Australia Unemployment Rate Holds at 4.1% as Jobs Growth Slows
Australia’s unemployment rate remained steady in January, even as employment growth eased from the previous month. Official data released on Thursday highlighted a labour market that continues to show resilience despite moderating hiring momentum.
According to the Australian Bureau of Statistics, total employment increased by 17,800 jobs in January compared to December. While the figure marked continued job creation, it fell short of market expectations for a 20,000 rise and was significantly lower than December’s strong 65,200 gain.
Full-Time Jobs Offset Part-Time Decline
Employment growth was driven primarily by a sharp rise of 50,500 full-time positions. However, this was partially offset by a decline of 33,000 part-time jobs, resulting in more modest overall growth.
The seasonally adjusted unemployment rate held at 4.1%, coming in slightly below forecasts of 4.2%. Meanwhile, the participation rate edged down to 66.7%, compared to record highs of 68.5% recorded a year earlier.
Hours Worked Increase Despite Slower Hiring
Total hours worked rose by 0.6% in January, with full-time hours climbing 0.7%. The increase suggests that employers relied more heavily on existing staff, particularly as fewer workers reported reduced hours during the summer holiday period.
RBA Signals Further Rate Hikes Ahead
The latest labour market data follow the Reserve Bank of Australia’s recent decision to raise its cash rate to 3.85%. The central bank cited persistent inflation and continued tightness in the labour market as key reasons for the move.
The RBA has also indicated that additional interest rate hikes may be necessary this year to bring inflation back within its target range, keeping markets focused on future monetary policy decisions.
