Unemployment rise offset by full-time jobs spike

THE seasonally adjusted unemployment rate inched ahead to 5.6 per cent in February as more people looked for jobs, however, a surge in fulltime positions has more than offset a fall in part-time jobs.

The total number of people with jobs rose by 17,500 in February, as the addition of 64,900 full-time jobs eclipsed the 47,400 drop off in part-time positions, seasonally adjusted figures from the Australian Bureau of Statistics show.

February’s unemployment rate came in slightly above expectations of 5.5 per cent.

The participation rate, which refers to the number of people who are either employed or are actively looking for work, has remained largely steady, increasing by less than 0.1 per cent, at 65.7 per cent.

The boost in full-time employment comes a day after Australian Council of Trade Unions secretary Sally McManus launched a nationwide campaign to halt the boom in part-time work.

Ms McManus called for casual, gig economy and labour hire workers to get the same minimum conditions as fulltime employees, including access to dismissal tribunals and collective bargaining, as well as a right to convert to permanent employment.

Commsec chief economist Craig James said February was the 17th straight month of jobs growth.

“When will the recordbreaking run of job gains end? The forward-looking indicators like job advertisements suggest that employment will continue to lift in coming months – so a near-term correction is not envisaged,” Mr James said.

The data did highlight a surge in the unemployment rate in Tasmania and an ongoing slide in jobs in Victoria.

Tasmania has the largest increase in the seasonally adjusted unemployment rate, up 0.7 percentage points to 6.0 per cent, followed by a 0.2 per cent increase in South Australia and Western Australia, to 6.3 per cent and 6.0 per cent.

The unemployment rate in NSW fell from 5.1 per cent to 4.8 per cent but Mr James said patches of weakness remain.

“So clearly more needs to be done in terms of job creation, but from an economy-wide perspective the 1.2 per cent lift in hours worked highlights a solid lift in activity.