August labour force data: Unemployment remains at 4.2 per cent, Australia adds 47,500 new jobs

Australia has added 47,500 new jobs since July, while the unemployment rate remains steady at 4.2 per cent, diminishing hopes of the Reserve Bank putting forward a rate cut on Tuesday. Seasonally adjusted figures from the Australian Bureau of Statistics’ (ABS) August labour force data revealed there were 3100 less people employed on a full-time basis month-on-month in August (9,979,100). People employed in part-time positions increased by 50,600 to 4,479,500 people. ABS head of labour statistics Kate Lamb said the participation rate of 67.1 per cent was a record high, with the number of unemployed workers falling by about 10,000. This also resulted in growth in the employment-to-population ratio, which increased by 0.1 per cent to 64.3 per cent – placing it near the historical high of 64.4 per cent recorded in November. Unemployment Figures “This rise in the employment-to-population ratio was underpinned by an increase in the employment-to-population ratio for men, which rose by 0.2 per cent to 68.1 per cent, while the measure stayed at the near historical high of 60.6 per cent for women,” Ms Lamb said. “The high employment-to-population ratio and participation rate shows that there are still large numbers of people entering the labour force and finding work, as employers continue to look to fill a more than usual number of job vacancies.” Oxford Economics Australia head of macroeconomic forecasting Sean Langcake said Thursday’s figures was “good news for jobseekers” and the broader economy, however it would likely not result in relief for mortgage payers on Tuesday. RBA governor Michelle Bullock has repeatedly insisting inflation continues to be running too hot to warrant a rate cut, however the board will face growing pressure after the US Federal Reserve cut its benchmark rates by 0.5 per cent to between 4.75 and 5 per cent on Thursday. “The labour market is performing remarkably well considering the slowdown in growth. Moreover, forward indicators of demand have cooled, but still suggest the market will remain relatively tight,” he said. “However, it does confirm our view that the RBA will not be able to ease rates until at least Q2 2025.” Australia's Cash Rate 2022 Mr Langcake said the labour market was “gradually slackening” but continued to “post impressive employment gains”. “Steady population growth is adding to both the supply of and demand for labour, with employment increasing by 205,000 over the past five months,” he said. “Employment growth has been concentrated in segments of the labour market less impacted by interest rates. “An expansion of roles in or adjacent to the public sector is keeping life in the labour market at present.” BDO economics partner Anders Magnusson said the near record-high participation rate reflected increased workplace flexibility and more people, “especially women,” securing employment. “Labour supply is changing through various factors, including cost-of-living pressures prompting more people to look for work, increased work flexibility, and population growth driven by migrant workers seeking employment opportunities,” he said. Treasurer Jim Chalmers also welcomed the creation of 47,500 new jobs and said it was a “solid achievement in a slowing economy and softer labour market”. Although Labor missed out on its benchmark of creating a million jobs since coming into government, Dr Chalmers said its figures was still higher than “any other term of parliament in Australia’s history”. “We welcome the fact that most of the almost 978,000 new jobs now created under the Albanese Government are full time and the majority are for women,” he said. “We are all about more people working, earning more and keeping more of what they earn and this shows we are making good progress.”