Unemployment rate falls back to 3.5 per cent

March 16, 2023 10:33 AM AEDT | By AAPNEWS
 Unemployment rate falls back to 3.5 per cent
Image source: AAPNEWS

The unemployment rate has fallen back to 3.5 per cent in February from 3.7 per cent the previous month.

Around 64,600 jobs were added to the economy over the month, official Australian Bureau of Statistics labour force data shows.

"With employment increasing by around 65,000 people, and the number of unemployed decreasing by 17,000 people, the unemployment rate fell to 3.5 per cent," ABS head of labour statistics Bjorn Jarvis said.

"This was back to the level we saw in December."

The participation rate rose 0.1 percentage points to 66.6 per cent, also back to its December level. 

"The February increase in employment follows consecutive falls in December and January," Mr Jarvis said.

"In January, this reflected a larger than usual number of people waiting to start a new job, the majority of whom returned to or commenced their jobs in February."

But some forward-looking indicators, such as job vacancies and advertisement data, are pointing to a slowdown in employment.

Job marketplace SEEK reported a 1.6 per cent fall in job ads in February to be down 12.2 per cent year-on-year.

St George chief economist Besa Deda said the rapid recovery in net overseas migration was improving the supply of labour. 

Ms Deda said the jobs data would be central to the Reserve Bank's April cash rate decision.

She also said signs of financial instability in the US and now Europe would be putting more pressure on central banks, including the Reserve Bank, to take the accelerator off rate hikes.


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