Strong jobs result increases chances of the RBA lifting rates again
Most of the details in the March jobs data point to strong demand in the economy, increasing the likelihood of further interest rate rises.
Lauren Ford, ABS head of labour statistics, said both the employment-to-population ratio and the participation rate remain close to historic highs. These reflect “a tight labour market and explaining why employers are finding it hard to fill the high number of job vacancies”.
Ford noted female employment is up 81,000 over the past two months alone, lifting the female participation rate to a record high of 62.5%. Their employment-to-population ratio was also a record 60.4%.
Overall, only last October’s 3.4% jobless rate has been lower during the current cycle. (Gough Whitlam was still PM when it was last at these lows.)
While hours worked edged 0.2% lower in March, the tally held on to most of the 3.8% jump in February.
“Over the past 12 months, hours worked has increased 5.5%, outpacing the 3.3% increase in employment,” Ford said. “Since March 2020, hours worked have increased 8.4%, compared to a 7.0% increase in employment.
“The strength in hours worked relative to employment shows the high level of demand for labour, to some extent, is being absorbed by people working more hours,” she said.
Among the states and territories, the ACT’s 2.8% jobless rate, seasonally adjusted, remains the lowest. NSW’s came in at 3.3%, to lead the big states.