employment for August followed a small drop in July, primarily around the school holiday period. Over the past two months, the average employment growth was approximately 32,000 people per month, which is similar to the average growth over the past year.
The employment-to-population ratio rose by 0.1 percentage point to 64.5%, near the record high in June, indicating a tight labor market. The participation rate also increased to a record high of 67.0% in August, reflecting the strong labor market conditions.
Underemployment rate increased by 0.2 percentage points to 6.6% in August
Monthly hours worked fell by 0.5% in August, while employment rose by 0.5%. However, despite the small fall in hours worked for August, they were 3.7% higher than in August 2022, reflecting faster growth than the 3.0% annual increase in employment.
The underemployment rate increased by 0.2 percentage points to 6.6% in August, which was 0.6 percentage points higher than in August 2022 but still lower than pre-pandemic levels. The underutilization rate, combining unemployment and underemployment, rose by 0.1 percentage point to 10.2%.
In trend terms, the unemployment rate remained at 3.7%, with employment growing by around 28,000 people and hours worked rising by 0.2% in August. Over the past year, employment increased by 2.9%, and hours worked increased by 4.6%. The participation rate reached a record high of 67.0%.
The ABS noted that, in trend terms, all key indicators still point to a tight labor market.
This data provides insights into the labor market in Australia, reflecting both the growth in employment and challenges in the form of underemployment.
