Australia’s Job Market Growth in August

Investing.com– Australia’s job market grew much more than expected in August as the labor market continued to remain strong despite a cooling broader economy due to high interest rates.

Data from the Australian Bureau of Statistics showed that the total number of employed people rose by 47,500, significantly surpassing expectations of 26,400. However, this was a slight decline from the 58,200 increase reported in July.

The participation rate, which measures the percentage of the population in the employment sector, held steady at a record high of 67.1%, while the unemployment rate remained unchanged at 4.2%.

This data marks the fifth consecutive month of notable growth in Australia’s labor force, as businesses face challenges in filling a high number of vacancies, particularly for skilled positions.

Kate Lamb, head of labour statistics at ABS, noted, “The high employment-to-population ratio and participation rate show that there are still large numbers of people entering the labor force and finding work, as employers continue to seek to fill an unusually high number of job vacancies.”

The strength in the labor market has significantly contributed to consumer inflation in the country, providing the Reserve Bank of Australia with room to maintain elevated interest rates.