Australia’s unemployment rate remained at 4.2% in August, according to data released by the Australian Bureau of statistics (ABS) on September 18, 2024. This stability occurred despite a notable decrease of 41,000 full-time positions during the month.
The decline in full-time employment was partially offset by an increase of 36,000 part-time jobs. total employment fell by 5,000 people, while the number of unemployed individuals also decreased by 1,000, maintaining the unemployment rate. ABS Head of Labor Statistics, Sean Crick, confirmed these figures in the official release.
Alongside the employment figures, the labor force participation rate experienced a slight dip, falling by 0.1 percentage points to 66.8%. This indicates a small reduction in the proportion of the working-age population actively participating in the labor market.
The steady unemployment data arrives less than two weeks before the Reserve Bank of Australia’s (RBA) next meeting on interest rates. Though, economists do not anticipate this report will significantly influence the RBA to consider a fourth cash rate reduction this year. Market analysis currently assigns only a 14% probability to a rate cut on September 30,2024.
While the data aligns with economists’ forecasts, the RBA is likely to maintain its current monetary policy stance given the overall resilience of the labor market and broader economic conditions. Continued monitoring of employment trends will be crucial in shaping future policy decisions.
