Jobs growth eases off

Unemployment rate static for third month

GROWTH in the national jobs market has slowed this year, leaving the unemployment rate steady at 5.5 per cent for a third straight month.

The total number of people with jobs rose by 4900 last month, figures from the Australian Bureau of Statistics show, well below market expectations of a gain of 20,000.

Following a gain of over 400,000 last year, the number of people with jobs has risen by 36,000 so far this year. The unemployment rate has not moved because the participation rate – a measure of the number of people working or looking for work – has risen.

Last month’s national jobless rate was revised down from 5.6 per cent to 5.5 per cent in the latest figures.

Across the states, Victoria and South Australia chalked up big gains last month.

Victoria’s jobless rate fell from 5.7 per cent to 5.2 per cent, while South Australia’s tumbled from 6.2 per cent to 5.6 per cent.

Unemployment increased in Western Australia, New South Wales and Tasmania.

ANZ senior economist Felicity Emmett said it was inevitable that there would be a period of softness in the labour market after the stellar performance last year.

“The slowdown in employment growth comes on the back of a very strong run through 2017 and with labour market leading indicators remaining positive there are still reasons to be optimistic about the outlook for employment Suncorp chairman Ziggy Switkowski will retire from the board and be replaced in the role by Christine McLoughlin and unemployment this year,” she said.

“Buoyant business conditions and ongoing strength in job vacancies suggest that employment will continue to expand and the unemployment rate should trend lower in coming months.”

Commonwealth Bank senior economist John Peters also said business surveys and job ad numbers pointed to further employment growth in coming months, but wage growth could remain very weak.

“Levels of underemployment and under-utilisation, whilst easing, are still way above levels that would signpost some acceleration in broad wages growth,” he said.

RBC rates strategist Robert Thompson said that, with the unemployment rate steady, there might be no move in interest rates for some time.