In the latest release of Australia’s Labour Force Survey, the headline estimates for employment, unemployment, underemployment, participation, and hours worked in May 2023 have been announced. The data, released by the Australian Bureau of Statistics (ABS) on 15th June 2023, provides insights into the current state of the country’s labor market.
According to the trend estimates, the unemployment rate remained steady at 3.5% in May 2023, reflecting a stable job market. The participation rate, which measures the proportion of working-age population either employed or actively seeking work, also remained unchanged at 66.8%. This indicates that a consistent percentage of the population is engaged in the labor force.
However, the survey revealed an increase in underemployment, with the underemployment rate rising to 6.3%. Underemployment refers to individuals who are employed but still desire more hours of work. This increase suggests a higher number of workers seeking additional employment opportunities or longer working hours.
On a positive note, employment experienced growth in May 2023, reaching 14,003,400 people, an increase of 39,800 individuals or 0.3% compared to the previous month. This rise in employment was primarily driven by an increase of 33,100 people in full-time employment, bringing the total to 9,818,100. Part-time employment also saw a modest increase of 6,700 people, reaching 4,185,300. The part-time share of employment stood at 29.9%.
The employment-to-population ratio, which measures the proportion of the population that is employed, remained stable at 64.4%. This indicates that the overall employment level has kept pace with population growth.
In seasonally adjusted terms, the unemployment rate decreased slightly to 3.6%, while the participation rate increased to 66.9%. These figures suggest positive developments in the labor market, with more individuals actively participating and a lower unemployment rate.
Despite these positive trends, it’s important to note that the underemployment rate also increased to 6.4% in seasonally adjusted terms, indicating a persistent desire for more work hours among a segment of the workforce.
The monthly hours worked in all jobs experienced a slight increase of 0.4% to 1,944 million hours in trend terms. This reflects a growing volume of work being performed across various industries in the country.
The ABS has cautioned users to consider the impact of the COVID-19 pandemic on the labor market, which resulted in significant month-to-month fluctuations and trend breaks. However, the ABS remains optimistic about the stability and gradual improvement observed in the labor force data.
The Labour Force Survey provides valuable insights into Australia’s employment landscape, helping policymakers, economists, and businesses make informed decisions about workforce planning and economic strategies.