Australia’s unemployment rate holds steady at six-year low of 5 pct, reinforces RBA’s bullish outlook

Australia’s unemployment rate held at a six-year low of 5 percent during the month of October, with no implications for the RBA, other than reinforcing the Bank’s bullish outlook, according to the latest report from ANZ Research.

The highlight of the October jobs report was the 42.3k gain in full-time jobs. While this was partially offset by a decline in part-time employment, the net result was a 33k increase in jobs that held the unemployment rate steady at 5 percent despite a higher participation rate. Confirming the strength of the report, hours worked rose 0.3 percent m/m.

Over the three months to October, a total of 86k jobs have been created, which is above the average rolling three month average of 70k for 2018 to date. Thus there is little evidence of a decline in the pace of job creation through 2018.

The underemployment rate was unchanged at 8.3 percent, meaning overall labour market underutilisation held steady at 13.3 percent. Employment growth was strongest in NSW, with a gain of 16k. The unemployment rate in NSW held steady at 4.4 percent, with only ACT lower at 3.7 percent.

Employment fell a touch in VIC, though this followed a strong gain in September, and the unemployment rate in VIC ticked down to 4.5 percent despite this drop. Employment also fell a bit in QLD, with the state unemployment rate rising to 6.3 percent. 

Meanwhile, QLD’s unemployment rate has been 6 percent or higher since late 2017.  SA, WA and TAS all gained jobs with their unemployment rates falling to 5.4 percent, 5.7 percent and 5.3 percent respectively. The unemployment rate in the NT rose to 4.6 percent, its highest level since September 2013.