Australia: Unemployment rate rises as expected in January
Latest reading: The seasonally adjusted unemployment rate edged up to 4.1% in January (December: +4.0%), meeting market expectations. Meanwhile, the number of employed people rose by 44,000 in January in seasonally adjusted terms, deteriorating from the 60,000 increase recorded in December; an increase in full-time employment outweighed a decline in part-time employment in January. Meanwhile, the seasonally adjusted labor-force participation rate rose to an all-time high of 67.3% from December’s 67.1%—surprising markets on the upside—while the underemployment rate held steady at 6.0%.
Panelist insight: Goldman Sachs analysts commented:
“The data are consistent with our view that Australia continues to experience a migration-led labour supply shock, which is boosting employment and participation but putting downward pressure on wages growth. This dynamic is consistent with the downside surprise in yesterday’s Wage Price Index, as well as the recent easing in wage-sensitive CPI items.”