The Australian Bureau of Statistics (ABS) released data showing that the country’s unemployment rate remained steady at 3.5% in June (seasonally adjusted), consistent with the figure reported in May.
Bjorn Jarvis, the head of labour statistics at ABS, highlighted that despite the economic challenges posed by the pandemic, employment rose by approximately 33,000 individuals, leading to a decline of 11,000 in the number of unemployed people, thus keeping the unemployment rate unchanged.
He further added, “Australia’s employment-to-population ratio is currently at a record high of 64.5%, indicating a tight labour market. The rise in employment is in line with population growth, with over a million more people employed compared to pre-pandemic levels. In June 2023, 64.5% of people aged 15 years or older were employed, marking a 2.1 percentage point increase since March 2020.”
Hours Worked and Employment Trends
Monthly hours worked rose by 0.3% in June 2023, outpacing the growth in employment, which stood at 0.2% during the same period. Over the past year, hours worked saw a notable increase of 4.7%, surpassing the 3.0% rise in employment.
Mr Jarvis noted, “The strength in hours worked relative to employment growth indicates a robust demand for labour. Full-time employment experienced a significant surge of 380,000 people over the past year, while part-time employment saw a more modest increase of 30,000.”
Underemployment and Underutilisation
The underemployment rate remained at 6.4%, following a minor uptick of 0.3 percentage points in May. Notably, the underemployment rate is still 2.3 percentage points lower than pre-pandemic levels, indicating positive progress.
The underutilisation rate, which combines unemployment and underemployment rates, decreased by 0.1 percentage point to 9.9%.
Trend Data
In trend terms, Australia’s unemployment rate remained low at 3.5% for the eleventh consecutive month. Employment witnessed a 0.3% growth in June, with the employment-to-population ratio remaining at 64.5%.
The rise in full-time employment was particularly pronounced for women, reaching 57.9%, the highest level since 1994. In comparison, the increase in full-time employment for men was more modest, reaching approximately 81.5%, a level consistent with that of 2018.
The ABS cautions users to exercise care when using trend estimates for the period of COVID-19 pandemic disruptions due to multiple trend breaks.
Record Female Participation Rate
The female participation rate reached a record high of 62.6%, reflecting a growing trend of women’s active engagement in the labour market.
The ABS will release further information, including regional labour market statistics, in the upcoming issue of Labour Force, Australia, Detailed, scheduled for release on July 27, 2023.
https://www.abs.gov.au//media-centre/media-releases/unemployment-rate-35-cent-june