Australian Unemployment Rate Sees a Slight Increase in October

The Australian Bureau of Statistics (ABS) has reported a 0.2 percentage point increase in the country's unemployment rate, reaching 3.7% in October (seasonally adjusted). Despite a rise in employment by 55,000 individuals, the number of unemployed also increased by 28,000. ABS Head of Labour Statistics, Bjorn Jarvis, noted that this brings the unemployment rate back to levels seen in July and August.

Shifts in Employment Patterns

The employment-to-population ratio rose by 0.1 percentage point to 64.5%, and the participation rate increased by 0.2 percentage points to 67.0%. Monthly hours worked and employment both saw a 0.5% growth in October, with a slowdown in the annual growth rate of hours worked to 1.7%, down from 5% earlier in the year.

Underemployment and Utilization Trends

The underemployment rate held steady at 6.3%, reflecting a 0.4 percentage point increase from October 2022 but remaining 2.4 percentage points lower than pre-pandemic levels. The underutilization rate, combining unemployment and underemployment, rose by 0.1 percentage point to 10.0%, 0.7 percentage points higher than the previous year but significantly lower than March 2020.

Trend Data and Economic Indicators

In October, the trend unemployment rate remained at 3.7%, while trend employment grew by around 28,000 people (0.2%). A notable trend is the slowing growth in hours worked over the past four months, indicating a potential softening in labor demand. The participation rate dropped slightly to 66.8%, while the employment-to-population ratio remained at 64.4%, reflecting resilience in the labor market.

Future Outlook

With employment growth aligning with population growth, the ABS suggests ongoing resilience in the labor market. However, the recent trends in part-time employment outpacing full-time growth raise questions about the evolving nature of Australia's workforce. The ABS will release detailed regional labor market information on November 23, 2023, providing a more comprehensive view of the economic landscape.

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