Jobs Growth Defies Expectations, Unemployment Rate Steadies

Job growth continues to run beyond market expectations as employment increased by 44,000 in August.

According to the Australian Bureau of Statistics’ (ABS) latest figures, full time jobs grew by an impressive 33,700, while part-time employment increased by 10,200. These outpaced the forecasted total growth of 18,400.

Although unemployment increased by 5,800, the rate remained stable at 5.3 per cent.

The underemployment rate, accounting for labours looking to work more hours, dipped to 8.1 per cent. The underutilisation rate, representing the sum of unemployment and underemployment rates, also fell to 13.4 per cent, the lowest figure since 2013.

Tristan Harrison of The Motley Fool said the figures were “a solid result for an economy that is supposedly slowing down and [where] the housing market is falling”, while Indeed economist Callam Pickering told the ABC that low underutilisation rate “should directly translate into higher wage growth over the remainder of the year”.