Australia’s labor market experienced a slight dip in April, according to the latest data released by the Australian Bureau of Statistics (ABS). The seasonally-adjusted unemployment rate increased by 0.1 percentage points, reaching 3.7 percent. While this may be viewed as a minor setback, the overall resilience of Australia’s labor market remains evident, with employment levels still significantly higher than pre-pandemic levels and the underemployment rate remaining historically low.
Bjorn Jarvis, the ABS head of labour statistics, reported that employment saw a decline of approximately 4,000 individuals, while the number of unemployed individuals increased by 18,000. Jarvis noted that this small decline follows a period of steady growth during the first quarter of this year, with an average monthly increase of around 39,000 individuals.
Despite the slight weakening in employment, both the employment-to-population ratio and the participation rate remained considerably higher than pre-COVID-19 pandemic levels and near their historical peaks in 2022. The employment-to-population ratio experienced a decrease of 0.2 percentage points, settling at 64.2 percent, while the participation rate dropped by 0.1 percentage points, reaching 66.7 percent.
In terms of underemployment, the seasonally-adjusted rate showed a marginal decline of 0.1 percentage points, settling at 6.1 percent, following a 0.4 percentage point increase in March. Jarvis highlighted that the underemployment rate remains historically low, approximately 2.6 percentage points lower than pre-pandemic levels. This can be attributed to the sustained growth in hours worked, surpassing the growth in employment itself.
The underutilisation rate, which combines both unemployment and underemployment rates, observed a slight increase, reaching 9.8 percent. However, it still remained significantly lower, by 4.2 percentage points, than the level recorded in March 2020.
Examining specific employment categories, full-time employment saw a decrease of 27,100 individuals, settling at 9,726,500 individuals in seasonally-adjusted terms. Conversely, part-time employment experienced a rise of 22,800 individuals, reaching 4,155,600 individuals.
While these figures indicate a minor weakening in April, it is crucial to view them within the context of the remarkable recovery achieved since the onset of the COVID-19 pandemic. Australia continues to exhibit promising signs of stability and growth, with employment levels significantly higher than pre-pandemic levels, and the underemployment rate remaining historically low.
Policymakers and analysts will closely monitor future developments in Australia’s labor market to ensure continued progress. The minor setbacks in April should not overshadow the overall strength and resilience demonstrated by the nation’s workforce. As the economy continues to recover, Australia remains well-positioned to navigate any challenges that lie ahead.