First Quarterly Decline in Hours Worked in Australia Since 2021

Highlights:

• Australia experienced a 0.7% decline in hours worked, marking the first quarterly decrease since September 2021.
• While the number of filled jobs increased by 0.8% for the quarter, the growth rate has decelerated compared to earlier in the year.
• While the number of filled jobs continues to rise, the growth rate has slowed down over the last two quarters.

Decline in Hours Worked:

In the September quarter of 2023, Australia experienced a 0.7% decline in hours worked, marking the first quarterly decrease since September 2021. This information was disclosed by the Australian Bureau of Statistics (ABS). Despite the recent dip, annual growth remains robust at 4.2%, surpassing historical data dating back to the September quarter of 1994.

Shift in Employment Trends:

While the number of filled jobs increased by 0.8% for the quarter, the growth rate has decelerated compared to earlier in the year. Notably, the recent labor force data suggests a surge in part-time employment, aligning with a decline in both job growth and hours worked. Moreover, the number of multiple job-holders decreased by 0.8% in the September quarter, with the rate for women reaching a new high of 7.9%.

Gender Disparities in Job Trends:

The data indicates that working multiple jobs remains more common for women, with approximately one in 13 employed women holding multiple jobs compared to one in 18 employed men.

Jobs Growth and Vacancies:

While the number of filled jobs continues to rise, the growth rate has slowed down over the last two quarters. Additionally, job vacancies have experienced a decline for the fourth consecutive time since the record high in the September quarter of 2022. However, despite the 15.6% fall over the year, job vacancies remain significantly higher than pre-pandemic levels, currently at 85% higher.

Industry-Specific Trends:

In terms of industry-specific trends, Health care and social assistance and Accommodation and food services witnessed the most substantial increases in filled jobs, while the Construction industry experienced the largest decline in hours worked.

Labor Income and Wage Index:

Total labor income increased by 2.4% in the current quarter, with the Health care and social assistance industry contributing significantly. This industry also played a crucial role in the 1.3% increase in the September quarter 2023 Wage Price Index.

Overall, the data portrays a complex picture of Australia's labor market, highlighting shifts in employment patterns and industry-specific impacts on hours worked and wages.

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