Australia’s unemployment rate has remained stable at 4.2% for August, despite a significant decline in full-time employment. According to the latest data from the Australian Bureau of Statistics, over 41,000 full-time positions were lost during the month. This decline was somewhat balanced by an increase of 36,000 part-time jobs.
The overall employment situation saw a net decrease of 5,000 jobs, but there was also a slight reduction in the number of unemployed individuals, down by 1,000, as explained by the ABS’s head of labour statistics, Sean Crick. A small dip in the labour force participation rate was noted, which fell by 0.1 percentage points to 66.8%.
This employment data comes ahead of the Reserve Bank of Australia’s upcoming interest rate meeting in less than two weeks. While the steady unemployment figure aligns with economists’ expectations, it is not expected to significantly influence the likelihood of a fourth cash rate cut this year, which is currently seen as improbable, with market predictions suggesting only a 14% chance of such a move on September 30.
Overall, despite the loss of full-time roles, the resilience of part-time employment has helped keep the unemployment rate steady, signalling a mixed yet stable employment landscape in Australia.