The Australian unemployment rate remained stable at 4.1% in April, unchanged from the 4.1% recorded in March, according to the latest figures released by the Australian Bureau of Statistics (ABS) on Thursday. This figure aligns precisely with market expectations, indicating a steady labor market.
In addition to the stable unemployment rate, the Australian Employment Change demonstrated significant growth, reaching 89,000 in April. This represents a substantial increase from the revised figure of 36,400 in March (originally reported as 32,200). The April figure significantly exceeded the consensus forecast of 20,000, signaling a robust expansion in the labor market. This positive surprise suggests stronger-than-anticipated economic activity and could influence future monetary policy decisions by the Reserve Bank of Australia (RBA).
The participation rate in Australia also experienced an uptick, climbing to 67.1% in April, compared to 66.8% in March. This indicates that a greater proportion of the working-age population is actively engaged in the labor force, either employed or seeking employment. Concurrently, Full-Time Employment saw a considerable increase of 59,500 in April, a notable rise from the revised figure of 12,200 in the previous period (originally reported as 15,000). Part-Time Employment also contributed to the overall employment growth, increasing by 29,500 in April, compared to a revised increase of 24,200 in the prior month (originally 17,200). These figures point to a broad-based improvement across both full-time and part-time employment categories.
Sean Crick, ABS head of labour statistics, highlighted key aspects of the report, noting:
The rise in employment was more pronounced for females, with an increase of 65,000 (0.9 per cent), while male employment rose by 24,000 (0.3 per cent). The growth in female employment was primarily driven by full-time positions, which increased by 42,000 (1.1 per cent) in April. The number of female part-time workers also increased, rising by 23,000 (0.8 per cent). This suggests a positive trend in female labor force participation and employment opportunities.
Over the past year, employment has grown by 390,000 people, representing a 2.7 per cent increase. This annual growth rate surpasses the population growth rate for individuals aged 15 years and over, which stood at 2.1 per cent over the same period. This indicates that the labor market is expanding at a faster pace than the population, potentially leading to tighter labor market conditions.
The strong growth in employment led to an increase in the employment-to-population ratio of 0.3 percentage points, reaching 64.4 per cent in April. This figure is just below the record high of 64.5 per cent observed in January, reflecting a high level of labor market utilization. The sustained strength in the employment-to-population ratio suggests a healthy and active labor market.
