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AN extra 36,000 jobs in November lowered the unemployment rate to 3.9 per cent as well as wide expectations of a February interest rate cut.
David Taylor, the Australian Bureau of Statistics’ head of labour statistics said that the number of unemployed that month fell by 27,000 people.
“In November we saw a higher than usual number of people moving into employment who were unemployed and waiting to start work in October,” he said in an ABS statement.
“This contributed to the rise in employment and fall in unemployment.”
Employment grew 0.2 per cent in November 2024 after an average monthly rise of 0.3 per cent since the middle of 2024 in line with recent population growth.
“The participation rate fell by 0.1 percentage point to 67.0 per cent in November, from the historic high of 67.1 per cent in September,” Taylor said.
“Despite the fall, the participation rate was the same as a year ago, and 1.5 percentage points higher than March 2020,” Mr Taylor said.
The employment to population ratio rose marginally to 64.4 per cent, equal to the level a year ago and 2.2 percentage points above the pre-pandemic level.
“The recent growth in population has boosted the labour supply as employment has kept up with population growth,” Taylor said.
On Tuesday, the Reserve Bank announced the cash rate would stay unchanged, at 4.45 per cent, and the interest rate at 4.25 per cent.
The RBA says inflation remains too high amid overseas political uncertainty.
WORKING HOURS
Monthly hours worked (115) fell marginally in November from previous increases of around 0.3 per cent between June and October 2024.
“This month marks the first time in six months when hours worked growth did not match employment growth,” he said.
“Despite the slight fall in hours worked in November, hours grew over the year in line with employment and population growth.”
The underemployment rate fell 0.1 percentage point to 6.1 per cent for the month compared to 0.6 percentage points in November 2023, and 2.6 percentage points lower than March 2020.
TRENDING
The trend unemployment rate remained at 4 per cent as jobs grew by around 35,000 people (0.2 per cent), the same rate as the 20-year pre-pandemic average (0.2 per cent).
Hours worked grew at the same pace as employment, rising by 0.2 per cent.
“Compared with outcomes before the COVID-19 pandemic, the unemployment and underemployment measures are still low, while trend employment and participation measures are around all-time highs,” Taylor said.
“This suggests the labour market continues to be relatively tight,” he said.
