Australia’s seasonally adjusted unemployment rate has risen to 4.1% in March, with 3,000 individuals leaving the workforce, according to the latest data from the Australian Bureau of Statistics (ABS). Despite this slight increase in unemployment, the job market showed resilience, as over 32,000 people secured employment during the month.
Sean Crick, the head of labour statistics at ABS, noted that the rate of people entering employment is experiencing its highest annual growth in two decades. He explained that the rise in the unemployment rate—from which 3,000 more people were added to the tally of unemployed individuals—did not negate the overall job creation trend. The employment-to-population ratio remained steady at 64.1%, while the participation rate experienced a modest increase to 66.8%.
However, adverse weather conditions, notably stemming from Cyclone Alfred, impacted the total hours worked across the country. Crick pointed out that an increased number of individuals reported reduced working hours due to these severe weather events affecting New South Wales and Queensland.
The unemployment data, coupled with inflation figures and ongoing international trade tensions, including those related to tariffs imposed by the former Trump administration, will likely influence the Reserve Bank of Australia’s (RBA) upcoming interest rate decision, scheduled for May 20. Overall, the labour market continues to show signs of growth, indicating resilience even in the face of challenges.